CoreSite Realty Corporation (NYSE:COR) (the “Company”), a premier provider of secure, reliable, high-performance data center and interconnection solutions in major U.S. metropolitan areas, today announced that its application with the Illinois Data Centers Investment Program has been accepted by the Illinois Department of Commerce and Economic Opportunity and the Company is pursuing a final incentive agreement related to its new ground-up data center development in downtown Chicago.
State of Illinois Data Center Investment Act and CoreSite’s Application
In June 2019, the State of Illinois established a new Data Center Investment Act, led by Governor J.B. Pritzker, legislators and business leaders and organizations. “The establishment of the Data Center Investment Act was a great outcome for the State of Illinois and for data center businesses like CoreSite,” said Matt Gleason, CoreSite’s Vice President and General Manager. “We appreciate the efforts by everyone involved, including the work by the Chamber of Commerce, and the opportunity to be a small part of a great win for the State of Illinois and city of Chicago,” said Gleason. “We’re excited to have our application accepted as we work with the State to finalize our incentive agreement.”
“The Illinois Data Center Investment Act is a great economic development opportunity for Illinois to attract the IT industry and related data center investment. In addition, the investment by CoreSite in Chicago is a great opportunity for CoreSite to leverage its connected-campus strategy, creating a strong ecosystem for enterprises and cloud and network providers to serve their end users in a strategic large US market,” said Erin Guthrie, Acting Director of the Department of Commerce and Economic Opportunity.
CoreSite’s New CH2 Ground-up Data Center Development in Downtown Chicago
CoreSite is building its new data center facility, known as “CH2”, in the heart of downtown Chicago. The Company’s CH2 data center is a purpose-built, ground-up development expected to be a 169,000 square foot facility at full completion. CH2 Phase 1, a 56,000 square foot project, is targeted for completion in the second quarter of 2020.
CH2 is part of a connected campus, leveraging CoreSite’s existing CH1 data center, one of the top interconnected buildings in Chicago. CH2 is positioned to deliver a rich community of –
- content providers,
- network options of over 40+ domestic and international carriers,
- leading cloud service providers with native cloud on-ramps, and
- best-of-breed solution partners
This strong ecosystem is designed to support the digital transformation and hybrid and multi cloud demands of businesses with increasing data environments, high performance needs, growing interoperability demands and a need to be located near the network edge.
CoreSite Requirements for the Data Centers Investment Program
The Investment Program requires CoreSite to achieve the following at its CH2 location –
- Create 20 new full-time equivalent jobs and make a capital investment, together with its customers qualifying investments*, of at least $250 million in a 60-month period, and
- Obtain and maintain the requisite building certification, including, but not limited to, ENERGY STAR, a qualifying environmental-friendly program approved by the Investment Program
*This tax incentive is expected to be extended to CoreSite’s participating customers for buying equipment as part of locating in CoreSite’s qualifying new CH2 data center.
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CoreSite Realty Corporation (NYSE:COR) delivers secure, reliable, high-performance data center and interconnection solutions to a growing customer ecosystem across eight key North American markets. More than 1,350 of the world’s leading enterprises, network operators, cloud providers, and supporting service providers choose CoreSite to connect, protect and optimize their performance-sensitive data, applications and computing workloads. Our scalable, flexible solutions and 450+ dedicated employees consistently deliver unmatched data center options — all of which leads to a best-in-class customer experience and lasting relationships. For more information, visit www.CoreSite.com.
Forward Looking Statements
This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “pro forma,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond CoreSite’s control that may cause actual results to differ significantly from those expressed in any forward-looking statement. These risks include, without limitation: the geographic concentration of the Company’s data centers in certain markets and any adverse developments in local economic conditions or the level of supply of or demand for data center space in these markets; fluctuations in interest rates and increased operating costs; difficulties in identifying properties to acquire and completing acquisitions; significant industry competition, including indirect competition from cloud service providers; failure to obtain necessary outside financing; the ability to service existing debt; the failure to qualify or maintain its status as a REIT (“real estate investment trust”); financial market fluctuations; changes in real estate and zoning laws and increases in real property tax rates; and other factors affecting the real estate industry generally. All forward-looking statements reflect the Company’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in its most recent annual report on Form 10-K, and other risks described in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission.