Story first appeared in USA TODAY.
Ten of the top 20 most visited websites are based in California, with the remainder in New York, Washington and Georgia.
Is there room in techland for hard-working entrepreneurs from the middle of the USA?
Yes, say members of the close-knit tech community here, best known as the headquarters for the world's largest electronics retailer, Best Buy, retail giant Target and several medical technology companies.
Some 150 young businesses are working to get companies off the ground here, according to tech.mn, a local website which tracks area start-ups.
USA TODAY visited several start-ups here at CoCo, a shared workspace in a bright, open former grain exchange. Allen works from CoCo, as do the founders of Qonqr, a game app planned for iPhone, Android and Windows phones in early 2012.
The game first was seen publicly at the South By Southwest (SXSW) conference in Austin this year; Qonqr was one of 40 companies out of hundreds that applied to present. Even though they're here in Minnesota, there's chances to get out there.
Ben Kazez was a student at the University of Minnesota when he came up with the idea for the Flight Tracker app. Strolling through an airport, he realized there must be a better way to find gate connections and keep abreast of arrivals and departures. His $4.99 app (the pro version is $9.99) gives travelers the lowdown on gate numbers and flight times. More than 1 million downloads have been sold. In November 2010, travel site Expedia bought Mobiata, the company he founded, for an undisclosed fee.
Half of Mobiata's staff is in Ann Arbor, Mich.; the rest is split between Minneapolis and San Francisco. That gives Kazez a good perspective on the Midwest advantage.
Kazez says San Francisco, Boston and Seattle are the big three for tech start-ups. The middle tier: Minneapolis; Austin; Boulder, Colo.; Chicago; and Ann Arbor — home to the University of Michigan, alma mater of Google co-founder Larry Page.
Would you have been an active user of Facebook before it moved from Cambridge, Mass., to California and struck it rich? That question inspires Wahooly, a Minneapolis-based website that marries start-ups with active users. If all goes as planned, new sites get to grow quickly, with help from their readily acquired fan base.
Users who spend a lot of time on the site and exert some online influence get to share in up to 5% of the equity in the firm.
Wahooly works with San Francisco-based social-influence site Klout to spread the word. So far, about 16,000 have signed up to participate, along with 111 companies. Sign-ups close in January.
Some 90% of start-ups will fail.
Gabe Cheifetz left Chicago for the Twin Cities in 2002, a fan of the music scene. He founded several start-ups, then in 2009 moved to CrumplePop, which makes special effects that work with Apple's Final Cut Video editing program. CrumplePop is in a small $725-a-month studio on Minneapolis's south side, next door to a bakery. The four team members work on Macs and have sunlamps on their desks for dark Minnesota winters. They've sold more than 50,000 effects at $75 each in the three years, Cheifetz says.
The Minneapolis advantage: low rent, low cost of living, and the team gets to bike to work — even in the winter.
Jeff Pesek, who runs the tech.mn website, says the difference with a Midwest start-up vs. those in the Silicon Valley is stamina.
Gene Munster, a Piper Jaffray analyst who covers Apple and Google — from Minneapolis — says Chicago, thanks to huge hits such as daily deals leader Groupon and food service company GrubHub, has a more thriving tech scene, but not forever. He says they are emerging, but they're going to give Chicago a good run. They've got more people, but we've got the schools, our people, big companies and a history of innovative thinking.
Showing posts with label Tech Industry. Show all posts
Showing posts with label Tech Industry. Show all posts
Monday, November 28, 2011
Wednesday, October 27, 2010
Outsourcing No Longer ‘Dirty Word’ as Technology Spending Rises
Bloomberg
The Cleveland Police Authority in Northern England is paying Groupe Steria SCA to help manage the control room of the 2,200-strong force, allowing Chief Constable Sean Price to “concentrate on policing.”
The 211 million-euro ($295 million), 10-year contract to take calls, assist in preparing criminal case files and manage payroll, recruitment and expenses became effective Oct. 1. Price and other first-time customers seeking to simplify back-office operations or upgrade rickety computer systems are helping information technology services companies such as Steria, Cap Gemini SA and Cognizant Technology Solutions Corp. grow faster than the economies they serve.
“Outsourcing used to be a bit of a dirty word,” Price said in an interview. “I don’t think that’s the case anymore.”
