Mesa Lands Google Data Center; Here’s A Look At The Deal
After about a year of negotiations, Mesa leaders will vote Monday on a development agreement that would bring a Google data center to the city’s Elliot Road Technology Corridor.
If approved, construction is expected to begin within five years.
The proposal includes a property tax breakof $16 million over 25 years, although the city estimates Google operations would still generate some $61 million in that time.
Five other data centers, including Apple, operate or are planned in southeast Mesa, where the city has invested to create a tech corridor.
Arizona has seen a number of data centers in recent years, including Microsoft’s purchase of three large parcels in Goodyear and El Mirage for data centers.
Mesa could offer no estimate on the number of jobs that would be created, although the city’s economic development director William Jabjiniak said they would include such jobs as systems administrators, technicians, facilities employees and support services.
A presentation to the City Council this week noted the jobs would pay an average of at least $65,000 annually.
Data centers aren’t known for being large employment hubs as they are often highly automated and require few people to operate. Mesa officials have previously said data centers could spur other tech companies to come to the area.
A closer look at the deal
Mesa is offering a property-tax break in which Google would pay nearly $33 million instead of an estimated $48.9 million in property taxes over 25 years, according to a city document.
The data center would bring in more money than the current property taxes collected on the 186 acres of farmland at the northwest corner of Elliot and Sossaman Road, which the city pegs at about $3,600 annually.
Mesa also anticipates receiving $28.1 million from electricity sales tax, construction sales tax and personal property tax revenues over 25 years.
When would it open?
The outline of the deal presented to council shows building in three phases, with the first 250,000 square feet in place by July 2025.
Google would spend $1 billion to build 750,000 square feet by July 2029.
How much water will it use? The city will initially provide nearly 1 million gallons per day to the Google facility, which could increase to nearly 4 million per day if Google meets expected development milestones, according to the proposed deal.
Wright said the city would not have set these water commitments if it was not confident that it could meet them.