Google to build $600M datacenter in South Carolina

South Carolina's government has announced that Google plans to invest $600 million in a new datacenter on a 210 hectare site at the Mt. Holly Commerce Park in Berkeley County near Charleston, the land for which was purchased by a Google subsidiary, Arum Composites, last year. Google plans to use as many local vendors as possible to build the center to maximize the boost to the local economy. The center is expected to lead to the creation of an initial 200 jobs and should see Google paying just under $2 million per year in property taxes to the county. The Internet search and advertising giant will be partially reimbursed by the state for site preparation and infrastructure as part of South Carolina's Job Development Credits incentive program. The state legislature has also updated the tax rules so that electricity and capital investment in equipment necessary for data centers used in the web search portal and internet service provider industries are exempt from sales tax. Additionally Google is looking at a second site in South Carolina near Columbia, the state capital.

News source: InfoWorld

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The state legislature has also updated the tax rules so that electricity and capital investment in equipment necessary for data centers used in the web search portal and internet service provider industries are exempt from sales tax

WTF??? How can they get away with that?

There are may special tax exemptions for big industry to stimulate local economies and to line the pockets of politicians who support these measures in the form of kickbacks as future campaign donations. Small businesses and the average citizen take the squeeze.

Budious said,
There are may special tax exemptions for big industry to stimulate local economies and to line the pockets of politicians who support these measures in the form of kickbacks as future campaign donations. Small businesses and the average citizen take the squeeze.

Isn't it anti-competitive practice though? A company couldn't get away with this kind of thing. Other states/countries must be furious with them.

travelcard said,

Isn't it anti-competitive practice though? A company couldn't get away with this kind of thing. Other states/countries must be furious with them.

Happens every day. Microsoft does this, Boeing does this, heck, even Walmart does this in many cities they build stores.

travelcard said,

WTF??? How can they get away with that? :blink:

its a win-win situation, Google can get the hardware from wherever they want but if they buy it from the reion they boost the area's economy, however in exchange for Google's kindness the state allowed them to not pay taxes.

South Carloina isn't exactly the tech capital of the US so I woudln't be surprised if Google "shopped around" for which region would give them the best deal.

black_death said,
South Carloina isn't exactly the tech capital of the US so I woudln't be surprised if Google "shopped around" for which region would give them the best deal.

I'm from Georgia and the state here has publically funded state grants (Hope Grant) for technical students at community colleges to train un-skilled workers with certifications and associate degrees in areas such as automated manufacturing which has in turn drawn in large producers and resulted in projects such as Pirelli Tire building it's first U.S. plant here. Other large name manufactures such as Suzuki have also developed an ATV production plant in our area as well as several other component manufactures that provide components for automobile plants over in Alabama. Tax breaks and publically funded education for technical training draw in the large corporations which in turn help build the local economies and create jobs. Unfortunately this also comes off as lopsided and does not benefit the small business owners or typical taxpayer and can meet opposition for these reasons.

black_death said,
South Carloina isn't exactly the tech capital of the US so I woudln't be surprised if Google "shopped around" for which region would give them the best deal.

You people been missing the Neowin news? Google already did their shopping. South Carolina offered the best deal in terms of money to have Google build their new site there. Hopefully, the money spent will benefit them by spurring growth to the state, jobs, and the like.