H5 Data Centers files dispute claim towards Grant County over $116.7m 2018 data centre tax assessment



H5 Data Centers' Quincy data centre facility

H5 Data Centers has filed a dispute claim towards Grant County, Washington over its 2018 tax assessment, with the claim that Grant County overvalued the company’s data centre property by more than $80m.

It was mentioned that in 2018, the Grant County Assessor’s office valued H5 Data Center’s Quincy data centre facility at $116.7m.

However, the company, which owns a number of data centres across the U.S., paid $36.1m to acquire the property from Quincy data centres in July 2018.

Data Economy reached out to H5 Data Centers for comment on the matter, to which a spokesperson responded stating that the procedure is really just the normal process in Washington for disputing the assessed value of real estate. 

“H5 purchased the Quincy data centre for just over $36m and the County had a previously-assessed value much, much higher than that,” said the spokesperson. 

“To acquire the data centre, H5 went through a competitive bidding process to buy the data centre and ultimately we think the assessed value should be based on the market.”

H5 Data Centers opposes that purchase price, adding that the Grant County’s assessment does not reflect the real value of the data centre.

As a result, the company is asking for a $450,000 refund on its $1.3m 2018 property tax bill.


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“The Grant County Assessor appraised the subject property on an erroneous basis, resulting in a taxable assessed value that exceeded the subject property’s market value on January 1, 2017,” Garvey Barer, H5’s Seattle-based attorney, wrote in a filing with the Douglas County Superior Court dated June 24.

“Grant County’s action in collecting taxes based upon the illegal, erroneous and excessive assessments violates the property tax provisions [of Washington state law], and the equal protection requirements of the Washington and United States constitutions.”

Elsewhere two months ago, H5 Data Centers announced a 25,000 sq ft expansion of its Phoenix colocation facility in Chandler, Arizona.

The company revealed that the second phase development at the 180,000 sq ft data centre facility adds infrastructure capacity to the data centre campus.

The expansion is also part of a broader commitment H5 Data Centers has made to its Phoenix customers and the growing demand in Arizona, and the company has revealed that the project will be complete later this year.