Data Centers: States Gamble Away Billions on Empty Promises? Axecap Weighs In

Show Me the Money (They Aren't Getting)

So these states bless their cotton socks are bending over backward to lure in data centers with tax breaks that'd make even me Bobby Axelrod blush. Think of it: Indiana waving goodbye to 7% sales tax like it's spare change. And for what? To make Bezos and Zuck even richer? It's like handing a winning lottery ticket to someone who already owns the casino. As I always say 'What's the point of having fuck you money if you can't say fuck you?' But in this case it's the states saying 'fuck you' to their own taxpayers.

AI Boom: The Gift That Keeps on Taking

Then comes OpenAI and their little pet project ChatGPT. Suddenly everyone needs more data centers. It's like discovering a new strain of crack and needing warehouses to store it. PwC projects a cool trillion dollars in data center investment by 2027. A trillion! You could buy a small country with that kind of scratch. But instead it's going into servers and air conditioning all while states are patting themselves on the back for attracting these behemoths even as they quietly drain the public coffers. Remember what I said 'Money is not the goal. Power is the goal.' These tech giants are amassing both and states are handing them the keys.

The Job Mirage

Here's the kicker: these data centers don't exactly create a jobs bonanza. You get a flurry of construction jobs sure. But once the thing is up and running it's like a ghost town. A Microsoft data center in Illinois gets over $38 million in tax breaks and employs…drumroll…20 people. Twenty! You could probably find more people working at a decent sized deli. Meanwhile these state officials are patting each other on the back like they just solved world hunger. They’re mistaking activity for achievement. And they are going to pay for it.

Virginia is for...Data Centers?

Virginia the self proclaimed data center capital of the world actually did some digging. They found they're getting about 48 cents back for every dollar they *don't* collect in sales tax. Not exactly a roaring success. But hey at least it's better than other industries getting tax breaks which only return 17 cents. I guess when you're playing with billions mediocrity looks like a win. As Sun Tzu said 'Let your plans be dark and impenetrable as night and when you move fall like a thunderbolt.' These states are definitely moving but it's more like a slow painful stumble.

The Spin Zone

Of course you have the tech trade associations spinning this like they’re DJ Khaled. They say these data centers are economic engines creating jobs and boosting the economy. And sure there's some truth to that. But let's not forget who they're representing: the same Big Tech companies raking in billions while paying less tax than your average barista. These guys are masters of the 'win win,' where they win twice and everyone else gets the bill. "A person who doesn't think is no different from one who can't". And these state officials are just not thinking clearly.

Power Hungry

And then there's the power. These data centers are sucking up electricity like it's going out of style. Virginia's power demand is projected to *double* in the next 10 years mostly because of these digital behemoths. And while they claim to be investing in sustainable energy the strain on resources is likely to increase costs for everyone else. So congratulations Virginia you're now powering the internet one overloaded grid at a time. In the words of Winston Churchill "You can always count on Americans to do the right thing after they've tried everything else."