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Apple planning US$1b data centre in Nevada

Karen Haslam | June 28, 2012
Apple is planning to invest $1 billion in building a data centre and a business centre in Reno, Nevada.

Apple is planning to invest $1 billion in building a data centre and a business centre in Reno, Nevada.

The local government is said to be offering Apple a $89 million tax break which will apparently reduce the company's tax burden for the project by 79 percent, according to an analysis of the project by Phoenix-based Applied Economics.

If the local governments approve the deal Apple's effective sales tax rate will be less than 1 percent, according to a report.

Part of the tax breaks is a reduction on 85 percent of the personal property tax for 10 to 30 years.

The project will create $343 million in economic impact, according to a study. Some 580 construction jobs will be generated, along with 41 jobs at the data center once it is completed.

Greg Ferraro, who is representing Apple, told county commissioners: "This is the most significant economic news we've had in our region in over 15 years."

Apple also has data centres in Maiden, North Carolina and Newark, California

Apple was criticised in a New York Times report for employing "a handful of employees" at a small office in Reno, Nevada, where the tax rate is zero, to avoid paying California's 8.84 per cent corporate tax rate.

 

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