“La Porte, Indiana, is a small city between South Bend, Indiana, and Chicago, Illinois. The recent announcement that Microsoft is investing over a billion dollars into a vast new data center campus in La Porte is expected to be transformational for the town of 22,000 people.
Microsoft was given a 40-year tax abatement on equipment, a renewable state sales tax exemption through 2068, and just $2.5 million of payments in lieu of taxes (PILOT) over four years—roughly 30 percent of what it would normally owe. After that? Nothing. Local utilities would cover the infrastructure.”
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“there’s infrastructure. Data centers demand massive utility upgrades: power lines, substations, water lines, fiber, and roads. These are usually paid for by local utilities, state infrastructure grants, or ratepayers. In Kansas City, Evergy announced it would build two new power plants largely to meet data center demand—costs to be passed on to customers. In Northern Virginia, Dominion Energy’s data center grid upgrades are now a line item in statewide electric rate hikes.”
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“these deals are struck behind closed doors, insulated from scrutiny, and built on the assumption that any growth is good—even if it’s paid for by reaching into your neighbor’s wallet.”
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“Analysts project that data center capacity will more than triple by 2030 and estimate the U.S. will need to reach 35 gigawatts of capacity by then—double today’s total. The surge is largely driven by artificial intelligence (AI), which alone could account for 70 percent of all data center demand by 2030. These facilities already draw more electricity than some nations, and Goldman Sachs projects they’ll consume up to 9 percent of U.S. power by decade’s end. New builds are booming—yet much of that construction is being underwritten, piece by piece, by state and local governments chasing the illusion of growth.
Data centers are not a menace. Left to the market, they’re a genuine asset—critical infrastructure in a country trying to stay competitive in the age of AI. We don’t need to bribe the richest companies on earth to build them.”
https://reason.com/2025/05/06/the-new-stadium-scam-is-a-server-farm