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Meta to receive $3.3B in tax breaks for its $10B Louisiana data center
- Protagorist 5mo agoSo glad to see small companies like this get a leg up.
- repelsteeltje 5mo agoSeems only fair that we pay our taxes when those are used to subsidize such lofty endeavours.
- aspenmartin 5mo agoI think there are plenty of issues with data center construction but there are real economic benefits here. If there weren’t it would be pretty easy for states to thwart them. You would see the leverage switch and companies paying states incentives.
- carefulfungi 5mo agoThis assumes that the legislators and regulators who approve projects like this are motivated by economic benefit and not by campaign donations and other favors.
- LtWorf 5mo agoCould you say what those benefits are?
- giancarlostoro 5mo agoNow if they can actually do something with AI that is meaningful? I assume Mark is trying to reach for like some crazy goal instead of just getting reasonable products to market. I've known the type of person who chases the stars instead of just taking their time, building up the core and then snowballing into greatness.
- mentalgear 5mo agoYou call chatting with AI-influencer chatbot 'friends' un-meaningful ? Don't make little Marky cry. Not after the VR disaster.
- giancarlostoro 5mo agoI mean a lot of my friends own Meta headsets but the “metaverse” is not relevant to anyone. He had a neat idea, but he needs to stop making everything ingrained to Facebook.
- alex1138 5mo agoIt's actually kind of amazing that (apparently, but I'm willing to be wrong) AI has resulted in more people getting banned (rather than less, which you would think. You would think AI makes this easier to filter out, search for problem accounts, whatever) Like, the problem was always the asymmetry. Can FB police everything? Probably not. Should they be able to operate at scale if they can't? Unclear. Section 230 blah blah platform not responsible for things users post But YOU sure get banned. At any time for any reason. When you then "report" (that button does... what, exactly?) an actual problem, platform happily tells you no community standards were violated. You might even get banned for something you were forced to do https://news.ycombinator.com/item?id=24776748 https://news.ycombinator.com/item?id=24776748 (https://news.ycombinator.com/item?id=24201306 https://news.ycombinator.com/item?id=24201306) See, this is why shit like holding his feet to the fire for Dumb Fucks https://news.ycombinator.com/item?id=1692122 https://news.ycombinator.com/item?id=1692122 matters. I don't care if he was young, he also hacked Crimson reporters. Because what he ('he', assuming he didn't just steal it from the Winklevosses) built early on has evolved into a platform that is many things and fucking broken (https://news.ycombinator.com/item?id=14147719 https://news.ycombinator.com/item?id=14147719; https://news.ycombinator.com/item?id=6090712 https://news.ycombinator.com/item?id=6090712) on top of that
- giancarlostoro 5mo agoI stopped using Facebook because they nearly banned me because their AI was too stupid to notice a joke comment. I was working for Red Lobster corporate at the time, and was the admin of the Facebook app, so if I had gotten banned, it would have been a mess. So I flat out stopped using Facebook. I maybe log in once in a blue moon, then log back out. I appealed the strike, then not even 5 minutes passed, I was denied. I don't even remember being able to explain why what I said was not worthy of a warning, but honestly, screw em. I don't even need it for work anymore, but I'm never going back to that dystopian shell of social media. I do hate it though, Mark has meaningful funding to build some actually useful AI, hell if he started bottom up, he can have his anime waifu he wants.
- dmix 5mo ago> Hyperion will be exempt from state and local sales and use taxes on its data center equipment for the next 20 years, which includes the GPUs that train and develop AI models. Sherwood News estimated that since the state’s combined state and local sales tax stands at 9.56%, spending the roughly $35 billion for the GPUs of the center will hand the firm about $3.3 billion in tax breaks.
- dietr1ch 5mo agoIf they are willing to spend 35B there's no doubt they could spend 30B without asking the government to reach into the people's wallet. The US needs to do something about lobbying. It seems too late already, but maybe you can get things to improve a bit.
- tt24 5mo agoDo you have evidence that lobbying is what produced this outcome?
- Forgeties79 5mo agoPlease don’t do that.
- pfdietz 5mo agoHow dare he ask for evidence!
- ceejayoz 5mo agoThis poster likes to demand evidence of others (https://news.ycombinator.com/item?id=48135626 https://news.ycombinator.com/item?id=48135626) and bristle when the same standard is applied to them (https://news.ycombinator.com/item?id=48137932 https://news.ycombinator.com/item?id=48137932). Someone else did provide evidence, though: https://news.ycombinator.com/item?id=48153756 https://news.ycombinator.com/item?id=48153756
- mentalgear 5mo agoAt this rate, it's almost an equal public-private cooperation - which would actually make more sense as it would give the public ownership over datacenters instead of creepy tech bros.