France’s Cap Gemini and Teaneck, New Jersey-based Cognizant have raised their outlooks this year, while India’s Infosys Technologies Ltd. and Tata Consultancy Services Ltd. have signaled rising demand from corporate clients. The companies are gaining as corporations revive spending postponed by the global economic crisis while also looking to cap costs.
“IT is doing better than the economy,” Francois Enaud, chief executive officer of Velizy, France-based Steria, said in an interview. “The crisis forced companies in many industries to reconsider the way they do business and their cost model.”
About 53 percent of public- and private-sector organizations in Europe surveyed by Gartner Inc. plan to outsource more this year, while 40 percent plan to increase spending on IT services, the research firm said Sept. 7. Gartner also found that 14.7 percent of organizations with IT budgets of less than 1 million euros expressed interest in outsourcing, compared with 6.1 percent last year.
In the Cloud
The recovery in spending has been slower at large corporations, postponing the rebound at companies such as International Business Machines Corp., the world’s largest computer-services provider. The Armonk, New York-based company this month posted its third straight quarterly decline in new contracts. Its services signings fell 7 percent to $11 billion in the third quarter.
“Very large corporate IT projects of the type that IBM would get involved in aren’t recovering to the same extent as smaller pieces of work, which are more significant to smaller companies,” said Gianluca Tramacere, an analyst with Gartner in Milan.
These large contracts have traditionally been multi-year commitments with a fixed base of servers and personnel. While those are harder to come by, smaller companies are increasingly able to outsource some operations.
‘Pay as You Need’
That’s in part thanks to the spread of cloud computing services, which shrink the footprint necessary for upgrades to IT infrastructure by storing data and applications online.
Providers including Steria and Cap Gemini are promoting “pay as you need” cloud-based services, challenging the industry’s use of long-term contracts.
“The cloud should enable entry into these services faster,” for smaller companies, said Patrik Karrberg, a researcher in the London School of Economics’ Information Systems and Innovation Group. “The promise of the cloud is more flexibility.”
That’s helping cloud services grow faster than more traditional IT. Worldwide cloud services revenue is expected to reach $68.3 billion this year, up almost 17 percent from 2009, while overall global IT spending may rise about 4 percent, according to Gartner.
Emerging Markets
Tata Consultancy this month reported a quarter-on-quarter increase in revenue of 12 percent, the biggest jump in more than four years. Infosys raised its full-year revenue forecast to about $6 billion, compared with a July estimate of as much as $5.81 billion. Steria reported an 8 percent gain in third- quarter revenue to 402 million euros.
At Cap Gemini, Europe’s largest IT services provider, second-quarter revenue climbed 1.9 percent to 493 million euros in France and 6.6 percent in Asia, Latin America, and Europe outside of France, the U.K., and the Benelux countries. Sales in the U.K. and Ireland slid almost 9 percent.
Cap Gemini spent 233 million euros for 45 percent of Brazilian provider CPM Braxis in September. India’s HCL Technologies Ltd. and Wipro Ltd. have suggested they may do deals in Europe to expand their services on the continent.
In France, companies are “much more open to considering the outsourcing of non-core business” than before the economic crisis, Steria’s Enaud said.
Pent-Up Demand
Still, demand driving many corporate clients to spend more on their IT systems will eventually slow, some executives said.
“There was a surge in pent-up demand that we saw in the first and second quarter,” Cognizant CEO Francisco D’Souza said.
First-half revenue at Cognizant surged 35 percent to about $2 billion as deferred spending returned, the company said Aug. 3. Demand later in the year is unlikely to be “quite as strong, as we return to a more normal situation,” D’Souza said.
IT providers also face a battle to safeguard revenue from cuts in government spending in U.S. and Europe. In the U.K., the government said last week departments will cut their budgets by an average 19 percent over four years, with police budgets falling by 14 percent.
Longer term, the cost-cutting efforts may help computer services companies, said the LSE’s Karrberg.
“The problem for many governments it that they don’t have enough competent in-house people,” he said. “There will be a response among the providers to create more efficient services, and it’s a big opportunity at the moment.”
At the Cleveland Police Authority, meanwhile, Price is fielding queries from other police departments for the service contract he has with Steria.
“There’s going to be a huge amount of interest in partnerships like this,” he said. “So far we’ve had 29 police forces in England and Wales contact us to find out about what we’re doing.”
