H5 Data Centers’ Cleveland data centre to qualify for the State of Ohio’s tax abatement program



Cleveland, Ohio

In 2014, the State of Ohio modified an existing statute to allow the sales tax exemption to extend to qualifying data centre owners and to customers of qualifying data centre locations.

H5 Data Centers recently announced that its data centre at 1625 Rockwell Avenue has qualified for the State of Ohio’s data centre sales tax abatement program.

All H5 Data Centers’ customers at the downtown Cleveland data centre can be eligible for 100% sales and use tax abatement from the State of Ohio on all eligible data centre equipment such as servers, routers and storage devices.

Final approval of the tax exemption for any individual organization at the data centre is contingent upon the approval of the Ohio Tax Credit Authority.

H5 Data Centers and its customers have now qualified by investing more than $100 million and exceeding the employment and payroll requirements.

“Qualifying is a great opportunity for our customers to significantly lower their total cost of ownership for IT infrastructure,” said Josh Simms, CEO of H5 Data Centers.

“The State of Ohio passed an excellent program, through efforts of JobsOhio, that’s accessible to organisations large and small.

“A typical IT requirement in Cleveland can avoid paying sales taxes of approximately eight percent (8%), which can be the equivalent of several years of free rent.”

The company’s Cleveland data centre spans 351,000 sqf, is Tier III designed and has 100% sales tax abatement.

Elsewhere, H5 Data Centers announced the expansion of Hurricane Electric to its data centre facility in Cleveland, Ohio last year.

The company said that Hurricane Electric’s new Point of Presence at H5 Data Centers’ Cleveland colocation facility is set to offer cloud service providers with IP connectivity services on one, ten or 100 Gigabit Ethernet ports.