Attracted by tax incentives in Reno Nevada, Rackspace has aqpplied to build a new facility in the Reno Technology Park, near Apple’s data center.

Rackspace is applying for two 20 year tax abatements, according to the Reno Gazette Journal: a reduction in sales tax to two percent and a 75 percent abatement on the personal property tax. Rackspace Chief Operating Officer Mark Roenigk has previously been quoted as saying that tax incentives are the key differentiator in the Rackspace’s choice of new locations. 

Saving millions

Over the next twenty years, the two abatements are expected to save the company $33.5 million, while Rackspace puts in a capital investment of $422 million, primarily in the construction and outfitting of a data center that could grow as large as 150,000 sq ft (14,000 sq m).

Rackspace expects to contribute over $15 million annually to the local economy, in addition to this capital investment, in the form of both direct impact spending, such as a projected $95 million in salaries over the 20 years as well as secondary impact to local business.

Rackspace says the local authorities will turn a profit, gaining an overall increase of $1.41 in new taxes for every $1 in tax abatement. Also, as many as 250 construction workers could be employed for each phase of the data center buildout.

Rackspace predicts it will create fifty new technology jobs at the data center, at an average salary of almost $30/hour. The company also promises to work with local educational institutions to develop home grown cloud technologists to fill an additional 65 positions at the facility during the 20 year cycle.

Current plans are to have the facility operational by September 2017.