Apple Wins North Carolina Tax Break For $1 Billion Data Center

A North Carolina county and town have agreed to give Apple Inc. (AAPL) tax incentives worth $46 million over the next decade if the consumer tech giant builds a data center in the area.

The decision Monday helps spur Apple’s plans to expand its network of data centers, which are warehouse-sized buildings that house vast numbers of giant computers known as servers. Data centers are usually used to manage the flow of Internet traffic. In Apple’s case, the Maiden data center could be used to bolster its iTunes music store business.

“We’re looking forward to building a new data in North Carolina,” an Apple spokesman said.

Apple has already agreed to invest $1 billion in the structure in Maiden, which is about 30 miles northwest of Charlotte, according to the agreement. If Apple invests an additional $1 billion into the data center, the county and town will provide another $20.7 million in incentives over another 10-year period.

“There is no commitment beyond the billion dollars,” said Scott Millar, president of the Catawba County Economic Development Corp.

Apple shares are up 1.7% to $136.25.