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Apple picks N.C. for data center

Posted June 3, 2009

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— Computer maker Apple Inc. plans to locate a $1 billion data center in North Carolina, Gov. Beverly Perdue said Wednesday.

The move came after Perdue signed Senate Bill 575, which modifies the method by which capital-intensive businesses calculate corporate income tax liability in North Carolina.

“North Carolina continues to be a prime location for growing and expanding global technology companies,” Perdue said in a statement. “During these tough economic times, it’s important to make the investments that create jobs in areas that need them the most."

Apple has been rumored to be looking at sites in the western part of the state for an East Coast hub, but Perdue's statement didn't specify a location for the center.

Under the new legislation, a capital-intensive industry must meet investment and wage standards and provide its employees with health insurance in order to use the modified formula for calculating the state corporate income tax. It also must locate in one of the state’s more economically distressed areas.

The Apple facility is expected to employ at least 50 people, and it is expected to contract locally for services like server maintenance and repair, building and ventilation system maintenance, landscaping and security. Officials said spending on those services could range from $5 million to $6 million annually and create up to 250 jobs.

The state Department of Commerce projects that a data center investment of $1 billion would create more than 3,000 jobs in the regional economy, including hundreds of jobs related to construction and others created as a result of economic growth.

“We are very pleased the General Assembly has recognized the role capital-intensive industries play in the state’s economy and their relationship to small businesses in our communities," Commerce Secretary Keith Crisco said in a statement. "Technology-driven projects like this may bring fewer overall jobs than traditional industry, but they have a tremendous economic impact through locally purchased goods and services."

37 Comments

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  • ContinuityMan Jun 4, 2009

    Yay! The Apple Global Transpark! And it's Shovel-Ready(TM), too!

  • james27613 Jun 3, 2009

    Build a new data center ?

    They should put it in RTP, many vacant buildings from IBM and
    the CISCO campus that is empty building.

  • protestthis Jun 3, 2009

    reading some of the comments on this whole board in general makes me amazed as heck that any company in its right mind would want to expand and/or relocate here. If I was a ceo or an investment group reading this whole site - i'd stay as far away from NC as i could ever get.

  • whatusay Jun 3, 2009

    Say it ain't true....giving up millions of dollars in taxes for 50 jobs? Say it ain't true.

  • See Chart Jun 3, 2009

    I guess many of you would prefer that they locate in New Jersey?
    New York and New Jersey adjust their state tax burden readily
    for business.
    Remember when Apple opens up in NC the tech service industry plays follow the leader,this is a big chance for NC to attract more tech support and data support centers.

    The real big costs coming for us all will be health care as
    the aging populations will need more assisted care facilities
    than NC can provide oh yes! and money to pay for them.

  • kcfoxie Jun 3, 2009

    Least I remind any of you that VW picked Tennessee for their new car manufacturing facility opening next year (producing 2012 model vehicles) over NC based solely on taxes and incentives? Yeah, I think we made the right move this time.

  • kcfoxie Jun 3, 2009

    psm5000: As much as I like the idea of Apple going under, it won't happen. They will continue to expand with companies like Google throwing data centers here, don't forget the TARP $52bn SSA Data center opening in durham. We're the new goldmind for fiber (and yet my TW connection is terrible), and if anything there will always be monkeys to install drives, physically move systems... lets not forget building the actual building, etc.

  • tgw Jun 3, 2009

    OUR BLOND GOVERNOR HARD AT WORK!! She's almost as offensive as Comrade Obama. Make me want to throw up !

  • FairPlay Jun 3, 2009

    How Stupid. Only a data center. Why are we giving giant tax breaks and this morning on the news they were saying they would raise taxes on us to save the schools! What a backward state.

  • killerkestrel Jun 3, 2009

    "The Apple facility is expected to employ at least 50 people, and it is expected to contract locally for services like server maintenance and repair, building and ventilation system maintenance, landscaping and security. Officials said spending on those services could range from $5 million to $6 million annually and create up to 250 jobs."

    So $20,000 a job? But what about parts? So most of this work will be done by minimum wage workers?

    And $1 billion investment? How much of this is spent on materials and equipment that comes from elsewhere?

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