> In general, data centers only pay corporate income tax if they generate revenue. Not all data centers do this because many don’t sell goods or services; they simply house servers. By qualifying as business expenses rather than revenue generators, they reduce the tax liability of their parent companies.
> Thus, when it comes to income tax, at least, many data centers – especially hyperscale data centers owned by large companies – don’t generate tax revenue because they don’t generate direct operating income.
alt Hacker News
> In general, data centers only pay corporate income tax if they generate revenue. Not all data centers do this because many don’t sell goods or services; they simply house servers. By qualifying as business expenses rather than revenue generators, they reduce the tax liability of their parent companies.
> Thus, when it comes to income tax, at least, many data centers – especially hyperscale data centers owned by large companies – don’t generate tax revenue because they don’t generate direct operating income.