Amazon will spend $16 billion on two new data centers currently under construction in Madison County. The original investment was $10 billion. Yahoo News (courtesy of Bloomberg News) reported:
Amazon.com Inc. is expected to spend 60% more than previously announced on a massive data center project in Mississippi, underscoring the escalating costs for artificial intelligence infrastructure. The company will spend $16 billion to construct two data center campuses north of the state capital Jackson, according to state planning documents reviewed by Bloomberg. When Amazon announced the project a year ago, the company put the price tag at $10 billion and called it “the single largest capital investment in Mississippi’s history.”... But despite all the tax breaks and other incentives being lavished on the project, the state expects most of the jobs created to be filled by contractors, the previously unreported documents show. They also reveal how data center costs keep getting bigger, owing in large part to the need for expensive equipment from suppliers like Nvidia Corp. The largest chunk of Amazon’s planned spending — $7.2 billion — will go toward servers, fiber-optic cable and other technology infrastructure, according to the January-dated state planning documents. The state expects the $16 billion to be spent by the end of next year. Mississippi gave Amazon tax breaks and $278 million of incentives in the form of infrastructure upgrades and workforce training. Most of the state’s direct outlay — $172 million — is earmarked for proposed sewer upgrades such as a new wastewater treatment facility that can handle 8 million gallons per day, the documents show. Data centers generate significant wastewater keeping the facilities and power-hungry servers cool. In lieu of taxes, Amazon will pay fees to the county, the documents show. During the first five years of the project, the state estimates Amazon’s fees will be about $209 million, according to the Mississippi Development Authority spokesperson. The state has said these fees will repay much of the incentive package and that the project will boost ancillary industries such as construction, housing and entertainment.... Amazon has said the Mississippi project will create at least 1,000 full-time jobs. But the documents show that almost two-thirds of them will be filled by contractors, not Amazon employees with company benefits. Full-time headcount, including contractors, will hit 1,000 in 2027 then remain flat, the state documents show. The workers will initially make about $80,000 a year. Rest of article.
18 comments:
Does this mean my Prime membership will increase AGAIN?
Skynet
Keep those obnoxiously humming data centers in Madison County where everyone there can enjoy the incessant noise pollution.
Nobody can say with any degree of accuracy how many permanent jobs AI will create or for that matter, how many it will ultimately eliminate. It's new stuff.
@9:17 No. These datacenters are for AWS. Amazon makes more money selling rackspace than it makes selling drop-shipped crap from China or making garbage TV shows like Rangs uh Powuh
And your taxes too, but at least Jeff Bezos can’t get his new super yacht.
Housing apartments trailers - canton may actually be viable
60% increase in costs that quickly. Way to go MAGA!
Nvidia currently has the lead and Jenson Huang’s company deserves the kudos. But Intel is close to leapfrogging AMD’s Radeon with their latest gen Intel Arc platform that was previously code named “Battle mage” which is currently sold out everywhere except scalpers. TSMC and Intel will soon complete their new foundries in the USA.
Watch this video by der8auer if you have never seen a Taiwan factory that makes computer parts. It is heavily automated and can easily be done in the USA. Taiwan factories are heavily automated and aren’t sweatshops like in the People’s Republic of China.
Ask the MadCo tax assessor if an extra $6 billion of assessed valuation sounds like a bad thing. Jesus Christ, there's some f'n hayseeds posting on this here blog.
@3;12 but they arnt paying taxes....
"In lieu of taxes, Amazon will pay fees to the county, the documents show. During the first five years of the project, the state estimates Amazon’s fees will be about $209 million, according to the Mississippi Development Authority spokesperson."
Five years...five years...why does that sound familiar? I wonder...what's the depreciation time of computer equipment and other tech? Well, slap my ass and call me Sally! What a coincidence! Ya know not to be a Debbie Downer but I'm beginning to suspect that maybe Amazon's army of CPAs, tax accountants and lawyers, consultants, finance people, etc. might be a bit more sophisticated than our folks about all this corporate high-finance stuff.
Look, on nothing more, anything or anyone who brings 10 (or 100 or 1000) jobs into our state is great. But if those ten $80K-a-year jobs cost Mississippi $1,000,000 a year (or $10 or $100 million a year) or more up front than will amortize to get them here, it's only a great thing to the politicians and bureaucrats who know a lot of folks will fall for their BS version of things.
The bottom line is this COULD be a good thing for Mississippi depending on exactly how it all plays out, but no matter how it does play out it will not be anything remotely close to $10 or $16 billion spent in or coming into Mississippi.
This was a bad deal for the state. Amazon played us like a fiddle so the politicians can pretend they did something. Tate still hasn’t even announced how much Brett Favre got in this deal, we all know he gets a cut of any state handouts.
9:36, have you been an idiot since birth? Or did you simply mature into a full blown idiot at some point? Amazon will pay a fee that is BASED ON WHAT WOULD BE REPRESENTATIVE AD VALOREM TAXES BASED ON ASSESSED VALUATION FOR TEN YEARS and then Amazon (or successor owner) will pay commensurate ad valorem tax based on assessed valuation thereafter.
"9:36, have you been an idiot since birth? Or did you simply mature into a full blown idiot at some point? Amazon will pay a fee that is BASED ON WHAT WOULD BE REPRESENTATIVE AD VALOREM TAXES BASED ON ASSESSED VALUATION FOR TEN YEARS and then Amazon (or successor owner) will pay commensurate ad valorem tax based on assessed valuation thereafter."
I'm not 9:36, but lemme guess - you done got you a Masters in Financin', Drankin,' an' Shit from Ole Miss? Aside from anything else, Amazon would not do something like this without a whole bunch of folks crunching all sorts of numbers and if those numbers were not totally favorable to Amazon - fuck everyone and everything else - it would have been deader quicker than a possum on an inner-city Interstate during rush hour.
And speaking of idiots, anyone who thinks Madison or Mississippi folks put the britches on Amazon in this deal, they are idiots and morons. That doesn't mean it was BAD for Mississippi, but you can bet your ass, your house, your truck AND your dog it wasn't bad for Amazon.
Are these like Nobama's "shovel ready jobs?"
Sure they will, Goober!
Every lawyer in this state with any knowledge of tax law, combined, can't compete with the knowledge and sharp-knife of one lawyer who participated in this screwing this state is about to get.
Remember the vacuum cleaner company who promised to bring jobs to the 'Mississippi Coast' who disappeared and moved to Tennessee following Katrina.
There's a reason these people target the backwoods. And you think they will import their prestigious corporate staff (and families) to Canton, Mississippi?
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