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New Tax Incentives Drive “Optimism” in Chicago’s Data Center Market
The nation’s fourth largest data center market in terms of capacity, Chicago is roughly in the middle among the leading markets when it comes to vacancy. However, in its latest report on the data center sector, CBRE notes that Chicago’s vacancy rate has risen 320 basis points year over year to 14.1%, as larger requirements have gone to other markets.
Those larger requirements may soon have more reason to choose the Chicago region, though. CBRE notes that the state of Illinois has approved a new tax-incentive plan to drive data center development.
The plan focuses on tax exemptions for data center equipment over a 10-year period, with a minimum investment of $250 million in the facility and the creation of 20 full-time jobs.
“The combination of the new legislation and current development is creating optimism for larger requirements in Chicago,” according to CBRE’s report.
Pictured: A data center in Elk Grove Village, IL.
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