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by lykr0n 28 days ago
> employment opportunities

the 5-7 people they employ during normal operation. High skilled engineers get flown in for setup and major changes/operations.

They add little local economic value.

2 comments

They can be taxed. There should be a point where the price is right for the community hosting.
The vast majority of tax revenue is calculated where the headquarters are located, not where the datacenter is located.

I've seen multiple stories already talking about how these installations are almost universally net-negative for the locales they're built in.

If this is the case why would local officials permit them?
Why do members of congress end up with more wealth than their salary could justify?
So who is bribing Malaysian officials to give tax breaks to foreign DCs? Be specific.
Obviously nobody is incentivized to do that. Nothing to see here.
I would say a combination of already being rich, being old, and insider trading. Congress can't actually take personal funds from lobbyists legally.

Maybe if someone is in Congress, they can skirt the law around lobbyist gifts due to your position of power, but 1. it doesn't sound very plausible that someone becomes a multimillionaire by squirreling away illegal gifts or campaign funds and 2. to become I doubt small town city councils making these decisions are in a similar place. Most of reality is boring and not like the movies.

Why does Malaysia give tax breaks to data centers?
Definitely not because of long-term employment, even very large DCs only employ about a hundred staff on-site.
A hundred is a lot bigger than five
Still very few for deserving a tax break based on potential employment opportunities. A DC simply doesn't help the local economy, it's very often a net-negative: it's very resource-intensive while not generating much in terms of economical activity for where it sits at.

In a sense it's purely extractivist consuming land, water, and energy without benefits to the community.

They consume land? Where does the land go?