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by DrewADesign 68 days ago
Bingo. Data centers are a net negative wherever they are. Giant, employ far fewer people than a grocery store after they’re built, crank up electricity costs, use tons of water, air pollution if it’s self-powered, noise pollution (it’s really worth watching Benn Jordan’s video on infrasound,) ugly… the only local entities that win are the landowner and the municipality that collects taxes on them. Though I’ve seen some astonishingly misinformed politicians offering big tax incentives for data centers not realizing that they employ so few people. From what I hear, even much of the construction is done by flown-in contractors with experience doing it elsewhere.

The people that own these data centers have only themselves to blame. They’ve been obnoxious, at scale, for so long that damn near everybody knows how much they suck, and they’re losing their ability to railroad locals into eating their turd sandwiches.

Edit: I know it’s gauche to talk about votes here, but this comment trended upward consistently for 45 minutes. In much less than 10 minutes, it collected more than half that amount in downvotes. I’d eat my hat if there wasn’t some kind of organized/automated brigading happening here.

Edit again: Now close to 70% gone. Not exactly surprising given the forum, but pretty depressing nonetheless.

7 comments

> 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.

im saying it would not only be economically feasible but economically optimal. power generation and reliability is an important factor. Even just the cost of electric varies, and might change after a data center is put in. in the case they need to provide their own power, you now have all the costs associated with power generation in that area too.

there are real competitive differences to locations and the best locations will likely be able to afford to tax. lets say they all go solar power, then places that are good for solar and it doesnt snow or have as many cloudy days relative to other places will be able to tax more than other places and possibly still have it be the most economical choice.

They also cant build them all in the same spot or move them that easily after they are built. It might be smarter to agree to be taxed and have an amicable relationship with the community you build the data center in rather than risk them changing the law after its already built because youre screwing them over.

I mean, just look at what happened with Foxconn in Racine, WI: https://www.nbcchicago.com/news/local/what-happened-to-foxco...

The community is a heck of a lot poorer now because they were convinced to offer incentives for a factory that never came. Once these firms can dangle hope in return for tax treatment or infrastructure, then you have a zero-sum game between townships where the winner — if there is a winner — ends up being the firm first, and the loser — if there is a loser, will be the township first.

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.

Unfortunately enviromental law has become a favorite tool of industry to stop, delay, increase costs to competition. Industry funded pretend enviriomentalist groups bringing up friviolous lawsuits has done much harm to the movement.
And a tool of industry to make easy money. You pay off the right people and your "environmentally friendly" product that's 99% as bad as the other thing while performing 50% as well can become "technically not mandatory but you won't get shit approved without it". Or some competing solution will get nerf'd driving business to you.

In a particular state in the midwest. The regulator has adopted the policy of "no new septics". You have to do a mound system at great cost. No rule, no code, no performance standard, just an unofficial policy of "we don't approve those". I know someone who's got a textbook perfect property for a traditional septic. They don't care. The shit pump people are laughing all the way to the bank.

It's all so tiresome.

Environmentalists are going to get blamed for the data center ban in Maine either way.
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.

What's the need?
Perhaps they are simply not taxed enough to benefit the community. If the local municipality is bearing a lot of these hidden costs, then perhaps the taxes need to be higher and directed at efforts that mitigate the worst of the problems. Water management solutions, air pollution management. Are there ways to mitigate the noise pollution? It seems like they should be taxed /more/ to help offset the negatives. There is surely a way to mitigate the problems. For example, can the noise pollution be addressed by forcing more green spaces around them, etc?
Almost anything can be mitigated at some cost - but it has to be determined what those mitigations are, and then demand them.

Many municipalities are unequipped to deal with a "datacenter" because on paper it is the same as an office building (that draws a lot of power), where it should be treated like an industrial site (rail yard, factory).

True. There likely needs to be some sort of templating handled by states. Each data center and location will be different and require assessment. This does drive costs up for the data center, but I don't see another fair way to handle it really.
They get their own unique third category as unlike industrial sites there's no hazardous chemicals and even the noise pollution is substantially different in nature.

The old datacenters are analogous to office buildings that emit some unusual noise and consume large amounts of electricity.

The new ones (ie gigawatt class) consume enough electricity for ~1 million households and at minimum enough water for 100k households (but possibly many times that).

Where does the water go afterwards? Is it evaporated? Sewer?
I believe evaporative cooling is the norm (thus my "possibly many times that" remark doesn't apply) however theoretically they could provide hot water as a utility or (as you say) just dump it into the sewer. If located next to a river or the ocean they could conceivably dissipate it that way but I'm not aware of any examples.

It's the sort of externality that could be solved with a well placed megaproject. A related question to my mind is why we're building such expensive strategic assets in the open rather than under a mountain.

Waste heat is a problem in waterways, even assuming no other pollutants as it can cause algal blooms on its own and mess with fish biology.
> under a mountain

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Evaporated. Given how the water cycle works, it should be expected it will be precipitated back as rain.
With the catching being of course that it won't end up where it was being pulled from.
Large industrial customers often have to sign up to load-shedding agreements wiith grid operators in times of peak grid load.

