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So I was just Googling this, and apparently most datacenters don't pay any state tax on revenue generated by said datacenter? Huge loophole if true, no wonder c

by causal 5mo ago

So I was just Googling this, and apparently most datacenters don't pay any state tax on revenue generated by said datacenter? Huge loophole if true, no wonder capital investment in datacenters is so high. [0] [0] https://www.datacenterknowledge.com/regulations/how-are-data-centers-taxed-and-how-much-do-they-actually-pay- https://www.datacenterknowledge.com/regulations/how-are-data...

polski-g 5mo ago
I like how you said "googling this", but then didn't actually read the article you linked.
- causal 5mo ago
  > In general, data centers only pay corporate income tax if they generate revenue. Not all data centers do this because many don’t sell goods or services; they simply house servers. By qualifying as business expenses rather than revenue generators, they reduce the tax liability of their parent companies. > Thus, when it comes to income tax, at least, many data centers – especially hyperscale data centers owned by large companies – don’t generate tax revenue because they don’t generate direct operating income.
  - osiris970 5mo ago
    They pay property taxes. The best tax there is as of now (LVT when)
    - skinfaxi 5mo ago
      I would be surprised if these developments didn't have tax abatement clauses.
    - causal 5mo ago
      For a datacenter that generates billions, that is not much.
      - polski-g 5mo ago
        "The datacenter" doesn't generate billions. The computations performed inside might, but almost never is the datacenter owner the same person running the servers inside. The owner is just leasing space; selling electricity and cooling to a third-party company. Their margins (ie: taxable income) are thin because competition is high. A landlord's taxable income is not determined by his tenant's income.
        causal 5mo ago
        You are being pedantic to pretend you don't understand. It's tiring and unproductive. At the end of the day, people are paying money to utilize the servers within the datacenter. That money is revenue. That revenue ought to be taxed by the state.

by causal 5mo ago

polski-g 5mo ago

I like how you said "googling this", but then didn't actually read the article you linked.

causal 5mo ago
> In general, data centers only pay corporate income tax if they generate revenue. Not all data centers do this because many don’t sell goods or services; they simply house servers. By qualifying as business expenses rather than revenue generators, they reduce the tax liability of their parent companies. > Thus, when it comes to income tax, at least, many data centers – especially hyperscale data centers owned by large companies – don’t generate tax revenue because they don’t generate direct operating income.
- osiris970 5mo ago
  They pay property taxes. The best tax there is as of now (LVT when)
  - skinfaxi 5mo ago
    I would be surprised if these developments didn't have tax abatement clauses.
  - causal 5mo ago
    For a datacenter that generates billions, that is not much.
    - polski-g 5mo ago
      "The datacenter" doesn't generate billions. The computations performed inside might, but almost never is the datacenter owner the same person running the servers inside. The owner is just leasing space; selling electricity and cooling to a third-party company. Their margins (ie: taxable income) are thin because competition is high. A landlord's taxable income is not determined by his tenant's income.
      - causal 5mo ago
        You are being pedantic to pretend you don't understand. It's tiring and unproductive. At the end of the day, people are paying money to utilize the servers within the datacenter. That money is revenue. That revenue ought to be taxed by the state.