Are Washington State Taxes driving Data Center builders out of State?

DataCenterKnowledge has a post on Sabey’s partnership to expand out of the State of Washington.

Sabey Unveils Funding, Expansion Plans

January 8th, 2010 : Rich Miller

Rows of server racks inside the Sabey Corp. Intergate.Columbia data center complex in Wenatchee, Wash. 

Rows of server racks inside the Sabey Corp. Intergate.Columbia data center complex in Wenatchee, Wash.

Sabey Corporation has partnered with National Real Estate Advisors to form a new venture that will expand Sabey’s data center operations beyond its core market in the Pacific northwest, the companies said Thursday.

The new company, Sabey DataCenter Properties, will include Sabey’s existing data center developments. NREA will have a minority equity interest and will invest $100 million, which will be used to support the current portfolio and finance growth in new markets.

Where Sabey is going isn’t stated, but it’s not in the State of Washington.

Sabey is not identifying any of the markets where it may eventually operate data centers. But the company has forged a strong track record in building energy-efficient facilities, and its expansion comes at a time of growing interest in data centers built to the highest efficiency standards.

I’ve written on the past on the change in Washington State Sales Tax being applied to server equipment, and how Windows Azure servers were moved from Quincy, WA to San Antonio by Microsoft.

Aug 05, 2009

Washington State Sales Tax Drives Microsoft Windows Azure Servers to Texas

Mary-Jo Foley at ZDNnet picked up news on Microsoft’s decision to remove USA- Northwest from a deployment choice for Windows Azure.

Tax concerns to push Microsoft Azure cloud hosting out of Washington state

Posted by Mary Jo Foley @ 11:55 am

Microsoft is making preparations to move applications that developers are hosting on its Azure cloud infrastructure out of its Washington state datacenter, due to a change in the tax laws there.

Microsoft warned customers testing their apps on the Azure test release about the planned change earlier this week. Microsoft is readying a migration tool to help testers with the move, company officials said.

Cloud-computing and .Net expert Roger Jennings put together all the various reports and clues into a detailed August 5 post on his OakLeaf Systems blog.

One of the factors that is influencing the data center migration out of the state of Washington are the taxes.  But, with a 2.6 billion budget gap, don’t expect the state to change its taxation.

$2.6 billion gap in state budget prompts Dems to look at taxes

As the Legislature starts work to close a $2.6 billion budget gap, key lawmakers say tax increases may be inevitable. Top Democrats have indicated they'll suspend or modify Initiative 960, which requires a two-thirds legislative majority or voter approval for tax increases.

By Jim Brunner

Seattle Times staff reporter

PREV 1 of 2 NEXT

Enlarge this photo

Related

OLYMPIA — As the Legislature starts work today to close a $2.6 billion budget gap, key lawmakers say tax increases may be inevitable.

To clear the way, top Democrats have indicated they'll suspend or modify Initiative 960, which requires a two-thirds legislative majority or voter approval for tax increases.

But which taxes would be raised and who would pay them is far from clear.

Instead of a general tax increase — such as boosting the state sales tax — some top lawmakers are talking about more targeted approaches, such as extending the sales tax to candy, muffins and bottled water and increasing tobacco taxes.