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Joseph Mangano's avatar

I'm glad you stressed within the piece how the data shows that for all this lost revenue, comparatively few permanent full-time jobs are created by these data centers. And this is before the myriad concerns with the proliferation of AI, not the least of which is throwing fuel on the fire that is the climate crisis.

JenneJ's avatar

I'm too old for this "AI Boom" to really effect my life much, but these kids better be careful. They are playing with a technology they do not understand and it very well may bite them in the ass. For the longevity and prosperity of the human race, AI is a very bad idea, even the people developing it say so. And the energy suck it's going to require will significantly change the planet we live on; well, that they live on.

Judith Swink (CA)'s avatar

Both energy (which can be fixed by using renewables like wind and solar but will they?) and water (which is in extremely limited supply in most areas these data centers are being built).

JenneJ's avatar

They'll need to figure out how to do whatever they are doing with sea water, because potable water is already in very limited supply worldwide.

The technology for non-petroleum based energy, or the stomach to develop more nuclear energy, will have to increase exponentially if they expect those sources to support AI. Bitcoin alone already sucks up as much energy world-wide as a mid-sized country!

Katy Bolger's avatar

And where does all that tax break money go? Are we to assume that it goes back to the workers of these companies? SPPPpptttt. Sorry, I just spit out my tea. No, it goes into the pockets of Bezos, Uckerberg et al. All the oligarchs, already worth billions, are sucking the very basis of a state's revenue: taxes. And what are the states getting for it? Pollution, noise, energy drain and who knows what other financial burden and environmental damage is being done. (We know, we know.)

And yet, those who buy - with a dollar and a dream - a lottery ticket, well, those dollars are heavily taxed. Good. When someone buys a pack of cigarettes or a bottle of booze, heavily taxed. Gasoline, taxed. Clothing, taxed. You know what else is taxed? The sweat off my brow. Every time I go to work, I am taxed.

And yet, these super rich a-holes, are sitting in one of their many many homes on their private islands or mountaintops and not wondering for second whether they can pay the light bill on the mansions. No, they're fine, because all of these governors, for a flash of green, lifted their skirt when wined and dined, maybe a flattering word or two, even. There's a name for that.

Nancy's avatar

The same is true for these cruel, inhumane (I realized I repeat myself), horrifying private prisons. People are getting rich while others are dying and suffering greatly; and they simply do not care and neither does this administration. I hate so much about what's happening to our country, but for some reason, the purposeful cruelty keeps rising to the top for me.

Katy Bolger's avatar

Maybe "purposeful cruelty" rises to the top of your immorality meter and sets off alarms because we were taught that Americans were not capable of the same things that Nazis were, or other despotic regimes that tortured, disappeared and crushed dissent in their own countries. Maybe because we had some shame for what we did to Japanese Americans in WWII by destroying their livelihoods, separating families and putting them in prisons for the duration of the war.

But let's talk about words: prisons, detention camps, determent camps, concentration camps, death camps. What is the administration calling these hellholes today? Maybe "halfway to hell camps?" What are the magats complaining about today? That we are feeding detainees more than 1500 calories a day? That a doctor visited the "camp?" That a detainee was allowed to give birth in a prison on American soil?

Sbara's avatar

Are golf courses taxed?

Rickey Woody's avatar

Shareholders, executive pay. We all know they have so much to lose...Be sure you have not taken a drink.....!

Katy Bolger's avatar

Well bless me, Mr. Woody, that's an adorable little umbrella in that tall refreshing libation.

Jean E Hayes's avatar

Erin Brockavitch is collecting information on the impact on communities all around the US for public information and pushback.

Robert's avatar

One of the most timely investigative reports !

Thanks Judd! Everyone pass this on!

Joseph solid points too!

Elaine Cimino's avatar

States across the country are finally asking whether subsidizing AI data centers makes any economic sense.

Ohio lost more than $1.5 billion in a single year. Virginia forfeited $1.6 billion. Texas topped $1 billion. The backlash is growing because taxpayers are funding some of the wealthiest corporations on Earth while receiving very few permanent jobs in return.

