The Development Authority of Douglas County voted during a called meeting Wednesday to approve inducement resolutions for two major data centers locating in Douglas County.
Supernap Atlanta, LLC, initially designated under the code name “Project Hoover” and later formally announced as Switch, will be constructing a data center on Camp Creek Parkway. Additionally, T5 Date Centers, LLC, initially called “Project Madison,” will be constructing a data center on Factory Shoals Road in Douglas County.
Both were unanimously approved Wednesday by the development authority to participate in a 10-year Douglas County Tax Savings Plan. The resolution must now go before the Douglas County Board of Commissioners (BOC) during its Monday work session for discussion and then it is expected to be placed on the agenda for a vote at Tuesday’s meeting.
The 1-million-square-foot Douglas County campus, Supersnap Atlanta, will become the fourth Switch PRIME campus located in the U.S.
Pumphrey said that once the certificate of occupancy kicks in, the county and school system should be receiving $7.9 million each year based on the current millage rates once all three buildings go up.
He explained that the tax incentive is based on the real property — the land and the building — and will be assessed exponentially beginning at year five and increasing each year.
“The equipment — the servers — are considered ‘real property’ and are 100 percent taxable each year,” Pumphrey said.
Gov. Nathan Deal announced last May that Switch, a global technology solutions corporation, will create 65 jobs, and along with its clients, invest $2.5 billion in a Switch PRIME data center in Douglas County. The new Douglas County location will be the highest-rated data center in the Southeast, he said
The company said it would add a minimum of 105 new jobs with wages of at least $25 per hour with an investment of approximately $702.5 million in Douglas County, which will be undertaken in three phases of construction.
Plans are for the company to first build a 300,000 square foot facility in Phase I, followed by a second 300,000 square foot facility and a third 400,000-square-foot facility. Pumphrey said the second and third phases will be built as needed. However, the entire campus site will be developed in Phase I.
Pumphrey said there would be an undetermined number of tenants within Supersnap Atlanta who will be paying property tax with no abatements.
He said the economic impact from the data center with servers is that it requires a constant reinvestment which would likely be replaced in Phases 2 and 3.
Supersnap Atlanta will make a capital investment of at least $293.1 million in Phase I within 24 months and create at least 35 jobs for which employees will be paid a minimum hourly wage of not less than $25.
In Phase II, the company will make a capital investment of at least $102.3 million within five years and create at least 30 additional jobs at a minimum average hourly wage of at least $25 per hour. For Phase II, the company will make a capital investment of at least $102.3 million and create at least 30 jobs with an average wage of $25 per hour.
The second company approved for a tax incentive by the development authority is T5 Data Centers, LLC. This resolution, too, must go before the BOC for approval next week.
T5 is an Atlanta-based data center located in Buckhead, with whom Pumphrey has been working since last summer.
“T5 is not nearly as large as Switch,” he said. “It is set to be a 130,00 square foot facility on 39 acres, catty-cornered from Switch.”
T5 has committed to adding a minimum of 10 new jobs with wages of $28.85 per hour. According to the resolution, the authority will issue bonds for a total principal amount of $60 million for paying or reimbursing the cost of the project.
Pumphrey said that T5 is expected to be constructing one building for its data center operation.
He said the investment is just on “real property.”
“This is a 10 megawatt facility,” Pumphrey said. “at a cost of $15 million per megawatt — a $150 million server investment for their facility. They will have enough land to build additional buildings. The server investment is going directly into the tax digest.”
“We will continue to look forward to that sector of growth,” he said.
Pumphrey said both of the data centers fall within the Sweetwater Master Plan.