Apple announces $1 billion expansion at Nevada data centre
Thu 11 May 2017
Apple is planning to spend an extra $1 billion (approx. £780 million) on expanding its Nevada data centre, alongside several further land investment in the area, in a bid to take advantage of the regional tax breaks.
The expansion of the data centre, based at the Reno Technology Park, will double the facility’s size and will provide greater capacity for Apple’s growing iCloud storage services.
According to Apple executive Mike Foulkes, the expansion project will bring hundreds of new jobs in both operations and construction.
The tech giant had originally invested $1 billion to build the Reno facility in 2012. On confirming the project five years ago, Apple was awarded $89 million in state property and tax abatements. With the latest expansion, these benefits are expected to increase even further.
The Reno City Council have also approved an Apple request to construct a $4 million, 27,000 sq.ft shipping and receiving warehouse in downtown Reno – for which the California-based firm could take advantage of a forecasted $6 million in sales tax abatements.
Local governor Brian Sandoval said in a statement on the news: ‘Apple’s decision to increase their local investment by $1 billion is a testament to our successful partnership and a demonstration that the best companies in the world are coming to Nevada, creating hundreds of jobs, investing in our communities and making our state their permanent home.’
However, in opposition City Councilwoman Jenny Brekhus reportedly voted against the downtown Reno warehouse deal, arguing that the tax arrangements are unfair and work in favour of ‘some powerful, well-connected corporations and not the rest of us.’
Reno is quickly becoming a popular tech hub, with many industry leaders expanding their footprint in the area, including Tesla and Switch. Google has also invested in Nevada recently, acquiring land close to Tesla’s giant battery factory, as it looks to bolster its rapidly expanding cloud storage offerings.