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Meta to receive $3.3B in tax breaks for its $10B Louisiana data center

fortune.com

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Re: Meta to receive $3.3B in tax breaks for its $10B Louisiana data center

#121

Post by rdedev »

ChadNauseam wrote: post #7
dietr1ch wrote: post #6

Earlier quoted context omitted.

If they are willing to spend 35B there's no doubt they could spend 30B without asking the government to reach into the people's wallet. The US needs to do something about lobbying. It seems too late already, but maybe you can get things to improve a bit.

It's tempting to blame any political outcome you don't like on lobbying. It allows you to believe that almost no one supports the outcome that you don't like, because you can blame it on politicians manage to be bought by a small number of lobbyists. But it might not be the case. Several states (I believe Texas, Georgia, and Indiana) don't charge sales tax to data centers. So from Louisiana's perspective, the alterna…

It wouldn't be a problem if 1) people get a say in the matter and 2) those tax breaks don't require increasing taxes else where. So far with all the data centers built that does not seem to be the case.

Re: Meta to receive $3.3B in tax breaks for its $10B Louisiana data center

#122

Post by gizajob »

cj wrote: post #9

No one likes to see big companies avoid taxes. But I don't see what other options are available for states to compete with each other if not through tax breaks. Edit: I suppose if you ban tax breaks, if a state wants to be competitive, they still can but through modifying the tax code for everyone instead of giving certain people exceptions. That doesn't seem like a terrible alternative..

The big companies have the cash for this by avoiding paying tax in the first place, then, in the areas where they’re spending money like capex and have to pay tax, they pull moves like this to further avoid them.

Re: Meta to receive $3.3B in tax breaks for its $10B Louisiana data center

#123

Post by ReptileMan »

dgellow wrote: post #42
ReptileMan wrote: post #29

Earlier quoted context omitted.

Infrastructure is a good one. Universities and high quality labor too.

Do datacenters really require good infrastructure? Given they are planned all around I suspect that’s not really the case. I’m also not convinced university or the quality of labors are strong arguments. Aren’t those datacenters made fairly cheaply and full of automation?

I answered a general question. And datacenters require quite a bit of infrastructure - roads, power lines, cheap electricity, abundant water. And if they don't use labor, then there is no reason to want them in your state anyway.

Re: Meta to receive $3.3B in tax breaks for its $10B Louisiana data center

#124

Post by ch0wn »

cdrnsf wrote: post #104
fullshark wrote: post #99

What's are the positives for local communities for data centers? I see only negatives. At least prisons have to hire people.

Jobs that exist only during construction, ambient noise, higher electricity and water prices. They also get the privilege of living near technology that represents the future: degraded education, unemployment and spiraling inequality.

You're forgetting insane levels of air pollution and a measurable increase in ambient temperatures.

Re: Meta to receive $3.3B in tax breaks for its $10B Louisiana data center

#125

Post by bnycum »

After Meta in Louisiana, Amazon is currently building 3 separate data centers across Shreveport-Bossier. Have to imagine they are receiving the same treatment. I’ve driven by the Bossier Parish grounds and the cleared land alone is massive. Each are expected to be 2-3 million sqft.

Re: Meta to receive $3.3B in tax breaks for its $10B Louisiana data center

#126

Post by papichulo2023 »

cogman10 wrote: post #34
cj wrote: post #9

No one likes to see big companies avoid taxes. But I don't see what other options are available for states to compete with each other if not through tax breaks. Edit: I suppose if you ban tax breaks, if a state wants to be competitive, they still can but through modifying the tax code for everyone instead of giving certain people exceptions. That doesn't seem like a terrible alternative..

The other option is to not offer the tax breaks and if the company wants to build a data center, they also need to pay the taxes for it. If a state is dumb enough to offer tax breaks that's on them. There's also not "competition" here. It isn't as if data centers have almost any positive local effects, beyond their property tax revenue. They have very few employees and if the property tax is cut they ultimately don't…

At this scale they ask different countries for tax breaks though

Re: Meta to receive $3.3B in tax breaks for its $10B Louisiana data center

#127

Post by wnevets »

fullshark wrote: post #107
wnevets wrote: post #101

Earlier quoted context omitted.

The local officials get slightly richer.

I'm not that cynical, I think they got stars in their eyes, were charmed at the idea of doing business with big money / tech and didn't do any actual cost/benefit analysis. Maybe they get an opportunity to make a very powerful friend/crony and took it without considering their duty to their constituents.

Maybe but also

> Per the report, the package of tax breaks and incentives was achieved through local officials bound by nondisclosure agreements, quietly struck legislative deals, and parliamentary sleight of hand to avoid public scrutiny of the deal. [1]

[1] https://sherwood.news/tech/hyperion/

Re: Meta to receive $3.3B in tax breaks for its $10B Louisiana data center

#128

Post by cogman10 »

papichulo2023 wrote: post #126
cogman10 wrote: post #34

Earlier quoted context omitted.

The other option is to not offer the tax breaks and if the company wants to build a data center, they also need to pay the taxes for it. If a state is dumb enough to offer tax breaks that's on them. There's also not "competition" here. It isn't as if data centers have almost any positive local effects, beyond their property tax revenue. They have very few employees and if the property tax is cut they ultimately don't…

At this scale they ask different countries for tax breaks though

Again, that's no sweet off my brow. It's not as if working with a datacenter in canada, mexico, or Ireland is all that different from one in the US. Especially when you start talking about what these are being used for, LLMs. The added latency for a datacenter being in China has zero impact on how I use it.

There also isn't some magical expertise loss from these datacenters not being local.

About the only risk is that the various governments become so hostile to people in the US using their datacenters as to apply taxes and fees on usage. Which is unlikely to say the least. The owners of these datacenters want them used and if they can convince a government to give them preferential treatment they can likely convince the same government not to tax their clients.

I guess there is also the risk of the government spying on the incoming and outgoing prompts. But lets be really real here, that's unlikely to matter to almost anyone other than people working for our government.

Re: Meta to receive $3.3B in tax breaks for its $10B Louisiana data center

#129

Post by twoodfin »

ceejayoz wrote: post #25
cj wrote: post #9

No one likes to see big companies avoid taxes. But I don't see what other options are available for states to compete with each other if not through tax breaks. Edit: I suppose if you ban tax breaks, if a state wants to be competitive, they still can but through modifying the tax code for everyone instead of giving certain people exceptions. That doesn't seem like a terrible alternative..

> But I don't see what other options are available for states to compete with each other if not through tax breaks. Federal ban on tax breaks for companies over a certain market cap? Why can't they compete on "we have a good regulatory setup" or "we have good schools for your employees" or "we are a nice place to live"? Why compete on "we'll soak or own taxpayers more than the next state over so you can make even mor…

How would that not require a Constitutional amendment?

Re: Meta to receive $3.3B in tax breaks for its $10B Louisiana data center

#130

Post by hgoel »

shimman wrote: post #65
nomorewords wrote: post #49

Earlier quoted context omitted.

When the damage is already done?

It's okay, as the on-going damage continues Americans tend to be well armed enough to go on a few rampages here and there.

Americans are very good at talking tough like that, only to use their arms against innocent randos.
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