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mindcandytoday at 4:10 PM3 repliesview on HN

I find what people want from the data center build-out is pretty reasonable:

1. Don't build loud machines across the street from someone's house. 2. Don't drive up water/electricity bills by pulling from the municipal grid. 3. Don't burn the earth with CO2. 4. Don't facilitate techno-fascist surveillance. 5. Pay a lot of taxes.

But, when I see people complain about data centers, I usually see a spiral of rage-bait based on mis-framing, conjecture and repeating stuff others simply made up to get everyone mad. The online discussion tone is reaching a shrieking pink-froth level.

What I'm finding in my lazy research on the subject is that recent and planned datacenters

1. Are exceedingly rarely built where anyone can hear them. But, occasionally are. Thus ragebait articles. 2. Pull from muni grids for small scale centers. But, the hyperscalers are independent. 3. Hyperscalers are burning way too much natural gas. That's bad. But, not using nearly as much water as people think. That's good. 4. Techno-fascist surveillance doesn't need 1000s of datacenters. Just a handful off in the corner is plenty. 5. Datacenters usually are paying a lot of taxes. I think this drives the majority of the push from politicians. And, there's a minority from corruption.

Frankly, the biggest issue folks should be pushing for is to require hyperscalers build out solar power instead of natural gas. That will be a hard fight because it requires more up-front time and investment. From there, ensuring small scale centers don't affect people's bills is a good fight. But, passing laws to ban datacenters seems performative compared to passing laws to regulate their power and water impact.


Replies

titanomachytoday at 7:14 PM

I did some analysis on this, although I’m not a finance expert. If you put $100M of GPUs in a Virginia datacenter then you might pay $2M per year in local taxes over the 5 year life of the equipment. (I don’t think tech companies tend to pay much corporate income tax.) If you took the same money and put up an office with 150 people making $150k/year, you’d pay less property tax but like $7M in income taxes, not to mention the other taxes those people pay as they go about their lives nearby, and the fact that their incomes are re-invested in the community. So companies shifting their spending from employees to GPUs seems to massively reduce their tax burden, and datacenters are a vastly worse deal than offices for whatever community ends up stuck with them.

It does seem like civil society could hold out for a better deal here, and not lose what little tax base we are currently getting from these tech giants.

nemomarxtoday at 4:26 PM

Just require them to also pay for a new local power plant with the capacity to cover them before they get building permits, honestly. Maybe say they can't qualify for tax breaks too?

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loudmaxtoday at 5:46 PM

Absolutely this. If you think about different types of objections to nearby data centers and do some pretty minimal research, you come up with a reasonable set of solutions that most people would agree on.

That's not what people are doing though. People are genuinely afraid for the future, and much of the data center backlash is driven by emotion. You can see this reflected in populist political movements. People have a (well-founded) sense that those in power don't have their interests in mind and they're lashing out without much thought.