Slashdot Mirror
Apple To Build $1.3 Billion Iowa Data Center, Get $208 Million In Incentives (cnbc.com)
CEO Tim Cook said on Thursday that Apple will invest at least $1.3 billion in the first phase of an Iowa data center project. The data center will be built near Waukee, Iowa, creating 50 permanent jobs with more than 550 jobs supported by construction, Apple said in a statement. CNBC reports: "Apple is going to continue to invest in that future, for Waukee, for Iowa and for America," Cook said. It will get $208 million in state and local tax benefits, according to The Associated Press. "Apple has been searching for the perfect location and I am so proud to say that they found it right here in Iowa," Iowa Gov. Kim Reynolds said, noting the state's educated workforce, stable climate and low-cost, renewable energy. "Iowa workers give companies a leg up at the start.... it is just a blessing to be in the heartland of America." The 400,000-square-foot data center will "strengthen the relationships" in Iowa, where 30 Apple suppliers, including 3M and Qorvo, already operate, Cook said.
I'll be happy to create one job if you give me $26 million. I will be sitting at home awaiting the check arrival so I can start. Thanks.
in the Dem primaries!
You heard it here first.
And this is why the US can't have nice things any more.
Someone should tell the authorities that data centers need 'lots' of electricity, and don't create jobs. You need a landlord, and a guy to replace the hard disks.
The state will spend $208M to get 50 "permanent" and 550 temporary jobs. Let's say the "permanent" jobs last for 10 years before Apple decides to pull the plug and the temporary jobs last 1 year. Instead of giving Apple $208M, if the state just gave each "worker" US$198,000 per year, they would break even. The temporary workers would get 198K and the permanent workers 1.98M. All for the same price they are paying Apple for jobs that probably earn workers only US$45K-50K instead.
Hey, give 5200 people a "basic living stipend" of US$40K and see what sort of small businesses they can develop within one year that will help employ more than 50 people permanently.
50 permanent jobs, $4 million a job, hmmmm sounds like an outstanding investment on the states part.
Trump will crow on this one. Let's see how many jobs are to be created. I am not even sure the Foxcon deal was very good. It's a global economy now.
Foxconn just took away his title, they just wrangled a $3B package from the rubes in Wisconsin.
1. A guy
2. A dog
The guy is there to feed the dog. The dog is there to make sure the guy doesn't touch the servers.
-B-
It's good for those 50 people, who I assume are going to be reduced to 10 or 15 over time as data center tasks get even more routine. You basically need security guards, 1 or 2 admins and a bunch of hardware guys to run around and replace disks, rack equipment, etc. And with vendors producing Open Compute-style pods-in-a-box that just have cables, water lines and ductwork coming out, this job gets even easier and more automated. Disks are so cheap now that they could probably just let them die and do a once-a-year purge of all the dead drives, meaning you wouldn't even have to have the full time guys for that job.
Data centers are not a good investment for EDAs...the tax forgiveness and free electricity they're getting will never be offset by 50 jobs over the long term. Government officials think "cyber" when they hear about these projects and think they're master negotiators for bringing this big Silicon Valley titan into their jurisdiction. The details come out later...and Apple may not even decide to stick around.
I think it's growing more and more obvious that full-time, lifelong employment is going away, but the need to keep the consumption cycle running isn't. You're not just going to replace the whole "money is the only store of value" thing overnight. Since no one will ever agree to a basic income until people are killing each other over food scraps, I propose blatant make-work projects. Seriously, if employers won't hire the vast majority of people, how can you run a society where most people can't participate in the economy, _and_ not make those who can feel that those who can't are "lazy drug using welfare queens" or similar?
Companies shouldn't get handouts from governments.
It goes against all the rules of capitalism and the free market.
If they can't make a go of it without corporate welfare they should shut shop.
Go well
And they still get government subsidies.
208 million to get 50 jobs is quite expensive. At that price we can give 50 huge universal basic income for more than a lifespan.
I agree technological leadership is more than 50 jobs, but please stop telling us such tax breaks are for employment.
For anybody too lazy to do the math, that works out to $4.16 million per permanent job, or $208k per year per permanent job for 20 years.
Barclay family motto:
Aut agere aut mori.
(Either action or death.)
Apple doesn't get a dime from the state. Zero. Zilch. Nor do Iowa tax payers lose or spend a dime on this deal. What the state promises is to temporarily not take as much money from Apple as they ordinarily would.
Having said that, I think these special tax deals should be made illegal. They are utterly corrupt and unfair. Businesses in a state should be taxed uniformly, period. If Apple isn't willing to move to Iowa at Iowa's regular tax rates, then Iowa either needs to live with that, or it needs to lower taxes for all businesses uniformly.
1. They are being paid 4M per job
No, this assumes that some other company would have built on that land and paid the full tax rate. This is vacant land which is taxed at a far lower level. It seems more likely that Iowa is simply applying the tax rate of what vacant land would cost instead of developed commercial property.
2. Apple can pick up and leave after 10 years
True, they can have another state build a new data center for them but why would they? The labor cost savings would be insignificant and if you have a perfectly good data center what is the point of mothballing it?
I don't like the fact that rich companies like Apple get tax breaks but everybody wants to have high tech jobs. Tech companies are not going to move to sparsely populated states like Iowa without major incentives. Even if they leave later on they will leave behind a built up infrastructure that could be used to lure other companies to the region.
Clean American Coal that will be cause of disease for the Americans nearby. But it will be an American disease.
Cash, is that you?
What if the state gave local entrepreneurs 208 million in incentives to start businesses. Would that create more jobs/revenue than a data center?
Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
Is it really required?? whoa! That is a huge amount! Give me $1.. billion and I will help eradicate hunger from many parts of India.