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> Honestly, Amazon, you don't need tax breaks from Argentina. They don't need tax breaks from Argentina sure, but they do need one to justify building a data c
by dwild 7y ago
> Honestly, Amazon, you don't need tax breaks from Argentina.
They don't need tax breaks from Argentina sure, but they do need one to justify building a data center there. Do you expect them to just hold off building one there because they believe they could get a tax breaks later on?
> (Argentine peso has lost more or less 90% of its value against the dollar in 5 years)
Which is exactly why this move is great for Argentina, attracting big contract in your country is how you increase its value.
- colechristensen 7y agoI doubt they need the tax breaks to justify building data centers in Argentina. It's already ridiculously cheap to do anything there because of their currency teetering on the edge of failure for such a long time. Amazon is also running out of places to build new regions[1] https://aws.amazon.com/about-aws/global-infrastructure/ https://aws.amazon.com/about-aws/global-infrastructure/ Tax breaks serve to minimize the benefits to Argentina which is already going to be a very inexpensive place to operate.
- dwild 7y ago> I doubt they need the tax breaks to justify building data centers in Argentina. I If it was, then they would already have done it. > It's already ridiculously cheap to do anything there because of their currency teetering on the edge of failure for such a long time. If you bring a big infrastructure like that, for sure it will be quite good for the currency, which break the purpose of being there because it's cheaper, doesn't it? Being cheaper isn't much of a benefits either, what makes it costly to operate the datacenter won't make it cheaper down there, if anything, it's going to be more expensive to import the expertise and resource required and to compensate any issue that may arise from the country in itself (power grid instability seems to be a big issue people mentions here). > Amazon is also running out of places to build new regions Yeah... I don't see how they are running out of places at all from that source. > Tax breaks serve to minimize the benefits to Argentina Tax breaks serve to bring companies there. It doesn't "serve to minimize the benefits", Amazon isn't going there to minimize the benefits to Argentina, but to maximize their benefits to themselves. It will certainly minimize the benefits though to Argentina, but it doesn't serve that purpose. What you refuse to accept is that most likely Amazon wouldn't be there if it wasn't from that tax breaks, thus even if the benefits is lower than it could be, it's higher than it would be. I'm pretty sure Amazon didn't only contact Argentina to plan this datacenter, there's many other countries that could fit the bill in South America.