Greater Richmond,

“We evaluated numerous locations when deciding where to build our new data center. Greater Richmond provided the right combination of access to talent and infrastructure, a highly favorable business climate, and convenient location. Virginia’s state and municipal governments are great partners for any business looking to grow.”

Rob Alexander, Chief Information Officer of Capital One Financial Corp.

State colleges Virginia has the 2nd Dominion powers produce 7,500+ highest concentration more than 6 million computer and IT of tech workers per sq.ft. of data center graduates each year capita in the U.S. facilities in Virginia WHY GREATER RICHMOND?

Low Costs, High Volume Safe Environment Tax Exemptions & Exceptions Moderate wages, a low tax burden, competi- Greater Richmond’s moderate climate and Virginia offers a tax exemption from the Retail tive real estate and low electricity rates make central East Coast location results in very low Sales and Use tax for computer equipment the Richmond area affordable. A talented risk for most naturally occurring disasters. bought or leased by June 30, 2020 for use in labor pool, a stable, business-friendly govern- The region has a low incidence of hurricane data centers. Additionally, localities in Greater ment and a central location with unparalleled damage, tornadoes, floods, earthquakes, Richmond have special reduced property tax infrastructure make Richmond a superior damaging hail and disruptive winter storms. rates for computer equipment. value. Richmond is also located 50 miles outside of the Washington, D.C. nuclear blast zone.

KEY DATA CENTERS Below is a representative list of data centers in the . A wide range of companies choose Greater Richmond for their data storage needs, from large colocation operations and Fortune 500 companies to small businesses.

Capital One Financial Corp. Financial services Conquest Graphics Online discount printing CTSI (Commonwealth Technical Services, Inc.) Colocation center Federal Reserve Bank of Richmond Reserve bank GWeb Data Center Colocation center Level 3 Networking solutions Northrop Grumman Government contracting Peak10 Colocation center QTS 1.3 million-square-foot colocation center Windstream (Formerly PAETEC/Cavalier) Colocation center

S T Q sy te ur co GROWING BUSINESS oto Ph With an already impressive concentration of data storage in the Richmond area, Capital One Financial Corporation made the decision to reinvest in Capital One the region with the 2012 announcement of a new $150 million data center opened a to accommodate growth and recent acquisitions. Capital One was awarded $150 million a $500,000 grant from the Commonwealth’s Development Opportunity Fund data center and will qualify for funding through the Virginia Jobs Investment Program to in Chester- support recruitment, training and retraining activities. The company will also field. be eligible for a sales tax exemption on data center computer equipment. QTS purchased a former semiconductor manufacturing plant in 2010 and converted it into a colocation data center. The company will invest up to $110 million once all project phases are complete. Features of the project include: n One of the largest data center campuses in the world at 1.3 million sq.ft. n Two on-site Dominion Power substations provide over 100 Megawatts of power each fed into the facility by two diverse paths n Meets Department of Defense anti-terrorism standards, with multiple levels of physical security including ballisticly reinforced buildings, biometric verification systems and thermal, infrared imaging and night vision cameras Pre-selected Dominion certified Large General Service Rate Comparison sites are located throughout Typical cust. using 1,000kW demand and 650,000kWh/mo. usage the region, identified as ideal data center locations by 10 Dominion Power 9.4¢/kWh Average annual wages for 8 8.1¢/kWh computer and mathematical occupations are on par with the 6.6¢/kWh^ 6 national average and about 20 percent lower than in the Wash- 5.2¢/kWh* ington, D.C. . vg.

4 vg. Va vg. Total employment is more 2 than 660,000 in the Richmond metro area, including more

eer Group A than 18,000 working in East Coast A National A Southeast P Greater Richmond, 0 computer occupations * DVP bill: Rates effective Jan. 1, 2017. Includes interim fuel factor reduction and four generation rider adjustments. ^ Southeast peers include: Ala., Fla., Ga., Ken., Miss. and N.C. Source: Edison Electric Institute, Typical Bills and Average Rates Report: Winter 2017. The Richmond Region was LOW ELECTRIC RATES, RELIABLE SOURCE named one of the top cities for creatives by Thrillist Electric service in the Richmond area is provided by Dominion Virginia Power. Dominion understands the needs of data center customers and is ready to partner with businesses to provide consistent, high-quality power. Richmond Region is connected n Rates for industrial customers are more than 30 percent below the to N. Virginia with “dark fiber” national average, at 5.7 cents/kWh. giving companies the ability to n Dominion offers consistent, highly reliable service. The 2016 access data centers at a much reliability rate is 99.98 percent. faster and more affordable way n High-voltage delivery system is designed to accommodate large blocks of load quickly and efficiently. Virginia has been named n Half of the United States’ internet traffic runs through data centers a top state to do business by powered by Dominion. Forbes and CBNC on several occasions INDUSTRY INCENTIVES Below is a sampling of available incentives that may apply to data center projects. Contact the Greater Richmond Partnership, Inc. for further information about additional incentive opportunities.

Tax exemption from the Retail Sales and Use tax for eligible computer equipment Tax Exemption for Computer Equipment for use in data centers Assists and encourages companies to invest and to provide new employment Virginia Economic Development Incentive Grant opportunities Supports the creation of new jobs and investment and helps businesses train Virginia Jobs Investment Program new and existing workers A “deal closing” fund to be employed at the Governor’s discretion to secure a Commonwealth’s Development Opportunity Fund company location or expansion in Virginia 100% Capital Gains Tax Exclusion for Investors and Provides a 100% capital gains tax exclusion for founders of and investors in high Founders technology start-up companies The recently decreased the property tax rate on computer and related Henrico County Data Center Tax Reduction equipment for data centers to $0.40 per $100 from $3.50 per $100, an 89% cut WHY GREATER RICHMOND FOR YOUR BUSINESS? Richmond is the capital of Virginia, the center of commerce, government and academic endeavors: n Home to 8 Fortune 500 headquarters n Population of nearly 1.3 million n Diverse local economy n Located at the mid-point of the East Coast, less than 100 miles from Washington, D.C., with more than 45 percent of the nation’s consumers within an 11-hour driving radius n Excellent transportation network with rail, air, and port service n Nearly 30 colleges and universities with almost 80,000 stu- Richmond dents and more than 16,000 degrees conferred annually n Virginia is a right-to-work state with moderate wages, low levels of unionization, and Unemployment and Workers’ Compensation costs among the lowest in the U.S.

Top 10 Top 10 Best Big Mid-Sized Best States City Job American Cities for Business Markets - Forbes, of the Future - ZipRecruiter, 2015 - fDi Magazine, 2015 2015

BUSINESS CLUSTERS This Data Centers cluster brochure is part of a library of information. Other cluster and specialty brochures include:

Corporate Information Finance & Advanced Food & BioScience Supply Chain Services Technology Insurance Manufacturing Beverage

901 East Byrd Street | Suite 801 | Richmond, VA 23219 | 804 643 3227 | grpva.com The Greater Richmond Partnership, Inc., is the regional economic development group representing the City of Richmond and the Counties of Chesterfield, Hanover and Henrico. We offer site location assistance and other services to domestic and foreign companies planning new or expanded facilities.

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