Nebraska Data Center Market Update

David BartholomaiEconomic Development

Consultant

NEBRASKA’S OVERALL ECONOMY• Governor Commitment – Jobs and Education• Limited Hangover from Great Recession• Supportive Legislature• Modest Unemployment – 3.9% • Population Resurgence – Retention of Young People• Growing Technology and Export Base• Increasing Business and University Partnerships• Strong Populace Support for Business and Jobs• Talent and Innovation Success• Available Sites

Reliable Low Cost Power• Rates 20% to 40% Below National Average

– All Public Power Keeps Rates Consistently Low

• Reliability to 99.988• Up to 40% Non-Carbon Generation Mix

Credit: Paul Schlattman – ESD Global

Coal 51.4%

Nu-clear30.0%

Land-fill-

Gas0.4%

Natu-ral

Gas0.8%

Hy-dro, 3.2%

Wind14.2%

NPPD - 2012 OPPD - 2014

Generation Mix

Coal54.7%

Nuclear29.2%

Wind4.5%Hydro

2.6%Natural Gas/Oil

1.6%

Power Purchases 7.4%

Diverse & Redundant Fiber• Multiple Tier 1 and Tier 2 long-haul IXC carriers

with diverse routes• 10+ GIG bandwidth capacity on ICB basis• Long-Haul Providers Include:

360Networks

AT&T

CenturyLink

Cogent Communications

Cox Communications

Global Crossing

Iowa Network Services

Iowa Telecom

Level 3 Communications

MCI

NIPCO

Paetec

Pinpoint

SDN Communications

Sprint

Unite Private Network

Verizon

Windstream

XO Communications

• Physical/LogicalTopology Security

• Disaster Prevention

Low risk of threat from natural disasters.

Credit: Paul Schlattman – ESD Global

Major Data Center/IT Intensive CompaniesACI Worldwide

Cabela's (18,000 SF)

CenturyLink (300,000 SF)

ConAgra Foods (60,000 SF)

CoSentry (60,000 SF & 25,000 SF)

CSG Systems

Fidelity Investments (under construction)

First Data (250,000 SF & 50,000 SF)

First National Technology Solutions

(200,000 SF)

Google (200,000 SF)

Wipro / Infocrossing (80,000 SF)

InfoGroup

Interpublic Group

Mutual of Omaha (2)

PayPal

Pinpoint

Scott Data Center (80,000 SF)

Sprint

Union Pacific Headquarters and

Harriman Dispatching Center

USSTRATCOM

Verizon (180,000 SF)

West Corporation

Yahoo! (300,000 SF)

Red denotes data center operations

Data Center – Vendors & Suppliers(not comprehensive list)ADTAhern Fire SystemsAssociated Fire Protection CorpCarrierCiscoCEDCommonwealth ElectricContinental Fire and AlarmControl Management Inc.Dakota SecurityData Power TechnologyDennis Supply CoEaton/PowerwareEcho Electric Anixter - Emerson Network Power

FergusonGraybar - Emerson Network PowerGiestGraingerGreat Plains LocatingInnovative Electrical TechnologyInterstate Power SystemsJohnson Controls IncL3 CommunicationsMainelli MechanicalMcQuay InternationalMechanical SalesMGE UPS SystemsMiller Electric

Morrissey EngineeringNebraska Air FilterNebraska Iowa SupplyNMCPilbrico EngineeringPrairie MechanicalPrecision IndustriesPredictive TechnologyRuss Electric IncSapp BrothersSecurity Equipment Inc (Sei)Superior LightingWater EngineeringWesco

Training Programs

• Green Data Center Management Program• Mission Critical Facilities Program• On-Line Studies• Tailored Programs of Studies• Business Partnerships

Incentives for Data CentersNebraska Advantage Program

Nebraska Advantage ProgramTier 1: $1 million of new investment and 10 new jobs

Tier 2: $3 million of new investment and 30 new jobs

Large Data Center = $200 million of new investment and 30 new jobs

Tier 3: New job creation only - 30 new jobs

Tier 4: $12 million of new investment and 100 new jobs

Tier 5: New investment only - $37 million

Tier 6: $10 million investment with 75 new high paying jobs or $109 million investment and 50 new high paying jobs

Tier 2: $3 Million of New Investment and 30 New Jobs

• Sliding scale compensation tax credit each year for 7 years• 10% investment tax credit for 7 years• 100% sales & use tax refunds on capital purchases• Personal property tax exemption up to 10 years for the following:

– Computer systems and certain peripherals

Tier 2 Large Data Center: $200 Million and 30 New Jobs• All above plus• 10 year exemption on all personal property on site• Use credits for real property tax rebates from state• Sign sequential Tier 5 application at same time

Credit Use

Compensation Credit - Employee WithholdingIncome TaxSales TaxReal Property Tax (Tier 6 and Tier 2 LDC)

Investment Credits - Income TaxSales TaxReal Property Tax (Tier 6 and Tier 2 LDC)

Use of Credits

Tier 5: $37 Million of New Investment and Maintain Jobs

• 100% sales & use tax refunds on project’s capital purchases• Personal property tax exemption up to 10 years for the following:

– Computer systems and peripherals

Customized Job Training Program$500 to $4,000 per employee based on wages, fringe benefits and job quality

Fund reimburses the business up to 50% of the employee’s wages during the training time up to the allotted dollar amount

Positions must be maintained for two years after the training is complete

Site and Building Development FundAvailable to assist companies with infrastructure willing to make investment in Nebraska

Other Local Incentives Available

Nebraska Data Center Sites• Aurora• Fremont• Kearney• Omaha Metro• South Sioux City