Can Africa compete with the US as location of choice for data centers? It is competing with US federal and state governments!
‘It’s a Money Loser’: Tax Breaks for Data Centers Are Under Fire
Lawmakers in US states that gave up hundreds of millions in revenue are having doubts about whether the incentives pay off.
By Saijel Kishan
May 9, 2024 at 12:00 PM GMT+3
Updated on
May 10, 2024 at 5:09 AM GMT+3
For years, US states have dangled tax breaks to help lure data centers, eager for the investment and jobs—and also the cachet of reeling in big-name tech companies, such as Apple, Facebook and Google. Now, in the midst of an artificial-intelligence-fueled building boom, those incentives are coming under greater scrutiny from politicians of both parties.
At issue is that these nerve centers of the digital age typically employ just a few dozen workers. To run one, all that’s needed is a skeleton crew that includes technicians, security personnel and building-control specialists, whereas a factory of similar size would have hundreds if not thousands of workers.
bloomberg.com
In the state of Georgia, bill that would pause tax breaks for data centers in has been vetoed by the state governor. The bill would have also created a Special Commission on Data Center Energy Planning.
The commission would review the existing grid and energy supply, and make recommendations around expanding grid capacity and transmission infrastructure and siting data centers.
Atlanta is a major data center hub; companies including Microsoft, CoreSite, QTS, DataBank, Flexential Switch, DC Blox, Edged Energy, Stack, T5, Vantage, EdgeConneX, and others have campuses in operation or development in and around the area.
Guess who is paying to elect the Georgia governor?
His opponents see his wealth as a weakness. Abrams is running an ad campaign calling him "Kickback Kemp," accusing him of enriching himself while in office and of passing an income tax cut, which proportionately benefits the state’s highest earners. |