The 211 million-euro ($295 million), 10-year contract to take calls, assist in preparing criminal case files and manage payroll, recruitment and expenses became effective Oct. 1. Price and other first-time customers seeking to simplify back-office operations or upgrade rickety computer systems are helping information technology services companies such as Steria, Cap Gemini SA and Cognizant Technology Solutions Corp. grow faster than the economies they serve.
“Outsourcing used to be a bit of a dirty word,” Price said in an interview. “I don’t think that’s the case anymore.”
France’s Cap Gemini and Teaneck, New Jersey-based Cognizant have raised their outlooks this year, while India’s Infosys Technologies Ltd. and Tata Consultancy Services Ltd. have signaled rising demand from corporate clients. The companies are gaining as corporations revive spending postponed by the global economic crisis while also looking to cap costs.
“IT is doing better than the economy,” Francois Enaud, chief executive officer of Velizy, France-based Steria, said in an interview. “The crisis forced companies in many industries to reconsider the way they do business and their cost model.”
About 53 percent of public- and private-sector organizations in Europe surveyed by Gartner Inc. plan to outsource more this year, while 40 percent plan to increase spending on IT services, the research firm said Sept. 7. Gartner also found that 14.7 percent of organizations with IT budgets of less than 1 million euros expressed interest in outsourcing, compared with 6.1 percent last year.
In the Cloud
The recovery in spending has been slower at large corporations, postponing the rebound at companies such as International Business Machines Corp., the world’s largest computer-services provider. The Armonk, New York-based company this month posted its third straight quarterly decline in new contracts. Its services signings fell 7 percent to $11 billion in the third quarter.
“Very large corporate IT projects of the type that IBM would get involved in aren’t recovering to the same extent as smaller pieces of work, which are more significant to smaller companies,” said Gianluca Tramacere, an analyst with Gartner in Milan.
These large contracts have traditionally been multi-year commitments with a fixed base of servers and personnel. While those are harder to come by, smaller companies are increasingly able to outsource some operations.
‘Pay as You Need’
That’s in part thanks to the spread of cloud computing services, which shrink the footprint necessary for upgrades to IT infrastructure by storing data and applications online.
Providers including Steria and Cap Gemini are promoting “pay as you need” cloud-based services, challenging the industry’s use of long-term contracts.
“The cloud should enable entry into these services faster,” for smaller companies, said Patrik Karrberg, a researcher in the London School of Economics’ Information Systems and Innovation Group. “The promise of the cloud is more flexibility.”
That’s helping cloud services grow faster than more traditional IT. Worldwide cloud services revenue is expected to reach $68.3 billion this year, up almost 17 percent from 2009, while overall global IT spending may rise about 4 percent, according to Gartner.
Emerging Markets
Tata Consultancy this month reported a quarter-on-quarter increase in revenue of 12 percent, the biggest jump in more than four years. Infosys raised its full-year revenue forecast to about $6 billion, compared with a July estimate of as much as $5.81 billion. Steria reported an 8 percent gain in third- quarter revenue to 402 million euros.
At Cap Gemini, Europe’s largest IT services provider, second-quarter revenue climbed 1.9 percent to 493 million euros in France and 6.6 percent in Asia, Latin America, and Europe outside of France, the U.K., and the Benelux countries. Sales in the U.K. and Ireland slid almost 9 percent.
Cap Gemini spent 233 million euros for 45 percent of Brazilian provider CPM Braxis in September. India’s HCL Technologies Ltd. and Wipro Ltd. have suggested they may do deals in Europe to expand their services on the continent.
In France, companies are “much more open to considering the outsourcing of non-core business” than before the economic crisis, Steria’s Enaud said.
Pent-Up Demand
Still, demand driving many corporate clients to spend more on their IT systems will eventually slow, some executives said.
“There was a surge in pent-up demand that we saw in the first and second quarter,” Cognizant CEO Francisco D’Souza said.
First-half revenue at Cognizant surged 35 percent to about $2 billion as deferred spending returned, the company said Aug. 3. Demand later in the year is unlikely to be “quite as strong, as we return to a more normal situation,” D’Souza said.
IT providers also face a battle to safeguard revenue from cuts in government spending in U.S. and Europe. In the U.K., the government said last week departments will cut their budgets by an average 19 percent over four years, with police budgets falling by 14 percent.
Longer term, the cost-cutting efforts may help computer services companies, said the LSE’s Karrberg.
“The problem for many governments it that they don’t have enough competent in-house people,” he said. “There will be a response among the providers to create more efficient services, and it’s a big opportunity at the moment.”
