That breaks down in a lot of ways like most markets because of the huge power imbalance both in information and raw economic power. Just look at what Foxconn di

That breaks down in a lot of ways like most markets because of the huge power imbalance both in information and raw economic power. Just look at what Foxconn did in Wisconsin, (and pretty much everywhere else it's ever made a deal) the companies can promise the moon knowing they'll never deliver on half of it but the huge promise puts a huge electoral pressure on the local politicians to make the deal and the company signs a deal with little to no teeth (again they can largely dictate the terms of the deal because there's no reason they have to go with any particular location). Then the problems caused by the huge loans or bonds issued to finance a deal exist on a longer time frame than the company usually cares about and if they get too bad they can just toss in a little more compensation or start the cycle all over again in a new city. Google doesn't particularly care about how bad the local community gets there's enough single/childless couples in the work force to provide the minimal local employees a data center will need and when a particular employee's lifestyle changes they can just be move internally and replaced. And if it gets bad enough it's simple enough to build another datacenter.