Dell has bought a piece of land in Quincy, Washington, which it possibly plans to use to build a new data center, according to local news reports.

The IT equipment maker paid more than $3.6m to previous owners of the property that may become the site of what is known as Project Roosevelt, Seattle Daily Journal of Commerce reported. According to The Wenatchee World, the property is located near an existing Microsoft data center.

A number of technology companies have chosen the Quincy area to locate large-scale data centers, including Yahoo! and Sabey – a data center operator. The area is attractive because of reportedly low electricity rates, favorable tax environment and availability of hydroelectric power.

In March, Washington lawmakers approved a temporary sales-tax exemption for data center developers and operators. The tax breaks include sales and use of servers, software and electrical infrastructure components for data centers located in rural areas within the state.