Microsoft following Apple’s lead with Phoenix data center

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Feb 20, 2015, 10:50am MST  Mike Sunnucks Senior Reporter- Phoenix Business Journal

Microsoft could land big data center in Phoenix

Microsoft Corp. could locate a large new data center in Phoenix.

A commercial real estate official said the Microsoft data center could be landing at Union Hills Drive near Interstate 17.

The project could total as much as 575,000 square feet and the transaction may be completed via private equity firms and other data center entities even though it will be Microsoft operations, according to the industry executive who asked not to be named.

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Another commercial real estate official also said there is also a large unnamed user looking for data center space totaling as much as 300,000 square feet in the East Valley.

An Arizona legislator advocating changes to the state’s tax benefits for the data industry also says Microsoft (NYSE: MSFT) is looking at Phoenix-area locations.

State. Sen. Jeff Dial, R-Chandler, says Microsoft is one of the technology companies advocating adjustments to Arizona data center tax breaks created in 2013.

Dial has introduced a data center proposal amending 10- and 20-year tax breaks on equipment. He said Microsoft has said the changes and a favorable tax climate would help the chances of the Redmond, Washington-based company landing in Arizona.

A Microsoft representative at the Arizona Capitol declined comment. A Microsoft spokesperson also would not say much about a Phoenix center.

“As demand grows for our cloud services, Microsoft is anticipating growth in its cloud infrastructure and we are continuously exploring new potential data center locations across the world. We have nothing to announce today regarding new facilities,” the spokesperson said.

Microsoft has more than 100 data centers worldwide including Chicago, Des Moines, Iowa, San Antonio, Texas, Quincy, Washington and Cheyenne, Wyoming.

The possible Microsoft data center comes as Apple Inc. (Nasdaq: AAPL) plans a $2 billion,150-worker command and data center in Mesa.

Apple could also qualify for the data center tax breaks and other incentives.

Mike Sunnucks writes about residential and commercial real estate, government, law, sports business and workplace issues.








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