- cj 5mo agoNo one likes to see big companies avoid taxes. But I don't see what other options are available for states to compete with each other if not through tax breaks. Edit: I suppose if you ban tax breaks, if a state wants to be competitive, they still can but through modifying the tax code for everyone instead of giving certain people exceptions. That doesn't seem like a terrible alternative..
- lern_too_spel 5mo agoCompete for what exactly, in this case?
- deleted 5mo ago[deleted]
- amazingamazing 5mo agoCapital, assets, jobs.
- skywhopper 5mo agoA datacenter complex provides basically none of those things to a state, beyond capital in the form of taxes. But if the state gives tax breaks, then there is no benefit to the state for having a giant warehouse draining its electricity supply and/or polluting its air.
- rybosworld 5mo agoPer $ spent, data centers are one of the worst "job creators". This was well known before the AI boom - see this study from back in 2016: https://goodjobsfirst.org/study-state-and-local-governments-pay-2-million-job-tech-giants-data-centers/ https://goodjobsfirst.org/study-state-and-local-governments-... The numbers are even less favorable today.
- amazingamazing 5mo agoSure, but the alternative is zero.
- htrp 5mo ago> Entergy plans at least three new combined‑cycle gas plants totalling ≈2.26 GW specifically to serve Hyperion, with additional plants in the wider “AI build‑out” pipeline. https://spectrum.ieee.org/5gw-data-center https://spectrum.ieee.org/5gw-data-center
- axpy906 5mo agoWill the earth’s climate get tax breaks too? What about the people living around these and paying for taxes. What about zero sum game we have here.
- charcircuit 5mo agoThe climate doesn't pay taxes. Unless the people living around them are investing $200 million into a datacenter they would not fall under the bill.
- imzadi 5mo agoThe blinders on people about these things is insane. I'm in Arizona. We are having a water crisis but they are building data centers and oat milk factories. WTF?
- shimman 5mo agoGood, now start to question why such a system should continue to flourish and not be drowned violently in a bathtub. Neoliberalism is a blight upon the world and it has only been around for 50ish years or so. It doesn't have to be this way.
- jackbrookes 5mo agoThe irony is that beef and cattle feed use vastly more water than oat milk production. Oat milk would help reduce water use if its used as a substitute for dairy.
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- Forgeties79 5mo agoFor those who are unaware, construction of this datacenter has so far been an unmitigated disaster for the community and a fantastic example of how few shits companies like Facebook give when it comes to cutting corners vs. spending money to do things more safely. To say they aren’t taking the community into consideration is an understatement. They averaged 7 crashes a month near the site at the time of this article. The community isn’t even 2000 people. They’d had 1 fatality already by the time this article was written as well. It’s so dangerous the local school has shut down their playground despite being a mile away. If kids being unable to have a basic outdoor recess isn’t enough to make you care I don’t know what will. https://lailluminator.com/2025/11/22/meta-data-center-crashes/ https://lailluminator.com/2025/11/22/meta-data-center-crashe...
- ReptileMan 5mo agoI think that this is one of the cases in which the Fed government should use it interstate commerce clause to prevent the states to compete until rock bottom. The EU has some regulations that forbid state help to private enterprises and they do seem to have some teeth. Nothing wrong with different states having different tax rates, but states should not be allowed to have favorite companies and kill competition.
- dgellow 5mo agoThe US federal admin is all in the grift. Whoever offers the best kickbacks to the president is the favorite company
- jorblumesea 5mo agoWhat's the value add for states and cities? data centers don't create a lot of long term jobs, the skills required are highly specialized and will probably hire out of state. the construction itself will likely hire locals but that can't go on forever. these centers are loud, increase power costs and water usage. feels like short term job creation program at best.
- whimsicalism 5mo agodoesn’t increasing power usage create jobs?
- ceejayoz 5mo agoNot as much as you'd think. Power plants are heavily automated. A complex nuclear plant may provide a couple hundred; a big solar farm might need a dozen or two maintenance staff. You're usually better off landing a new Target.
- junofan 5mo ago> the construction itself will likely hire locals but that can't go on forever Does any construction project go on forever? It’s just a building. Come on.
- jorblumesea 5mo agoright my point is these are 1 time investments, locals will be dealing with the consequences and most of the workers will just leave after the job is done.
- adamredwoods 5mo agoFrom https://sherwood.news/tech/hyperion/ https://sherwood.news/tech/hyperion/ >> Per the report, the package of tax breaks and incentives was achieved through local officials bound by nondisclosure agreements, quietly struck legislative deals, and parliamentary sleight of hand to avoid public scrutiny of the deal. >> So the residents of Richland Parish did not have much of a heads-up on what was coming. No voting, no public interests, only closed-door politics.
