June 2, 2009
Apple (AAPL: 439.66 -0.74%) is reportedly close to inking a deal in North Carolina to build a massive $1B data center. What’s interesting is that reports are putting economic tax incentives kicked in by North Carolina at a whopping $46M.
If this deal gets inked it would be interesting from two perspectives. First, it would really underscore the rising costs associated with building a data center, and the rapidly increasing demand for them as the explosion of media and cloud computing take place.
Secondly, it would really emphasize the lengths some states are willing to go to, to attract jobs. The reality is that $46M would be spread over 10-years, but a data center generally doesn’t produce a whole lot of employment once construction has been completed. A typical data center may have only 40-50 employees. Assuming this will be a massive data center given the costs, and will need to have twice as many people, the economic tax break would still amount to about $460K per employee over the 10-year period. Not to mention the huge power resources a data center draws!
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