It is amazing how this $1.5 data center has shrunk down to $300 million now. They are getting $18 million from the state for phase 1 and who knows how many millions from Altoona. For just 31 jobs.
Facebook to build $1.5B datacenter in DSM
- Thread starter brianhos
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From my work with data centers, all the server people on site really need to do is swap hardware, physically push power buttons, and help vendors set-up new hardware. I assume their server teams that actually apply patches, set up virtual servers, etc. will all be off site.
Also, the whole terrorist threat is pretty small considering you could wipe out one of these datacenters and the web site wouldn't miss a beat.
Also, the whole terrorist threat is pretty small considering you could wipe out one of these datacenters and the web site wouldn't miss a beat.
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Why would you need a cafeteria when there is never more then 20 people in the whole place? A couple of vending machines.
$1.5B probably includes the value of the equipment inside. The DC is a small fraction of that cost.
Wesleybot is actually one of the servers that will be going in the new datacenter so he's just hoping there's a cafeteria.
These things are OK as long as they don't start costing the public more than the revenue they are generating (given all the tax breaks given to get them). For example, will the city/county need to add infrastructure (additional police, fire, utilities, new steets/roads, etc), and will the tax revenue generated by the 31 employees cover any such costs.
The link from DMR said Altoona was giving them a property tax abatement for 20 years. They did not put a $ value on that tax credit.
Keep in mind the eventual property taxes for the facility. You wouldn't believe how much water a data center uses for cooling. So Altoona will see nice revenue from the utility side as well.
I can't believe people are actually complaining about this...they were going to get the deal somewhere. It might as well be central Iowa.
How much actual new city infrastructure will a datacenter employing 31 people require?
Don't forget security workers. Datacenters always need a few Clones21s running around.
According to the article, a 20-year property tax abatement was given by Altoona. It's going to be awhile before anybody makes property tax revenue. And don't be surprised, provided that the facility is still operational in 20 years, if Facebook threatens to move it unless they get more tax abatements.
Is Altoona's water utilitity a money-maker, or is it like many other smaller towns where they are struggling to keep up with escalating costs and just breaking even?
How many cities were seriously bidding for this site?
I'd put a good amount of money that its a BIG money maker. You are correct about small towns and water systems but most mid-to-large cities actually take money from the water fund to pay for other things (even though they aren't suppose to) like roads, city buildings, etc.
I'd be curious to see what Altoona actually had to do (ie. how much did they have to spend) for this facility at this site. It's near the water tower and large pipelines to supply Bass Pro so I'm guessing minimal water improvements were required. I don't believe they have to build new roadways to the site.
So what is the downside?
I guess it comes down to whether there would be any better prospects down the road that could generate more than 30 jobs on 200 acres of land, and not require giving up 20 years of tax revenue. Seems like Facebook is getting alot and not giving much back in return. I'm not a big fan of tax breaks like that when other people still have to pay the bills.
On the other hand, Facebook might be a benevolent corporate neighbor, and do some nice things for the city.
For coolant, why wouldn't they run a closed loop system? Then there's no water charge except for the initial fill, and no sewer.
I would much prefer Iowa to have competitive property taxes with neighboring states so we didn't have to give all these tax breaks. As it currently sits Iowa's commercial/industrial property taxes are much higher in some cases twice as much as neighboring states.
I'm not sure of the answer from the industries standpoint but I'm sure if that were possible, they would do it.
Many of these data centers will require 1 million gallons per day of water. That's a good chunk of change for the water entities.
Meanwhile over in Nebraska, they are the girl wondering aloud why we got asked to the prom and they didn't.
Was Iowa's data center success due to wind energy? - Omaha.com
Was Iowa's data center success due to wind energy? - Omaha.com
