Microsoft Sidesteps 1% Data Center Investment Demands as Tax Breaks Top $474 Million
Updated
Updated · Ars Technica · Sep 28
Microsoft Sidesteps 1% Data Center Investment Demands as Tax Breaks Top $474 Million
1 articles · Updated · Ars Technica · Sep 28
Summary
Microsoft representatives at community meetings have struggled to answer how much the company will invest locally, even as church groups and residents press for commitments equal to 1% of data center project costs.
The gap has sharpened scrutiny of Microsoft's “good neighbor” campaign, which promises support for schools, parks and other services but offers few specifics beyond employee-giving programs the company itself says are not enough.
Critics say that vagueness is hard to justify when data center developers already receive large public subsidies: Georgia gave up $474 million in sales taxes in one year and got back $41 million, according to a recent audit.
Indiana shows the longer-term stakes for host communities — Microsoft and peers can avoid the state's 7% sales tax on as much as $13.2 billion of equipment purchases, an exemption that can last 50 years.