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March 21, 2011

Please do not extend Data center tax breaks

Filed under: Datacenter,News — Tags: , — Nate @ 9:20 am

This is just disgusting to me. It pissed me off when it passed the first time and it is even more stupid and crazy if it happens to pass again.

Just read on DataCenterKnowledge that Washington state (where I am) has someone(s) proposing a bill that would extend data center tax breaks for another 10+ years.

This, in a time where the state forecast just last week an even larger state budget deficit.

Key lawmakers now turn their full attention to writing budgets for the 2011-2013 cycle. Revenue is expected to be down for that budget by an additional $700 million, Thursday’s forecast said. Now, the deficit is estimated to be about $5.1 billion, but that includes voter-approved mandates that lawmakers don’t plan to fund.

The big issue I have with this data center tax break is these data centers really don’t contribute much. They have a short term gain in construction jobs but operationally they employ hardly anyone and they consume an enormous amount of energy and water requirements for cooling.

Take a look at this $1 billion Apple data center for example –

Tax breaks could total $300 million for 50-employee server farm in North Carolina

If your going to give tax breaks, give them to businesses that actually generate jobs. There should be some sort of rule, # of jobs per square foot, or # of jobs per $ in tax break or something. Data centers are a waste for tax breaks, let them go somewhere else.

The original tax break to data centers was approved right after the state announced a $1 billion tax increase on the rest of the state.

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