The 30-Second Walk that can Save You Millions per Year on Your Chicago Data Center

By October 22, 2020No Comments

Your data center is a critical part of your technology budget, and that budget is significantly influenced by where you locate your data center. The Chicago area is a critical business market and there are plenty of good reasons to have a data center nearby.

Unfortunately, the fiscal situation in the city, as well as the state of Illinois, has created a situation where massive taxation has been cast upon the data center industry. Taxes include a unique City of Chicago “cloud tax” in excess of 10%.

Nearby Indiana to the Rescue: Only 12 fiber miles away from Chicago’s primary internet point-of-presence, Digital Crossroad’s brand new data center enjoys an advantage that no data center in Chicago or its Illinois-side suburbs can enjoy. Located literally right on the IN/IL state line (Digital Crossroad offers tremendous advantages by being in the much more favorable regulatory and tax environment of Indiana.

The Hoosier Half-Century Tax Holiday: A private/public partnership between the data center industry and the state of Indiana offers a 50-year tax holiday to qualifying data center deployments in the state. Cross the state line into Illinois and you’re looking at the most aggressive taxation environment in the United States for a data center. In Indiana you’ll save significantly on sales tax for your entire kit, as well as on your power consumption, while avoiding Chicago’s punitive “cloud tax” entirely.

Automatic Qualification: Unlike other data center tax relief programs in the region that are written to make it difficult to achieve the desired savings, Indiana’s is much more accessible. With its significant investment in a new data center, campus Digital Crossroad has already qualified for tax savings on behalf of all of their customers.

25%? 40%? How Much Will You Save? Digital Crossroad has created a cost-savings calculator to determine exactly how significant your savings are. Believe it or not, savings of 25% to 40% are typical, and with each refresh of your IT infrastructure to more advanced, increasingly energy-efficient technologies, the more avoiding Illinois’ high sales taxes positively impacts your bottom line.