New Mexico’s exposure may be even more troubling.

Project Jupiter’s financing structure is estimated to displace roughly $7.27 billion in potential public tax value while returning about $159 million in PILOT payments over the life of the project — a recovery rate of about 2%.

But the biggest issue isn’t the money.

It’s the water.

Ohio can replace tax revenue. Virginia can rewrite tax policy. New Mexico cannot replace a depleted aquifer.

The question is no longer how much public money we are willing to spend on AI. The question is whether a water-scarce state should be expanding an industry whose growth depends on ever-increasing energy consumption, cooling demand, and infrastructure buildout.

Public systems absorb the risk.

Private capital captures the return.

At some point we have to ask whether the AI boom is creating public prosperity—or simply accelerating the liquidation of public resources.

Linda Slater's avatar

It is the environmental impact that cannot be overstated. Not only are these tech oligarchs taking in billions for wrecking vast areas water supply, power supply( which WE pay for in huge increases in OUR power bills) but these data centers produce intolerable noise and air pollution. The costs can be recovered eventually. The destruction of the environment cannot.

RD's avatar

What are all these data centers good for? Looks like a lot of redundancy with many bankruptcies on the horizon. Get in quick and out before the crash?

Joe Weicher's avatar

Tax breaks, exemptions, incentives for corporations.

The Supreme Court has informed us that corporations are people. Looks like it would be better for people if they were corporations.

Allen's avatar

I live in Texas. We need those tax dollars for our schools. Our Corrupt Statehouse is a poster child for graft. Stop voting for people that want to rob you, kick you and piss on you.

Patrick Thompson's avatar

Everyone talks about the huge amount of electricity and water these Data Centers use.

What about noise? Noise, noise, noise 24 hours a day 365 days a year. Constant noise from the air conditioner units, lots of them and the cooling towers. Oh, and don’t forget the back up generators.

Judith Swink (CA)'s avatar

And where does that heat go? Into the atmosphere.

James Burnham's avatar

We subsidize the rich and then forget to tax them, when they were hardly taxed to begin with. It's not just near term tax breaks for the companies that leave ordinary tax payers holding the bag or having to sacrifice services. It's long term untaxed wealth that denies universal health care, endangers Social Security, and enables liars and thieves to create an authoritarian state and destroy the commonwealth. How stupid do they think we are? Very stupid. Because we are.

PJ's avatar

Thanks so much for this timely reporting!

Kathy Koblik's avatar

As usual - thank you for your scary, timely (sickening) reportage. Such a service you are doing!

Seems like one job is expanding - lobbying. Hmm - wonder what major you select? All this effort to stack the decks for the wealthy. All the people financially being squeezed. I'm having survivor guilt with a place to live and things to eat and comfort.

KJR's avatar

Great report! Thanks for showing where real pressure should be directed. Is there a map of AI-friendly states?

mark's avatar

Subprime mortgage crisis in 2008 resulted from easy money for mortgages. That easy money fueled a bubble in home building. When the Subprime mortgage crisis hit there were a lot of partially completed home that were never completed. The data centers being built today will be made obsolete by better,faster,cheaper AI tools. AI of today will excel as an "idiot savant" (exhibiting extraordinary ability in a highly specialized areas). The general intelligence AI is not happening any time soon. The more specialized the job the more likely it will be done by an AI machine.

David Shible's avatar

Tax breaks = jobs creating talking points for politicians that too many people buy into. I understand the need to provide incentives to lure businesses into a state, county, city, etc. Somebody smarter than me will have to come up with a better formula that provides the lure without costing so much.

One Federal government expenditure I could back is a large meaningful monetary prize to the American person(s) or organization(s) that can reduce the data center industries' adverse environmental and citizen impacts to a meaningful figure. Meaningful meaning as close to zero as possible. The devil is in the details, but again, people smarter than me, can figure this out.

See a pattern here? I'm only smart enough to ask the questions.