THE DATA IS IN: PRINCE GEORGE’S COUNTY IS NOW ONE OF THE BEST PLACES IN THE WORLD FOR DATA CENTERS
With the exponential growth of online and cloud computing, exacerbated by the Covid-19 pandemic and dramatic increases in digital data worldwide, there has never been a time when “Data Centers” have been more in demand. Prince George’s County, Maryland has responded to this demand by aggressively positioning itself to compete for data centers with any other place in the U.S.
By definition, a data center is “a facility that centralizes an organization's shared IT operations and equipment for the purposes of storing, processing, and disseminating data and applications.” However, a data center is far more than that. It is the true lifeline for any business that uses data and/or stores information. And individuals, whether they know it or not, rely on data centers for more of their everyday lives as well.
Data centers come in all shapes and sizes, ranging from a portion of a floor in an office building to a massive free-standing structure with hundreds of thousands of square feet for equipment. In addition to data centers being large in size, they can also have a tremendous effect on the local economy. A complete data center may create over 100-150 jobs paying almost $8 million in total annual salaries. Each year, a single data center could add over $30 million into the local economy while generating over $1 million annually in real and personal property tax revenue. And according to the U.S. Chamber of Commerce, when an average data center is being built, it employs over 1,500 local workers providing over $75 million in wages for those employees. The construction alone produces over $200 million in output for the local economy’s supply chain, while generating almost $10 million in revenue for state and local governments. Most importantly, data centers cost virtually nothing in local services, meaning their tax revenue is available to a jurisdiction to support schools, recreation, and public safety needs.
With the potential of this enormous economic impact, the state of Maryland, and more specifically Prince George’s County, has recently passed new legislation that will make it easier and less expensive for data centers to operate in Prince George’s County, Maryland.
In 2020, the Maryland General Assembly passed and the Governor signed legislation to allow data centers to receive a substantial tax reduction while operating in the state of Maryland. The Data Center Maryland Sales and Use Tax Exemption Program (DCMSUTEP)permits data centers that operate or expand in Maryland to be tax exempt from the state’s 6% sales and use tax for up to 20 years.
Going above and beyond the state’s legislation, Prince George’s County is providing additional incentives to encourage data centers to locate here. At the urging of the Prince George’s County Economic Development Corporation (PGCEDC) Prince George’s County enacted local legislation authorizing the County to negotiate a partial or full reduction in the County’s personal property taxes on data centers. Following that, the County Council adopted legislation that accelerates the permitting process for data centers. This new bill creates a “90-Day-by-Right Review and Approval Process”, reducing the approval processing time from what was over a year, to 90 days.
Thanks to the PGCEDC, the Office of the County Executive and the County Council, Prince George’s County, Maryland is now one of the best places to operate a data center in the United States. Prince George’s County has the land, supportive utilities, and now has a very significant tax incentive program and a streamlined permitting process for data centers. Most importantly, we want your business. For more information about locating your data center in Prince George’s County please contact the Prince George’s County Economic Development Corporation or visit www.pgcedc.com/data-center-sites .