At the Cleveland Police Authority, meanwhile, Price is fielding queries from other police departments for the service contract he has with Steria.
“There’s going to be a huge amount of interest in partnerships like this,” he said. “So far we’ve had 29 police forces in England and Wales contact us to find out about what we’re doing.”
Monday, October 4, 2010
Small-Business Owners may need Outside Help with Tech
USA Today
From smartphones to souped-up servers, a plethora of technological tools can help small businesses as they expand. Yet with so many options — and so many business demands that need to be met — technology can be daunting for even the most experienced entrepreneurs.
"It's this feeling that you're falling behind constantly," says Todd Thibodeaux, CEO of the Computing Technology Industry Association, the country's largest IT trade association.
"There is so much change out there," he says, and business owners often have much "fear and frustration" as they try to keep up.
There's the cost: Growing businesses often have to shell out big bucks for equipment that could quickly become obsolete. There's also the time factor: 43% of business owners spend more than two hours a week on technology problems, according to a National Small Business Association (NSBA) survey to be released this week.
In addition, many have the constant worry that pertinent information could accidentally be erased or fall into the wrong hands. Business owners must also be prepared to show that their data weren't changed or corrupted if audited, says Andy Monshaw, an IBM general manager who specializes in servicing small and midsize businesses.
"The big issue in the industry is the ability to respond to audits," he says. "Data protection and data security are very important."
With the rising popularity of LinkedIn, Facebook and Twitter, staking out a place in the social-media world is also an increasingly important part of meeting technological needs, Thibodeaux says. Most small businesses — even dry cleaners and restaurants — should create some sort of plan to "engage" customers, he says.
About one-quarter of small-business owners handle tech support for the entire company themselves, according to the NSBA report. They're taking on duties such as upgrading software, overseeing hacker- and virus-resistant e-mail systems and updating Facebook pages.
Consider seeking help
But IT experts say those already overburdened owners should consider seeking outside assistance.
Small-business owners often launch firms that capitalize on their strengths, whether it's baking pies or doing public relations, says Thomas Clancy, founding partner of IT consulting firm Valiant Technology. "But when it comes to doing technology, that's a separate skill set that goes on top of running a business," he says. "And it's something that many can't wrap their head around."
He says that in their bid for technological expansion, many business owners often get overwhelmed, overextend themselves and overspend.
"People get starry-eyed. They say, 'I'm not going to buy anything refurbished. I'm just going to buy new,' " he says. "And then they go to the Apple Store, and they plunk down the platinum card. Then that credit card bill is due."
He's been contacted by companies that have spent $100,000 on new equipment, only to realize that they can't afford it. They then want to pawn it off on someone else, but often, the equipment has lost half its value.
While there are many trying aspects of tapping into technology, when done right, it can rev up revenue.
Ed Eskew, chief information officer at apparel manufacturer Bernard Chaus, says his firm realized that it needed more detailed data on what was and wasn't selling at department stores, so it asked IBM to implement an improved data-tracking system.
"One of our biggest business challenges was trying to manage our retail point-of-sale information," Eskew says. The company wanted to know what styles were doing well and which weren't so it could respond by ordering more of the popular goods and discounting the duds.
Bar codes make things easier
In the past, Bernard Chaus employees traditionally spoke or e-mailed with department store buyers on a weekly basis to see how clothing was selling. But with an updated bar-code system, the firm now gets information on a daily basis.
"We're able to sort of deep dive under the covers," he says. "Now we've got a sense of what's hot and what's moving, and conversely, we know what's not moving."
He says the company is about to discount unpopular goods — and more quickly replenish the clothing lines that are selling well — "so we don't end up at the end of the season with all this inventory sitting in a store that's not moving."
Technological advances and competitive small business seo programs have helped his firm — and others — take on tough rivals, he says.
"It's made the smaller and midsize companies like (us) better able to compete with the bigger, billion-dollar operation," he says. "It's let us keep our doors open during one of the most competitive retail environments in probably 100 years. So we get to breathe another day."
TIPS ON TECH NEEDS
Talk with other owners: "Join a peer group, a local Chamber of Commerce or clubs in your area," says Thomas Clancy, founding partner of IT consulting firm Valiant Technology. "See how other people are doing it." Also ask those folks for IT staff suggestions. "Referrals are usually a pretty good way to find someone," he says. "That's why it's important to get connected into your local business community."
