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Google planning to build $600 million data center in Henderson with help from state tax breaks

Michelle Rindels
Michelle Rindels
EconomyState GovernmentTechnology
A picture of Henderson City Hall Sign

Henderson could be the newest home for search engine behemoth Google.

The board of the Governor’s Office of Economic Development is set to review an application Thursday for Design LLC, a wholly owned subsidiary of Google, that wants to build a data center in the Las Vegas Valley.

The project is expected to create 50 permanent jobs over five years with an average annual wage of $65,000. It’s also expected to yield a capital investment of $300 million for a total "investment" of $600 million in the next decade, and create more than 3,000 temporary construction jobs by the time it opens in late 2020.

Under legislation passed in 2015, data center projects are eligible for tax abatements if they meet certain requirements. Nevada is offering Google abatements worth more than $25 million over 20 years; minus that, the company is expected to pay more than $85 million in state and local taxes over 20 years.

“Without the availability of the abatements offered by the State of Nevada, the state would not have been a competitive location for the project,” the abatement application says.

The total economic impact of the project is projected to be $500 million over 20 years.

Google already has some physical presence in Nevada — it bought 1,200 acres in the Tahoe Reno Industrial Center (TRIC). Reports revealing the purchase last year indicated it could be for a data center or a testing track for autonomous vehicles.

The company also has data centers in at least eight different states and several different countries.

Recent projects that received data center abatements include MECP1 Reno 1, a project of  EdgeCore Data Centers. That project, based at TRIC, represents a $221 million capital investment and was approved for incentives in March.

Switch is also building the world’s largest data center campus at TRIC, and Apple is working on a $1 billion expansion to its Reno data center.

Updated at 9:45 a.m. to reflect that total investment in the data center will be $600 million.


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