- laweijfmvo 5mo agobut there will be voting; all of the elected officials will have to face elections at some point, and voters can put their feet down right now: everyone is voted out.
- nomorewords 5mo agoWhen the damage is already done?
- shimman 5mo agoIt's okay, as the on-going damage continues Americans tend to be well armed enough to go on a few rampages here and there.
- philipallstar 5mo agoThat is how everyone decision works, yes. That's why you want limited government. Voting where you can't vote with your money is a very low-quality, delayed signal.
- whimsicalism 5mo agoTax benefits, if they exist, should be federal - not states competing.
- downrightmike 5mo agoIsn't LA soon to be underwater
- ChiperSoft 5mo agoRichland Parish is pretty far north, so not likely to be under sea water. It is, however, in the Mississippi River delta... so I wouldn't put flooding out of the picture.
- downrightmike 5mo agoWith tornado alley already migrated east, river flooding makes the most sense then
- fullshark 5mo agoWhat's are the positives for local communities for data centers? I see only negatives. At least prisons have to hire people.
- tartoran 5mo agoHigher energy prices. Oh, you mean net positives? I can't see any unfortunately..
- wnevets 5mo agoThe local officials get slightly richer.
- fullshark 5mo agoI'm not that cynical, I think they got stars in their eyes, were charmed at the idea of doing business with big money / tech and didn't do any actual cost/benefit analysis. Maybe they get an opportunity to make a very powerful friend/crony and took it without considering their duty to their constituents.
- wnevets 5mo agoMaybe but also > Per the report, the package of tax breaks and incentives was achieved through local officials bound by nondisclosure agreements, quietly struck legislative deals, and parliamentary sleight of hand to avoid public scrutiny of the deal. [1] [1] https://sherwood.news/tech/hyperion/ https://sherwood.news/tech/hyperion/
- cdrnsf 5mo agoJobs that exist only during construction, ambient noise, higher electricity and water prices. They also get the privilege of living near technology that represents the future: degraded education, unemployment and spiraling inequality.
- selimthegrim 5mo ago
- neksn 5mo agoWhat’s interesting to me is that for you to build a $10B datacenter (or any other business) you are shaken down for over $3.3B.
- bnycum 5mo agoAfter Meta in Louisiana, Amazon is currently building 3 separate data centers across Shreveport-Bossier. Have to imagine they are receiving the same treatment. I’ve driven by the Bossier Parish grounds and the cleared land alone is massive. Each are expected to be 2-3 million sqft.
- arjie 5mo agoInteresting. I think the county isn't getting much in value in return for the datacenter, though the numbers stated in the headline can easily confuse a headline-reader. The $3.3b in tax breaks is on the $30+b of GPU purchases for that location which would normally encounter sales tax and so on. The coverage for that tax break is a state law, it seems[0]: > The company is expected to take advantage of a new Louisiana incentive program, established by Act 730, that offers qualifying projects a state and local sales and use tax rebate on the purchase or lease of data center equipment. Meta is also expected to participate in the state’s Quality Jobs program. So it is entirely normal that the county officials wouldn't know or really get a say, and the county is the one that's missing out on sales tax. The Louisiana governor isn't hiding the fact that they're going to give them tax breaks, though. It's right in their announcement. 0: https://gov.louisiana.gov/news/4697 https://gov.louisiana.gov/news/4697
- gibspaulding 5mo agoThank you for that context. I’m probably going to get down voted for this, but that doesn't sound like a bad deal. They’re giving up tax dollars that the region wouldn’t have received anyway without the project in exchange for a big (admittedly temporary) economic stimulus while the data center is built. I live in a relatively small rust belt town that’s seen several data center projects recently, and while they have slightly increased the cost of electricity, they’re also employing a ton of people at well above market wages, plus bringing in out of town labor who are spending their checks at local businesses and paying taxes on those checks locally. Make hay while the sun shines.
- arjie 5mo agoThe common dangers are: * you offer a tax break to a guy who was going to come anyway * you give away the entire surplus - i.e. the sales tax is how you were going to see things anyway * you don't capture any of the non-tax surplus (i.e. not many jobs, or jobs are all across county lines) Some of these are fine because states should make cross-county decisions but the others are a matter of negotiation and I think states find they see more money if they advertise willingness a priori with a durable promise. Overall, I think it's hard to be in the position. I would probably also do what they did, but if someone used any of those justifications to not do it, I would probably also understand.
- burnt-resistor 5mo agoCorporate welfare that will never be recouped. It's totally corrupt.
- rybosworld 5mo agoLots of American cities and towns are being taken advantage of by the companies building data centers. Question: why are these huge data centers being built in remote regions and small towns? Answer: because the companies building the data centers are essentially getting free power and water at the expense of the area's citizens. The only locals who benefit from these projects are the politicians giving the land away.