RagingWire Data Centers, the nation’s premier data center provider, announced the company has signed a rare memorandum of understanding (MOU) with the Virginia Economic Development Partnership (VEDP) committing to $150 million in capital investment and the creation of 50 new jobs over the next five years. In consideration for this significant commitment, RagingWire and its customers will be eligible to receive a Virginia sales tax exemption for the purchase of computer equipment and other related data center infrastructure components.
“Our agreement with the VEDP strengthens our commitment to the local business community and encourages companies looking for data center space and colocation in Virginia to consider the many benefits of choosing RagingWire,” said Mark Morrow, chief financial officer at RagingWire. “Equally as important are the tangible financial benefits that our customers gain from this agreement, as it promotes their growth from within our facility.”
This announcement underscores RagingWire’s rapid acceleration in a national expansion plan that includes the launch of their 150,000 square foot data center in Ashburn, Virginia in 2012, the acquisition of an additional 78 acres of land in Ashburn for data center development starting in 2014, and continued expansion of its massive data center campus in Sacramento, California. RagingWire’s Ashburn data center customers can benefit from this expansion by applying for the Virginia sales tax exemption with RagingWire.
“DreamHost delivers innovative and affordable web hosting, cloud storage, and cloud computing services to the world's entrepreneurs and developers. So the Virginia state sales tax exemption that RagingWire has secured for us is a great win for DreamHost – and for developers seeking an on-ramp to the cloud,” said Simon Anderson, CEO of DreamHost, the company behind DreamCompute, the OpenStack-powered public cloud. “We now house over one-quarter of our global infrastructure in RagingWire’s Ashburn data center because of their patented power delivery system and 100% availability. The innovative and forward-thinking RagingWire team goes above and beyond in understanding what drives our business success and that of our customers, and engaging in a true partnership for our mutual success.”
Virginia is consistently recognized as one of the top states for business in the United States. In studies by CNBC, Forbes.com, CEO Magazine, and the Small Business and Entrepreneurship Council, Virginia is recognized for its low cost of doing business, high-quality workforce, and pro-business policies and agencies. Virginia Governor Bob McDonnell helped cut the ribbon on RagingWire’s Ashburn data center and was a strong advocate for the sales tax exemption.
“Virginia has earned a reputation as one of the most business friendly states in the country and our Sales and Use Tax Exemption Program for Data Centers enhances that position,” said Governor McDonnell. “We commend RagingWire and its customers for ‘putting Virginia to work’ by utilizing this important incentive that creates good jobs for our citizens."
In addition to tax incentives for RagingWire’s Virginia data center, the company’s California data center facilities in Sacramento are located in an Enterprise Tax Zone, as defined by the California Trade and Commerce agency. The Sacramento Enterprise Tax Zone designation allows RagingWire and its tenants to take advantage of a variety of incentives: hiring credits, sales/use tax credits, business expense deductions for depreciable equipment, 15-year net loss carryovers, net interest deductions for lenders, and state contract bid preferences.
About RagingWire Data Centers
RagingWire designs, builds, and operates mission critical data centers that deliver high-density power and 100% availability. The company has 650,000 square feet of critical data center infrastructure in Northern California and Ashburn, Virginia and the highest customer loyalty scores in the industry. Their patented power delivery systems and EPA ENERGY STAR rated facilities lead the data center market in reliability and efficiency. With flexible colocation solutions for retail and wholesale buyers, a carrier neutral philosophy, and unmatched customer service, RagingWire meets the needs of top enterprise, Internet, and government organizations. More information is available at www.ragingwire.com.
About DreamHost
DreamHost is a global Web hosting and cloud services provider with over 350,000 customers and 1.2 million blogs, websites and apps hosted. The company offers a wide spectrum of Web hosting and cloud services including Shared Hosting, Virtual Private Servers (VPS), Dedicated Server Hosting, Domain Name Registration, the cloud storage service, DreamObjects, and the cloud computing service DreamCompute. Please visit http://DreamHost.com for more information.
About the Virginia Economic Development Partnership
The Virginia Economic Development Partnership, a marketing organization, was created by the Virginia General Assembly in 1995 to encourage, stimulate, and support the development and expansion of the economy of the Commonwealth. The Partnership is a state authority, which is governed by a 25-member Board of Directors appointed by the Governor and the Virginia General Assembly. To accomplish its objectives of promoting economic expansion within the Commonwealth, the Partnership focuses its efforts on business recruitment, expansion and international trade. VEDP has offices in Virginia, Belgium, Shanghai, Mexico, Japan, India and the United Kingdom