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by order-matters 64 days ago
>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.
1 comments
BeetleB 64 days ago
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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order-matters 60 days ago
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.

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scoofy 64 days ago
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.

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