The project involved building a 190,000-SF tier III data center in suburban Minneapolis. The facility cost approximately $124 million to build and contained multiple backup and redundant systems to minimize the risk of damage to the computers housed. This included an excess capacity of water-cooled air conditioners, electrical generators, uninterrupted power supply systems, power management and controls, exterior wind barriers, and multiple roof layers. Our cost segregation engineers were engaged to analyze the development and conducted a detailed inspection of the completed space. By engaging our Cost Segregation team, this client was able to assign $84 million to a 5-year tax depreciation life. As compared to putting the entire construction cost into a 39-year life, this created a present value benefit of more than $16 million of which nearly $6 million was realized in the first subsequent tax filing.
2000 Corporate Ridge, Suite 230
Tysons, VA 22102