A major Internet data center developer based in Nevada is expanding into Michigan under tax breaks approved by lawmakers and expected to be signed into law.
The legislation passed last night exempts Las Vegas-based Switch and its clients from paying sales or use taxes on equipment at a planned mega-data center campus in Michigan.
Switch plans to locate a massive data center campus near Grand Rapids, starting inside a pyramid-shaped building that once housed furniture maker Steelcase's research facility. Switch says it will not come to Michigan without the tax incentives.
While supporters say Michigan must level the playing field and compete with other states for the emerging cloud computing industry, critics oppose such targeted tax breaks as unfair and question the budget impact.