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facilities in Milwaukee.Haider,who was look- to secure state grants and working cioseq w...
<br /> ing for a more rewarding career after 16 years Urban Organics on the building sale and per- cally needed for traditional fanning. lvomhol(gM40umals.com 1 ebw)Zoo-zw,
<br /> DATA -ENTERS: Big MN companies have built them here, but developers are left waiting for tenants
<br /> FROM PAGE 1 states because of its low There's still upside for the data-center mar- million, 24,000-square-foot facility in Duluth
<br /> risk of natural disasters and ket in the Turin Cities, said Mike Brown, a by Cedar Rapids,Iowa-based Involta.
<br /> on the farmland it had picked for a site. " E. chilly climate, which helps spokesman for Greater MSP. "The data-center incentive thresholds are
<br /> "A lot of our potential tenants were look- cool sensitive equipment. There have been about three smaller data- kind of on the high side and those projects just
<br /> ing for an existing building where they could Several Fortune 500 com- center deals that Greater MSP was involved take longer to complete.I think there will be
<br /> occupy it quick and at a lower price," said panes already have data with in the past year,but none qualified for the some of those coming down the road,"Brown
<br /> Five 9s CEO Doug Hollidge. "We listened to centers here, especially in tax breaks,Brown said.Those projects includ- said.
<br /> the market and transitioned to putting an health care, banking and ed a$25.7 million,33,000-square-foot project
<br /> 87,000-squafe-f0ot building under contract." retail industries, which by Allina Health System in Anoka and an$11 sblack@bizjoumals.com 1(612)288-2103
<br /> Itis now marketing space in a formerTaystee Peterson helps prove the reliability
<br /> bakery distribution center in Eagan.By using of the area as a data center
<br /> an existin
<br /> `-`g bu>jdin g,Frve 1s-could lower asking hub.Minnetonka-based UnitedHealth Group
<br /> rents from$28 to$14 per square foot per,year. Inc.and Minneapolis-based Target Corp.built
<br /> The other two projects still waiting for ten- new data centers in the West Metro in 2010 be-
<br /> ants to start or expand are a data center in fore the data-center economic-development
<br /> Chaska proposed by M.A.Mortenson Co.and law passed.
<br /> a building in Washington County that startup
<br /> firm IronGate Data Centers plans to convert Tax break threshold too high?
<br /> into a data facility. The data-center tax breaks are helpful, but MINNEAPOLIS Ir ST.PAUL
<br /> Economic development boosters envi- not game changing,said Dan Peterson,a bro-
<br /> BUSINESS JOURNAL
<br /> sioned the data-center tax breaks would land ker at Colliers International I Minneapolis-St.
<br /> deals that add millions of investment to the Paul and a specialist in the data-center market.
<br /> state.Data centers are expensive to build and "With at least 13 states with similar incen-
<br /> equip, with price tags reaching $400 to $700 tives, it's really the price of admission these
<br /> per square foot. They dont usually generate days for states to have incentives like these
<br /> a lot of jobs (a staff of 30 can often manage to attract data-center development," said EXECUTIVE
<br /> a 100,000-square-foot facility), but they pay Peterson, who is marketing a 12-acre site
<br /> property taxes and consume a lot of energy in Chaska where Golden Valley-based M. A. i
<br /> sold by local utilities. Mortenson has proposed a 125,000-square- I
<br /> There's been a national boost in demand for foot data center.
<br /> data-center space as more and more compa- The Twin Cities is underserved for data-cen-
<br /> ' ,
<br /> nies store their information off-site and turn ter space and has been pegged as an emerg- L"
<br /> to cloud-based data storage.The explosion of ing market in the sector by national players, You won'tto miss our - of
<br /> smartphones also is driving demand. Peterson said."Users are swirling...but we're Year awards luncheon where we w 11 celebrate our 2013
<br /> Minnesota has an advantage over some not seeing things land quite yet." I The Minnesota High Tech Association has honoree • recognize their professional
<br /> discussed trying to amend the 2011 law to get • personal _•
<br /> ication to the community.This event is an
<br /> WHAT'S A DATA CENTER? some of the thresholds for the tax breaks low- annual sell out, ' get your •
<br /> A data center is a facility exclusively built or ered, which could help the incentives match
<br /> 0011M
<br /> renovated to house computer,telecommunications up with some of the phased developments thatTuesday,, February
<br /> and electronic storage systems.It is typically in have been proposed,Peterson said.
<br /> an expensive,reinforced building,with redundant One such phased project is by Minneapolis- e
<br /> power supplies and beefed up environmental based IronGate Data Centers,led by developer MINNEAPOLIS
<br /> controls and security. Ned Abdul.IronGate owns an 85,000-square-
<br /> foot facility in Washington County and a
<br /> the 2013
<br /> Demand drivers: 25,000-square-foot facility in Hennepin for ' publication where
<br /> Growth of cloud-based IT storage and smartphone County. (It doesn't disclose the exact locations Executive of •_ announced!
<br /> use;ongoing concern over disruptions in business to maximize privacy.)
<br /> due to natural disasters IronGate received some recent coverage
<br /> for a 270,000-square-foot expansion it an- For more Information, go to:
<br /> A few large data center proposals: nounced for the Washington County site,but
<br /> •M.A.Mortenson Co.,Chaska,marketing 125,000 it wont break ground on that until it lands
<br /> square feet of new construction one of the 100,000-square-foot users from the event,
<br /> •Five 9s Digital,Eagan,marketing a East Coast that are looking in the market,said ' ' ' ' " '
<br /> ring the 187,000-square-foot renovation of a former bakery Rory Johnson, president of IronGate. So far, call Kathy Robideau
<br /> warehouse IronGate's only deal is for an undisclosed ten-
<br /> IronGate Data Centers,somewhere in ant that is leasing about 2,000 square feet. SPONSORED _
<br /> Washington County,plans to renovate an Greater MSP, the regional economic devel-
<br /> 85,000-square-foot industrial building and is opment agency,worked with IronGate to pro-
<br /> marketing 270,000 square feet of new space A vide information about incentives and to help us • •
<br /> get the word out about its projects.
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<br /> Digital People • rn 73.5747
<br /> �' 1 Hunter Hamilton I pro Staff I Ware
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