Las Vegas-based Switch seeks tax breaks for expansion in Michigan

By Daniel Rothberg

Tuesday, Nov. 17, 2015 | 1:10 p.m.

Las Vegas-based Switch, which runs top-tier data centers in the valley and is building a large center in Reno, is planning a cross-country expansion — a $5 billion investment in western Michigan.

Pending approval of tax breaks in Michigan, Switch plans to build a 2 million-square-foot data center south of Grand Rapids.

It would be the largest data center in the eastern United States.

Switch’s first out-of-state expansion would allow the company to offer existing clients geographic redundancy and provide new clients with national connectivity, according to a company news release. Switch has attracted corporate clients such as JP Morgan Chase, Boeing, Intel, Amazon and Google.

The $5 billion investment announced by Switch comprises capital investments and client investments. The company is waiting to finalize its Michigan plans until the state’s legislature considers bills offering property, sales and use tax breaks that Switch says are available to data centers in other states.

Adam Kramer, the company’s executive vice president of strategy, said the Michigan expansion would benefit Nevada.

“Nevada is and will always be our home,” Kramer said. “As our global image continues to grow, it shines a brighter spotlight on Nevada.”

Switch’s news release said inland locations, such as those in Nevada and Michigan, are good for data centers because they can provide fast service to major markets without the risk of coastal natural disasters, such as hurricanes.

Las Vegas provides high-speed service to Los Angeles and San Francisco. The Michigan center would provide similarly fast connectivity to Chicago and New York, according to the news releases.

“Switch’s enterprise business clients will collectively place billions of dollars of equipment at these selected prime hubs, which is why geographic safety is critical,” the release said.