Developing a master-planned data center campus requires significant capital investment from the private sector for buildings and infrastructure, construction, equipment, and ongoing operational expenses. With this level of investment, significant tax dollars will be generated that can support public safety, infrastructure upgrades, parks improvements, schools, and more.
Independent tax analysis prepared by EY (Ernst & Young) evaluates the potential long-term tax revenues generated by a data center development at Haven Oak Technology Park under current real property, business personal property, and sales and use tax frameworks.
Any model must include a set of assumptions. This model is based upon the current best practices, and, where a range of value may be appropriate, has taken a conservative approach. Any change in those assumptions may change the model. This is the same for any modeling exercise.
Please note that the model for the real property and business personal property taxes contains a series of assumptions, all of which are referenced in the report. To highlight key assumptions,
- Timing of the model provides a 20-year analysis, starting on the first year that a building is operational. It should be noted that the campus is expected to operate beyond 20 years.
- Timing of the model follows the current anticipated load ramp for power, 300 MW delivered in Operational Year 1, 300 MW delivered in Operational Year 2, and 300 MW delivered in Operational Year 3. If power is delivered on a difference schedule, the delivery of tax revenue would adjust.
- The number of buildings associated with each power allocation will depend upon the final building configuration, user, and size and may vary for each operator.
The sales and use tax model is slightly more complicated by the fact that we have to factor the sunset date of 2035 for the state exemption into the model. The model assumes that at Operational Year 6. Depending on when Operational Year 1 occurs, this timing may shift. Additionally, if the state elects to extend, shorten, or change the current exemption, the model would also change.
While precise figures will depend on final buildout and equipment investments, the analysis indicates::
- Hundreds of millions of dollars in real property tax revenue from buildings and other site improvements;
- Sustained business personal property tax value because data center equipment is refreshed on a recurring basis, also totaling hundreds of millions of dollars;
- Additional funding potential for County services, schools, infrastructure, utilities, and other County expenses.
Compared to alternative land uses, Haven Oak Technology Park delivers exceptionally high tax yields with relatively low service demands, particularly for schools, public safety, and general County services.