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Iowa's New Top Crop Is Server Farms
1sockchuck writes "Microsoft just confirmed that it will build a $500M data center in Iowa, following the lead of Google, which is nearing completion of a $600M facility in the state. Boosted by generous tax incentives and affordable power, Iowa is prevailing in a fierce competition with other states for these huge data center projects for tech titans. Iowa officials say they intend to leverage that track record to attract even more projects in a bid to transform the state into a mecca for server farms." The Economist covers this trend more broadly, focusing on Washington state and Iceland angling to become server-farm destinations.
Tax cuts are not welfare.
If you decide not to hold up a liquor store, that's not a generous gift you've given the liquor store owner.
Think of it as a "Tax Sale". The state can give up-front breaks to the corporation, they can offset this with additional revenue that is brought in from the ancillaries: more high-salary (high tax) workers moving in, other associated businesses that will benefit (and pay more taxes), and even other effects like rising property taxes.
Now I'm thinking like a business person on this. I have a deep cynicism that tells me that your average scum sucking low-rent politician isn't doing this kind of analysis. They're likely just handing over the tax breaks to generate a larger pool of benevolent corporations that give to their re-election coffers, and to stamp their campaign signs with "I created ### jobs for Iowa" pandering.
I get the feeling my ranting is going to burn some Karma. Oh well, it's election season, anything goes!!!
s/generous\ tax\ incentives/bribes