Bangalore: Tech giant Apple is planning to invest whooping $1 billion in building a data centre and a business centre in Reno, Nevada.

According to an analysis of the project by Phoenix-based Applied Economics the local government is said to be offering Apple an $89 million tax break which is likely to reduce the company's tax burden for the project by 79 percent. If the local government signs the deal the then Apple's effective sales tax rate will be less than 1percent, according to a report.

“Energy, specifically cheap renewable energy, is the emphasis at Reno Technology Park (RTP), the massive development in Reno, Nevada, where Apple has chosen to build its next data center” reports Datcenter Dynamics.

KC Mares, CTO and partner at Unique Infrastructure Group, the park’s developer, says Google chose Reno technology because it is offering companies access to eight electrical transmission lines with renewable generation on the opposite end of each.

Mares has worked for big multi nationals like Yahoo!, Google, Sun and Exodus Communications whwre she was involved in infrastructure and power purchases for these organizations.

“We’ve had an offer to buy that plant for a while, and we’ve been working out the details of that acquisition,” Mares says.

According to a study the project will create $343 million in economic impact, and around 580 construction jobs will be generated, along with 41 jobs at the data center once it is completed reports IT World.

Greg Ferraro, who is representing Apple told "This is the most significant economic news we've had in our region in over 15 years." Apple also has data centres in Maiden, North Carolina and Newark, California