Go with a pro: Don't hire a tech-savvy college kid, an iPad-loving brother-in-law or the receptionist's boyfriend to tackle tough IT needs, Clancy says. Those without formal training don't have the skills to help a company grow — and if the receptionist gets fired, the company may find itself with a bunch of deleted information, he says.
Do some homework: A firm should do some sleuthing before contracting with an outside IT provider. Find out how long the company has been in business and ask to speak with current customers, says Todd Thibodeaux, CEO of the Computing Technology Industry Association, the country's largest IT trade association. Also, ask about their past "disaster recovery" efforts: "Ask them to think of a situation when their customer's (systems) went down and how fast they got it back up," he says.
Tap into IT's know-how: Disregard the false notion that most IT folks are geeks who only like to tinker with computer code and wire — and bring them into business discussions about forecasting needs. "An IT provider shouldn't just be serving your e-mail and making your printer work," says Clancy. "That's just the most basic level of service, and it's not going to help you grow your business."
Consider more than price:"Ask, 'What kinds of services can I expect?' " says Clancy. "You shouldn't think about price first. First find out what the company can do for you. Be open minded. In the end you may pay 10% more, but you could get 50% more capability."
"It's this feeling that you're falling behind constantly," says Todd Thibodeaux, CEO of the Computing Technology Industry Association, the country's largest IT trade association.
"There is so much change out there," he says, and business owners often have much "fear and frustration" as they try to keep up.
There's the cost: Growing businesses often have to shell out big bucks for equipment that could quickly become obsolete. There's also the time factor: 43% of business owners spend more than two hours a week on technology problems, according to a National Small Business Association (NSBA) survey to be released this week.
In addition, many have the constant worry that pertinent information could accidentally be erased or fall into the wrong hands. Business owners must also be prepared to show that their data weren't changed or corrupted if audited, says Andy Monshaw, an IBM general manager who specializes in servicing small and midsize businesses.
"The big issue in the industry is the ability to respond to audits," he says. "Data protection and data security are very important."
With the rising popularity of LinkedIn, Facebook and Twitter, staking out a place in the social-media world is also an increasingly important part of meeting technological needs, Thibodeaux says. Most small businesses — even dry cleaners and restaurants — should create some sort of plan to "engage" customers, he says.
About one-quarter of small-business owners handle tech support for the entire company themselves, according to the NSBA report. They're taking on duties such as upgrading software, overseeing hacker- and virus-resistant e-mail systems and updating Facebook pages.
Consider seeking help
But IT experts say those already overburdened owners should consider seeking outside assistance.
Small-business owners often launch firms that capitalize on their strengths, whether it's baking pies or doing public relations, says Thomas Clancy, founding partner of IT consulting firm Valiant Technology. "But when it comes to doing technology, that's a separate skill set that goes on top of running a business," he says. "And it's something that many can't wrap their head around."
He says that in their bid for technological expansion, many business owners often get overwhelmed, overextend themselves and overspend.
"People get starry-eyed. They say, 'I'm not going to buy anything refurbished. I'm just going to buy new,' " he says. "And then they go to the Apple Store, and they plunk down the platinum card. Then that credit card bill is due."
He's been contacted by companies that have spent $100,000 on new equipment, only to realize that they can't afford it. They then want to pawn it off on someone else, but often, the equipment has lost half its value.
While there are many trying aspects of tapping into technology, when done right, it can rev up revenue.
Ed Eskew, chief information officer at apparel manufacturer Bernard Chaus, says his firm realized that it needed more detailed data on what was and wasn't selling at department stores, so it asked IBM to implement an improved data-tracking system.
"One of our biggest business challenges was trying to manage our retail point-of-sale information," Eskew says. The company wanted to know what styles were doing well and which weren't so it could respond by ordering more of the popular goods and discounting the duds.
Bar codes make things easier
In the past, Bernard Chaus employees traditionally spoke or e-mailed with department store buyers on a weekly basis to see how clothing was selling. But with an updated bar-code system, the firm now gets information on a daily basis.
"We're able to sort of deep dive under the covers," he says. "Now we've got a sense of what's hot and what's moving, and conversely, we know what's not moving."
He says the company is about to discount unpopular goods — and more quickly replenish the clothing lines that are selling well — "so we don't end up at the end of the season with all this inventory sitting in a store that's not moving."
Technological advances and competitive small business seo programs have helped his firm — and others — take on tough rivals, he says.
