It's the local v. federal thing. The US has been suffering from this for a while, as has Germany. The EU, too, is suffering from this.
The local politician's thinking is thusly:
- Datacenters are going to happen somewhere. And when this inevitably occurs, jobs everywhere, including here, will disappear. There is nothing I can do about that. It's as baked into my assumptions about the near future, as is the fact that the sun will rise tomorrow.
- If I allow the datacenter to happen here then while the builders are here they might buy some stuff locally for the build, and after they are done, the datacenter will employ literally a handful of people to guard and maintain the place. Not much of a gain, but, hey, the alternative is that I have nothing at all.
In other words, the 'competition' aspect between states / bundeslander / EU countries is causing these entities to race to the bottom together.
The solution is... not to do that. As somebody living in a country that doesn't suffer from this particular malady (The Netherlands, which does have provinces, and provinces work in reverse from states: The only rights they have are ones explicitly allotted to them by the state; The Netherlands is not a 'federation of provinces', whereas the US is a 'federation of states', Germany is a 'federation of bundleslander', and the EU is a federation of countries).
It means a province in The Netherlands cannot just offer a would be major company some ridiculous boon to come settle in their province at the cost of other provinces, because provinces in The Netherlands do not have the right to dictate e.g. tax rates, and even any infra project they would do requires permission (and funds) from the 'federal level' (the country).
It's been going on for ten years and there have been nada, zero, zilch solutions to the problem. Thus my stance remains: You have to put a stop to that. The problem is, of course, this requires an entity that currently has some power (namely: states / bundeslander / EU countries) to voluntarily give up power to the federated entity that sits 'above' them, and it's always difficult to convince an entity with power to voluntarily relinquish it.
Still, that's the job.