Google receives $25m tax break to build data centre in Nevada

Google receives $25m tax break to build data centre in Nevada

Sundar Pichai Google.png

Google (NASDAQ: GOOGL) will receive over $25 million in tax breaks after unveiling its plans for a $600 million data centre in southern Nevada, according to state officials.

The incentives for the Northern Nevada data centre were requested through Google subsidiary Design, LLC.

The company previously committed $600 million to the data centre in the Las Vegas suburb of Henderson.

In July of 2019, Google officially broke ground on the Henderson data centre and revealed that once fully operational, the facility will employ a number of people in a variety of full-time and contractor roles, including computer technicians, engineers, and various food services, maintenance, and security roles.

Google also recently revealed that it would be investing $600 million to build a data centre at the Tahoe Reno Industrial Centre in northern Nevada, bringing its total investment in the state to $1.8 billion. The company has invested $300 million in the Reno facility.

Steve Sisolak, Governor of Nevada and seven members of the state Office of Economic Development board approved more than $25 million in tax breaks for the construction of the company's Henderson data centre, with the facility expected to open in 2021.

Michael Brown, director of the development board said in several reports that this is a very good deal for Nevada.

In return for the $25 million abatement that Google will receive, the company is set to make a $427 million impact on the economy over 20 years and generate USD 94 million in tax revenue over 20 years.

At the beginning of the year, a $1 billion solar farm project was announced to be built directly south of an Indian reservation and will help feed Google’s data centre near Las Vegas.

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