"It's made the smaller and midsize companies like (us) better able to compete with the bigger, billion-dollar operation," he says. "It's let us keep our doors open during one of the most competitive retail environments in probably 100 years. So we get to breathe another day."
TIPS ON TECH NEEDS
Talk with other owners: "Join a peer group, a local Chamber of Commerce or clubs in your area," says Thomas Clancy, founding partner of IT consulting firm Valiant Technology. "See how other people are doing it." Also ask those folks for IT staff suggestions. "Referrals are usually a pretty good way to find someone," he says. "That's why it's important to get connected into your local business community."
Go with a pro: Don't hire a tech-savvy college kid, an iPad-loving brother-in-law or the receptionist's boyfriend to tackle tough IT needs, Clancy says. Those without formal training don't have the skills to help a company grow — and if the receptionist gets fired, the company may find itself with a bunch of deleted information, he says.
Do some homework: A firm should do some sleuthing before contracting with an outside IT provider. Find out how long the company has been in business and ask to speak with current customers, says Todd Thibodeaux, CEO of the Computing Technology Industry Association, the country's largest IT trade association. Also, ask about their past "disaster recovery" efforts: "Ask them to think of a situation when their customer's (systems) went down and how fast they got it back up," he says.
Tap into IT's know-how: Disregard the false notion that most IT folks are geeks who only like to tinker with computer code and wire — and bring them into business discussions about forecasting needs. "An IT provider shouldn't just be serving your e-mail and making your printer work," says Clancy. "That's just the most basic level of service, and it's not going to help you grow your business."
Consider more than price:"Ask, 'What kinds of services can I expect?' " says Clancy. "You shouldn't think about price first. First find out what the company can do for you. Be open minded. In the end you may pay 10% more, but you could get 50% more capability."
Tuesday, June 22, 2010
Washington City Tax Breaks may Mean More Tech Growth
Associated Press
QUINCY, Wash. (AP) - This central Washington city known for its agricultural production is fast becoming a high-tech hub, and local officials hope the trend continues with a new tax break intended to lure more technology companies to the area.
Microsoft Corp., Yahoo Inc. and Intuit Inc. already have built data centers in Quincy, lured by available land and low-cost hydropower from the nearby Columbia River. The centers store and process Internet data.
Now Microsoft is working on an expansion, and Sabey Corp. purchased 40 acres last year for construction of a data center of its own.
"What Quincy is known for is amazing agriculture," Gov. Chris Gregoire said Monday at a ceremony to celebrate the growth. "But now it's a new day to offer up a more diverse economy and to bring the data centers here."
Gregoire signed a bill giving technology companies a sales tax break on some equipment if they obtain a building permit during the next year. The city and Port of Quincy also are working to build a recycled water project to provide treated water from the area's food production facilities for use by the data centers for cooling.
The first three data centers alone generated an additional $8 million to $10 million in sales tax revenue, Quincy Mayor Jim Hemberry said. Assessed property values grew from $260 million to more than $1 billion.
The extra revenue from sales taxes helped pay one-time improvements to city streets and parks, he said. The additional property tax revenue helped pay for a several new employees, including a police captain and city engineer, and property taxes were reduced.
"It's been a huge impact for our community and they've been really good neighbors," he said.
Microsoft Corp., Yahoo Inc. and Intuit Inc. already have built data centers in Quincy, lured by available land and low-cost hydropower from the nearby Columbia River. The centers store and process Internet data.
Now Microsoft is working on an expansion, and Sabey Corp. purchased 40 acres last year for construction of a data center of its own.
"What Quincy is known for is amazing agriculture," Gov. Chris Gregoire said Monday at a ceremony to celebrate the growth. "But now it's a new day to offer up a more diverse economy and to bring the data centers here."
Gregoire signed a bill giving technology companies a sales tax break on some equipment if they obtain a building permit during the next year. The city and Port of Quincy also are working to build a recycled water project to provide treated water from the area's food production facilities for use by the data centers for cooling.
The first three data centers alone generated an additional $8 million to $10 million in sales tax revenue, Quincy Mayor Jim Hemberry said. Assessed property values grew from $260 million to more than $1 billion.
The extra revenue from sales taxes helped pay one-time improvements to city streets and parks, he said. The additional property tax revenue helped pay for a several new employees, including a police captain and city engineer, and property taxes were reduced.
"It's been a huge impact for our community and they've been really good neighbors," he said.
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