Press Release

QTS Applauds Passage of Tax Incentives for Illinois Data Centers

Jul 1, 2019
3 min read

CHICAGO (July 1, 2019)

QTS Realty Trust (NYSE: QTS), a leading provider of hybrid colocation and mega scale data center solutions, today offered its congratulations to Governor J.B. Pritzker, the Illinois General Assembly and the Illinois Chamber of Commerce for the passage of data center tax incentive legislation that has been advocated by QTS since 2016.

As a leading provider of hybrid colocation and hyperscale data center services in Chicago, QTS has worked closely with the Illinois Chamber of Commerce, state and local officials and economic advisors to pioneer data center tax reform. The new legislation expands Illinois’ tax policy to provide incremental tax incentives that exempt qualifying data centers from state and local sales tax on equipment, such as cooling equipment, servers and storage racks.

As explained in a report recently produced by Mangum Economics for the Illinois Chamber of Commerce, states with data center tax incentives have shown significantly stronger data center growth than surrounding states lacking data center incentives. With the enactment of this legislation, Illinois joins other states with tax incentives specifically targeted at attracting data centers as part of expanded economic development efforts.

This will provide a powerful tool to increase Illinois’ competitiveness and attract new businesses into the state. In addition to providing capital improvements that add to Illinois’ tax base, new data center investment also fuels an on-going demand for data center construction which often uses union labor. This has particular relevance for Illinois, where employment growth in the state’s construction sector has lagged behind the national norm in recent years.

“We are thrilled and grateful to the Illinois legislature and Chamber of Commerce for the opportunity to collaborate and succeed on this mission to accelerate technology investment and innovation in Illinois,” said Chad Williams, Chief Executive Officer, QTS. “This legislation not only benefits data center providers, but also Midwestern customers and the business community at large, as it further establishes Illinois as a key business destination for businesses seeking secure and scalable data center solutions.” 

Located on a 30-acre campus downtown, QTS Chicago represents the transformation of the previous Chicago Sun-Times building into the Company’s state-of-the-art Midwestern hub. The data center is a carrier-neutral facility featuring abundant power and connectivity and is one of three QTS data centers now operating on 100% renewable energy. Customers have access to robust and diverse connectivity solutions, a direct connect solution for AWS, and an additional 125 megawatt in-grid power plant under construction.

About QTS

QTS Realty Trust, Inc. (NYSE: QTS) is a leading provider of data center solutions across a diverse footprint spanning more than 6 million square feet of owned mega scale data center space within North America and Europe. Through its software-defined technology platform, QTS is able to deliver secure, compliant infrastructure solutions, robust connectivity and premium customer service to leading hyperscale technology companies, enterprises, and government entities. Visit QTS at www.qtsdatacenters.com, call toll-free 877.QTS.DATA or follow on Twitter @DataCenters_QTS.

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