Data In The Dark: How Big Tech Secretly Secured $800 Million In Tax Breaks For Data Centers

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How big tech secretly secured $800 million in tax breaks for data centers:

olumbus City council member Emmanuel Remy listened intently as the lawyer on his computer screen argued why the company he represented was entitled to a big tax break. During thein March, the attorney said the company intended to build a data center on a 500-acre site just south of Ohio’s capital city, which, when complete, would employ 20 people full time. In return, the company wanted $54 million in tax incentives.

When the council members voted in favor of Ziance’s proposal at the meeting, none of them knew the identity of the parent company, according to Remy. Nor did local residents, neighbors and other stakeholders involved. Only the mayor’s office and city employees who had negotiated and signed non-disclosure agreements were informed of the parent company’s true identity.

With more floor space than commercial aircraft hangars and enough room for multiple football fields, data centers house hundreds of rows of computers that process information from Instagram photos to government databases and have become crucial infrastructure for companies like Google and Amazon that have made lucrative businesses of hosting other companies' computer networks — and need space to store their own.

a $150 million tax break for a data center in Eagle Mountain, Utah, for up to 50 jobs, or at least $3 million per job. It was the first of several phases of the project that could see up to $750 million in tax breaks awarded. In 2017, Apple$208 million in tax breaks for a project in Waukee, Iowa that would create 50 full time jobs, or more than $4 million per job.

 

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