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Data Center Sales Tax Incentives

Companies that build data or network operation centers of at least 25,000 square feet and invest at least $30 million within 48 months may qualify for valuable tax breaks.

Qualifying projects receive sales tax exemptions for up to 20 years on:

  • Computers and servers
  • Cooling and energy equipment
  • Energy use
  • Software

And pay no personal property tax. Ever.

In addition, Minnesota DOES NOT tax:

  • Personal property
  • Inventories
  • Utilities
  • Internet access
  • Information services
  • Custom-created software

These exemptions create an extremely favorable climate for data centers.

Companies that substantially refurbish a data or network operations center of at least 25,000 square feet and invest at least $50 million within 24 months may qualify for the Data Center Sales Tax incentives.

Apply for the Sales Tax Exemptions

To become a designated qualified data center and receive these sales tax exemptions, companies must first be certified to participate in the program.

Complete this Data Center Certification Application (for an accessible version of this document contact Stephen Wolff at 651-259-7415) and submit according to the instructions.

Learn more about how the Minnesota Department of Revenue processes sales tax refunds for qualified data center exemptions.

For More Information

For questions about applying, eligible or qualifying expenditures, how the program can benefit your company, or facility certification status contact:

For questions about filing or checking the status of an existing sales and use tax refund claim, contact the Minnesota Department of Revenue at:

Read the enabling statute - Minn. Stat. 297A.68 subd. 42.

List of Designated Qualified Data Centers

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