Comment by marcosdumay
6 hours ago
> Data centers are a net negative wherever they are.
They really shouldn't be.
There is a need for them and they aren't inherently damaging. There's no reason they can't be placed under some environmental regulations that cancel all their negatives, at least on some places. And they would still pay taxes.
But no, datacenter owners are using their connections to remove any regulation instead.
Obviously the solution is to tax them instead of ban them so they end up dispersing income to the surrounding areas. The entire point though is that they won't get built where they are taxed, and eventually, through regulatory capture or governance capture, they'll get built without having to compensate for their exteralities.
The cynicism of residents is reasonable. They've have to be highly educated to actually understand the implications of what they're doing and how that revenue can be distributed. America's decline lends itself toward small-town corruption, where patronage is more important than communitarianism, due to large and accelerating net worth inequality, and an economy where outcomes are based on inheritance over labor.
This explains the logic behind an outright ban. You don't have to be vigilant about corruption and the principle-agent problem if the thing is just banned.
>The entire point though is that they won't get built where they are taxed
I dont think this is entirely true. Maybe not the first wave of data centers, but there are a lot of factors that go into the cost calc and its possible that it would still be worth it to build them even if taxed.
He's not saying it's economically unfeasible to build where taxed. He's saying they'll simply build elsewhere where they won't be taxed.
About a decade ago, a bunch of data center companies got fantastic deals with my city (low/no tax). People are pretty upset about it. A few years in there was a report on how many people they employeed. I think combined it was under 10 who lived in the area.
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Unfortunately it’s a race to the bottom in most of America: If you pass such regulations locally or in your state, the data centers will simply choose to not build in your area of authority (county/state). Unless we were to pass sweeping, nation-wide regulations (which this administration is aggressively against because they believe we are in an AI arms race with China), those regulations/bans just drive the data centers elsewhere.
Maine obviously wouldn't have a problem with that, this law indicates they want them somewhere other than Maine. Environmental regulations that are as good as a ban seem far preferable to an outright ban, IMO. There's a large segment of the population that see outright bans as oppressive but support environmental regulations.
>Environmental regulations that are as good as a ban seem far preferable to an outright ban, IMO. There's a large segment of the population that see outright bans as oppressive but support environmental regulations.
So basically steal legitimacy from real environmentalists by applying their label to something that's not really motivated by environmentalism but can be construed that way?
"They don't actually want what I'm selling so I'm gonna dress it up as something else, they'll never know"
AreWeTheBaddies.jpg
The other problem you're gonna have is that this isn't an original thought. You're at least 20yr late to the party. So, so, so much absolute garbage has sailed under the flag of environmentalism that the public is starting to be more critical (see for example the kerfuffle over wind turbines off Rhode Island) and it's not unforeseeable that eventually the environmentalists are gonna have some sort of purge or reformation or reversion to more traditional environmentalism and serving corporate interests in order to reclaim some lost respect/legitimacy. Trying to sail "obviously not primarily about the environment" stuff under the flag of environmentalism is only gonna hasten that.
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But people probably wouldn’t have a problem with them building a data center in central Aroostook. Nobody making these regulations wants to simply stop data centers from being built anywhere— they’re trying to stop people from building them where it will really suck to have them, like densely populated Lewiston. I actually left tech to work in manufacturing. I know the value it provides and how much it can negatively impact others. Big companies want to build this shit near population centers because it’s more convenient, profitable, easier to hire people, etc. Tough cookies, I say.
> There is a need for them and they aren't inherently damaging.
One solution: local taxes on the economic value generated by the data center. MNCs love to play accounting games, so a simple formula based on metered GWh multiplied by reported worldwide revenue with a scaling factor a fraction of a percentage. This fund should be ring-fenced be address whatever externalities are introduced by the data center, including electric bill subsidies, infra maintenance, and funding independent oversight.