Can datacenters load shed when requested? If not, they should be paying a premium/spot market prices for power if they arent participating in load management.

The one I toured (decades ago) and dual redundant multi-megawatt diesel generators (big boys, always ask for a tour when they’ll be testing them, it’s fun to hear them start).

Local utility would ask them to shunt to the generators now and then during potential rolling blackout situations.

The city making money off of it doesn’t make the impact smaller. You can’t tax away the air pollution coming from a gas turbine running in a populated area.
That was my point. It doesn't all have to be taxes. It can also be agreed upon mitigation maintenance. Better filtration on gas turbines, etc. Green spaces to mitigate sound impact. I don't know, I am just wondering if there is a model that can be designed that makes a data center "balance" within its local environment instead of getting the opposite, tax incentives. Right now I agree, they get to socialize the costs and reap the benefits of building data centers to a large extent.
That all sounds nice in theory, but does the Lewiston municipal government have the resources and expertise to determine what countermeasures would be effective? Would it be left up to the company paying for the mitigations to decide what’s reasonable? I think we know how that would turn out. Even in heavily regulated states, industrial pollution still heavily impacts people in the vicinity. They usually accept it because so many of them work there. This place was estimated to employ 30 people. We don’t even know if problems like infrasound are reasonably avoidable or mitigated, and it’s not like they can make more water. Additionally, the way the industry has conducted itself over the past decade has been abhorrent. There’s no reason to believe they wouldn’t try to circumvent every last shred of mitigation knowing the city has comparatively minuscule resources to fight it.

If we put them anywhere — and I’m not convinced we really need all of the data centers we have, let alone all the ones we’re building — they should not be in the middle of densely populated areas like Lewiston.

youre starting a good conversation but as per typical internet fashion you are being critiqued as though your direction of thought is being presented as some sort of final solution.

i completely agree that we should be looking into modelling this in terms of what is possible to mitigate its impact and what does that look like with current technology and costs, and where would we need to develop new tech, and what would be the critical values to hit to consider mitigation a success

The fact that they need to use gas turbines at all is a tragic condemnation of how the US can’t build shit at all. We should be consuming more (green) energy to make our lives better, and rushing toward diminishing returns on energy consumption. Instead, we have this unholy alliance of (usually right wing) NIMBYs and (usually left wing) degrowthers that make it much more convenient to use a gas turbine than build renewable energy somewhere windy/sunny and plumb it in with some transmission lines. Renewable energy is way past the tipping point of being cheaper, the gas turbines are just there due to regulatory burden at all levels.
Yeah, but unfortunately, here we are, and there are the companies that want to build these things in completely inappropriate areas because it’s more convenient.
They lobbied for tax exemptions for 10 years or longer in most cases. Which probably is the useful lifespan, from most of the stuff in there
noise pollution (it’s really worth watching Benn Jordan’s video on infrasound,)

Noise from data centers is a real issue, but Benn's measurements and analysis are not great (speeding up the sample rate to demonstrate frequency effects is just wrong, among other issues).

It was a bit misleading in terms of the audibility of infrasonic noise, but I think he did a good job of highlighting some of the effects of infrasonic noise on QoL/health with the study towards the end. IIRC, he also recorded some regular human-range noise that I would personally find disruptive to have to live with (though this was a fair bit closer to the data center than the claimed range of infrasonic noise's effects)
- Datacenters don't use tons of water compared to just about any other business.

- It's not really fair to blame datacenters for using the municipality's electricity and then blame them again for being loud and generating electricity instead of using the municipality's electricity. Any given datacenter is only doing one of these.

- Presumably, the municipality's tax dollars benefit the people who live in the municipality in the form of better services

Doesn't this also apply to new housing? Strain on services per job created is probably even higher. The benefits are for someone currently not living here, just like data centers used for remote users. And if cheaper housing is available obnoxious poor people might move in. I think there should be a moratorium. Not in my backyard!
I’m not sure who you’d expect to sway equating data centers to east coast urban housing during a giant, sustained housing crisis, but your obviously disingenuous argument is completely ridiculous.
At least my comment is not completely content free. How is it different?

First, the gp comment says the data center is not good for existing residents - obviously true for housing too, which you didn't refute.

Then it assumes statewide ban should be based on personal preference of local residents. That is just a definition of nimbyism. While in reality I am a YIMBY and the end was part sarcasm, I would genuinely prefer living next to a data center, rather than next to non immigrant poor in the US. I grew up lower middle class or poor by US standards, and also live in Seattle, lots of experience. So I say along with data centers we have a statewide ban on anyone who is lifetime net consumer of tax money anywhere near my backyard.

> Though I’ve seen some astonishingly misinformed politicians offering big tax incentives for data centers

My national government is currently giving massive tax breaks for one of these. It's going to be, after all, "the biggest foreign investment in the country ever"...

This thread is obviously being brigaded. Wiped out like 30 upvotes on one comment in no time. If you need to silence people talking about your company or favorite toy, maybe you should re-examine your life choices. Pathetic. Is there some polymarket nonsense going on here?