N.C. sold itself to Google for warehouses
By: Charles Dahan, Eye Candy
Issue date: 1/22/08 Section: Opinion
Last year North Carolina's state government offered Google a tax break for up to $260 million over 30 years. In return those politicians increased property values.
Not of property in North Carolina - but in Mountain View, Calif. And many outstanding tech companies, from Motricity to SAP, located in the Triangle are offering handouts to California companies instead of supporting native businesses and educational opportunities.
For $260 million, North Carolina is not receiving one ounce of engineering might or investment by Google to establish entrepreneurial centers for technological, engineering or business development. The headquarters of the company isn't relocating. Google isn't even promising to hire a single computer science graduate to work on the next big product, service or advertising innovation in Lenoir, where the massive server farms will be built. For $260 million, you'll be receiving warehouses.
Granted, these aren't any old warehouses. These warehouses house servers that store the Internet activities of anyone who uses Google products, as well as cached copies of the Internet. In language politicians might comprehend, this is the sewage which flows through the series of tubes.
Google could place these servers anywhere. They placed them in North Carolina because politicians made land and labor cheaper than what can be found in China, India and Bangladesh. Though the manufacturing might of North Carolina is certainly on the decline, the state government is prolonging the economic hardship of rural areas by replacing jobs in tobacco warehouses with jobs in server warehouses.
Server maintenance isn't technologically challenging; a Best Buy Geek Squad member possesses the requisite expertise. About 200 employees will run these servers. $260 million distributed to 200 employees over 30 years would result in an annual salary of about $43,500, while Google plans to pay just more than $48,000. Not exactly a bargain, particularly considering this handout is going to a corporation based in another state.
Not of property in North Carolina - but in Mountain View, Calif. And many outstanding tech companies, from Motricity to SAP, located in the Triangle are offering handouts to California companies instead of supporting native businesses and educational opportunities.
For $260 million, North Carolina is not receiving one ounce of engineering might or investment by Google to establish entrepreneurial centers for technological, engineering or business development. The headquarters of the company isn't relocating. Google isn't even promising to hire a single computer science graduate to work on the next big product, service or advertising innovation in Lenoir, where the massive server farms will be built. For $260 million, you'll be receiving warehouses.
Granted, these aren't any old warehouses. These warehouses house servers that store the Internet activities of anyone who uses Google products, as well as cached copies of the Internet. In language politicians might comprehend, this is the sewage which flows through the series of tubes.
Google could place these servers anywhere. They placed them in North Carolina because politicians made land and labor cheaper than what can be found in China, India and Bangladesh. Though the manufacturing might of North Carolina is certainly on the decline, the state government is prolonging the economic hardship of rural areas by replacing jobs in tobacco warehouses with jobs in server warehouses.
Server maintenance isn't technologically challenging; a Best Buy Geek Squad member possesses the requisite expertise. About 200 employees will run these servers. $260 million distributed to 200 employees over 30 years would result in an annual salary of about $43,500, while Google plans to pay just more than $48,000. Not exactly a bargain, particularly considering this handout is going to a corporation based in another state.
Viewing Comments 1 - 7 of 11
Thomas
posted 1/22/08 @ 8:07 AM EST
Ok first you need to learn a little more about what Google actually does. From the "facts" you list in your article you obviously dont understand what a data center is actually used for. (Continued…)
wut?
posted 1/22/08 @ 9:42 AM EST
Your article makes absolutely no freggin sense AT ALL.
Did you know that Hickory, less than 25 miles away is home to the worlds capital for producing fiber optic cable with Corning, Alcatel, and CommScope here in the area. (Continued…)
Yes...
posted 1/22/08 @ 10:24 AM EST
The SONET rings and other existing infrastructure mean there's an incentive for Google to move to Lenoir, unlike idiot politicians feed us, such as Google will 'jump start' the local economy with tech jobs. (Continued…)
T.J. Rohr
posted 1/22/08 @ 12:43 PM EST
I'm on the Lenoir City Council and I voted against the incentives given to Google. I was the only elected official to do so. I'm very glad Google is here, but I didn't see the need to give them 30 years of almost no taxes. (Continued…)
Thomas
posted 1/22/08 @ 5:31 PM EST
Elliot, I know exactly what Google does.
I asked that question because I already knew the answer, it was completely rhetorical.
Im an IT professional and Information Science major. (Continued…)
Stuart Eichert
posted 1/24/08 @ 12:50 AM EST
I agree that government in North Carolina should not be handing out subsidies to Google. Disagree that operating Google data centers is the equivalent of operating a tobacco warehouses. (Continued…)
mountain viewian
posted 1/24/08 @ 10:20 AM EST
aw, google is awesome. i live in MV and we get free wireless in all public areas. they've done a lot for our area. i think google will be good for NC. (Continued…)
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