Look at your local megascale datacenter on Google Maps satellite view. How many parking spots does it have? How many of those parking spots are occupied? Are you seeing hundreds of cars, or is it just the mandatory pair of security guards and maybe a remote hands technician or three?
The tax breaks are well-established in the media, see for example [0].
The taxable income is generated remotely from the location of the physical data centre.
That’s the root of the problem.
Even if the data centre raises billions in revenue and pays billions in taxes, that isn’t paid to any government entity close to where the building is.
The locals get replaced by machines, the revenue is pocketed far away.
It’s the equivalent of big mining companies “investing” into mine automation in some developing country. The locals do not benefit!
You can’t collect tax revenue by giving away tax breaks worth almost the entirety of the taxes that would otherwise be collected. This is particularly common in the the gulf south - see Louisiana with Hyperion, which also has been an absolute disaster of a construction project (deaths, school can’t operate, all kinds of violations and damage) and is estimated to produce double digit jobs.
Look at your local megascale datacenter on Google Maps satellite view. How many parking spots does it have? How many of those parking spots are occupied? Are you seeing hundreds of cars, or is it just the mandatory pair of security guards and maybe a remote hands technician or three?
The tax breaks are well-established in the media, see for example [0].
The taxable income is generated remotely from the location of the physical data centre.
That’s the root of the problem.
Even if the data centre raises billions in revenue and pays billions in taxes, that isn’t paid to any government entity close to where the building is.
The locals get replaced by machines, the revenue is pocketed far away.
It’s the equivalent of big mining companies “investing” into mine automation in some developing country. The locals do not benefit!
I’m under the impression that most data centers have very few staff on site, almost zero.
Sure, some temporary jobs during construction, but I bet it’s nothing like a retail store or factory in operation…
As for taxable revenue, how does that help the community beyond property tax assessments?
You can’t collect tax revenue by giving away tax breaks worth almost the entirety of the taxes that would otherwise be collected. This is particularly common in the the gulf south - see Louisiana with Hyperion, which also has been an absolute disaster of a construction project (deaths, school can’t operate, all kinds of violations and damage) and is estimated to produce double digit jobs.