2 ms·
The other categorical error is that the American people paid the railroads a monumental subsidy to get the job done. We gave them almost 10% of the territory.
by jeffbee 6mo ago
The other categorical error is that the American people paid the railroads a monumental subsidy to get the job done. We gave them almost 10% of the territory.
- lenerdenator 6mo agoGiven the size of some of these data centers, the incentives packages that local governments often give their developers, and the impact on the electric grid that can, in some cases, raise costs for other ratepayers, I'd say the comparison could be similar. The one Google's putting in KC North is 500 acres [0] and there were $10 billion in taxable revenue bonds put up by the Port Authority to help with the cost. This for a company that could pay for that in cash right now. [0] https://fox4kc.com/news/google-confirms-its-behind-new-data-center-coming-to-northland/ https://fox4kc.com/news/google-confirms-its-behind-new-data-...
- jeffbee 6mo agoThat's the opposite of a subsidy. KC stakes nothing of value and gets a defined revenue for the next 25 years.
- lenerdenator 6mo agoThen why would Google mess with the bonds at all? Again, they have the cash to buy that land and develop it without any further consideration beyond permits and planning.
- jeffbee 6mo agoThey lock in things like tax rates and insulate their investment against political risks for the duration of its economic life.
- lenerdenator 6mo agoSo they're doing something most of us can't do at the expense of the budget of the local government should the tax rates need to rise. Wonderful. I'm so happy this is happening in my community.