U.S. Bank Plans $250M Data Center near Minneapolis
- Dec 23, 2016
Chaska, Minn.– Minneapolis-based U.S. Bank recently announced plans to build a $250 million data center in Chaska, in partnership with Dallas-based Stream Data Centers. Subject to Chaska City Council approvals, the company expects construction to begin in the spring of 2017 and to finish by early 2018. The approximately 56,000-square-foot facility will employ about 18 full-time workers.
The Minnesota Department of Employment and Economic Development (DEED) is supporting the project with a grant of $287,000 from the Job Creation Fund. The partnership will receive the funding after meeting its investment and hiring commitments. In addition, the project is entitled to receive sales tax incentives under the state’s data center program.
The city of Chaska plans to approve a tax abatement valued at nearly $548,000 over 20 years to support this project. Additionally, the city is working with GREATER MSP and DEED to secure a $250,000 grant to support $1.13 million in infrastructure improvements at the electric substation that will supply reliable and cost-effective power to the data center.
“Minnesota’s data center industry supports hundreds of jobs statewide,” said DEED Commissioner Shawntera Hardy in prepared remarks. “The U.S. Bank project is a major investment that will strengthen the state’s position as a leader in the data center sector.”
“Ensuring our customer information is securely managed and providing exceptional service delivery are among our highest priorities at U.S. Bank,” added Jeff von Gillern, vice chairman of technology and operations services. “We selected our home market for our new state-of-the-art technology center because the state of Minnesota shares our commitment to customer care and information protection. This new center will employ highly advanced and converged automated infrastructure for our digital and computing needs, leveraging the use of both internal and external cloud services. Cost optimization, flexibility and rapid time to market are key operational tenets for us.”
Since 2012, more than 25 new or refurbished data centers have been completed in Minnesota. Those projects represent a capital investment of more than $1.8 billion and over 2.2 million square feet of added space. Nearly 90 percent of the facilities are in the Twin Cities, which ranks eighth among the nation’s large metropolitan areas for the size of its data processing workforce.
“The U.S. Bank decision to locate a data center in Chaska and make a $250 million capital investment is a testament to our region’s strength as a data centers hub – and will ultimately strengthen the economic vitality of our region,” concluded Michael Langley, CEO of the Minneapolis Saint Paul Regional Economic Development Partnership. “This investment is possible because of the long-term vision created by the state, city and county to attract precisely these kinds of construction projects.”
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