‘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.
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.