Old MacDonald Had a Server Farm: States Scramble to Lure, Then Tax, Rapidly Evolving Aspect of Information Technology

Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...

As instantaneous computing capabilities expand, server farms—also known as “darkened” data centers—are becoming critical links in the technology supply chain. The economy's growing reliance on these tools creates a need for tax advisors to understand the business and tax issues faced by taxpayers across various industries. In this article, Jennifer Jensen of PricewaterhouseCoopers provides an overview of server farm technology and the general trends in state tax policy towards the industry.