In the national hysteria over data centers, it looks like one locality has decided to use this as an opportunity to invoke economist Thomas Sowell’s famous line:
There are no solutions, only tradeoffs.
Tonight, Chesterfield County will consider whether or not to use tax revenue from data centers to lower the rate of taxation on cars.
Here’s an article from online outlet – the Richmonder -that discusses the likely vote:
Chesterfield proposes using data center revenue to lower car taxes
proposal to use tax money collected from data centers to reduce the car tax rate, a move the county says would give residents a direct financial benefit from the facilities.
The current car tax rate in the county is $3.25 for every $100 of assessed value. According to a county press release, the data center dollars could reduce it to as low as $1.79 following the full build-out of Google’s three planned campuses.
The tradeoff seems to be a solid one – finding a benefit from data centers to overcome the absolutely HATED car tax.
From the article – not just a benefit but a “direct financial benefit.”
Quoting Dr. Peter Venkman from Ghostbusters:
If I’m wrong, nothing happens! We go to jail—peacefully, quietly. We’ll enjoy it! But if I’m right, and we can stop this thing… Lenny, you will have saved the lives of millions of registered voters…
(I’m just thrilled I got to quote Ghostbusters! Thank you Chesterfield Board of Supervisors!)
<sniff> I’d also like to thank the Academy…
Sorry…got carried away…
<end scene>
This could be an excellent reframing of the debate since some politicians are looking at highly misleading polling that ask respondents whether or not they want data centers in “their neighborhoods” or “communities.”
Seriously?
The vast majority of data centers are zoned industrial, not residential.
Quoting again from the miniseries “The Crown” when Prime Minister to be Harold MacMillan says to the soon to outgoing PM Sir Anthony Eden:
There is no justice in politics.
Or push polls.
Some politicians are caught in today’s Wind Sock Populism and are not seeing how data centers are used almost every minute of every day by consumers and, yes, registered voters.
What’s the tradeoff if the Supply of data center computing power doesn’t keep up with consumer/registered voter Demand?
Prices go up.
Period.
Supply and Demand ain’t theory – it’s law.
You think tariffs increase inflation? (yes)
Or wars on Iran make gas prices go up? (also yes)
The wind will shift quickly indeed and there will be no justice.
How about when the prices or fees on these everyday uses go up?
20 Everyday Consumer Uses of Data Centers
- Text messaging & instant messaging
- Internet search
- Social media
- Streaming TV & video
- Streaming music & podcasts
- Credit and debit card transactions
- Online and mobile banking
- Digital payments & mobile wallets
- GPS, maps & navigation
- Online shopping & e-commerce
- Cloud photo & video storage
- Video calling & conferencing
- Online gaming
- AI assistants & generative AI
- Smart-home devices
- Healthcare portals, records & prescriptions
- Travel reservations & transportation
- Food ordering & delivery
- Work, school & cloud productivity
What political consultant wouldn’t want to run ads against opponents who made those prices go up?
Those ads will write themselves and not figuratively.
Bob Dylan – Blowin’ In The Wind
Ladies and Gentlemen, Mr. Frank Sinatra…
Summer Wind
And to the Chesterfield County Board of Supervisors…
Let’s Groove Tonight!
YES – Earth, Wind, and FIRE!
