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North Carolina is home to a new massive server farm facility for Google

Google announced this week that it will be investing roughly $600 million USD in building a new data center facility in North Carolina. The new facility will hold server farms that Google will use in its next generation of search and database-intensive applications, particularly its new "Similarity Engine," which removes redundancy in its crawls and results delivery.

Officials at Google indicated that the new facility will hold slightly over 200 employees, most of whom will be network and server specialists. Google's primary research and development facility will still remain in California. Google also has another facility in Arizona, which it had been working on last year.

The state of North Carolina is definitely pleased with Google's announcement, but Google did not just decide to open its doors in North Carolina on a whim. Earlier this year the state put forward roughly $4.8 million as part of an incentives package for Google. The incentives package can grow up to $100 million if Google decides to stay in the region.

According to North Carolina state governor Mike Easley, the state is jumping at the opportunity to work with Google because there have been lots of employment layoffs in the state this past year. "This company will provide hundreds of good-paying, knowledge-based jobs that North Carolinas citizens want. It will help reinvigorate an area hard hit by the loss of furniture and textile jobs with 21st century opportunities," said Easley.


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By thomaspurves on 1/20/2007 9:04:37 PM , Rating: 2
There is also the winner's curse effect that can arise in these situations:
http://en.wikipedia.org/wiki/Winner%27s_curse

basically, the propensity that the winning bidder of any auction is the one that most over-bid for the item at stake
(e.g. possibly with all good intentions but nonetheless the city/state that most overestimated benefits and underestimates the liabilities is most likely to put in the highest bid)



By Ringold on 1/20/2007 9:20:53 PM , Rating: 2
I don't see how any of this applies here though.

If they hadn't bid what they did, Google could've taken its datacenter elsewhere. Indiana, perhaps, or Toronto or Taipei or Hong Kong or Bangalore. In that case, their revenue would've been zero from idle land, no additional jobs created.

Even if they exempted Google from all taxes, these servers don't install themselves, they don't maintain themselves, and all the insanely expensive equipment in a datacenter that supports the servers don't either. All these people take home good pay. They won't be ordering their pizza from California, they'll be ordering it from down the street from their new homes (which will have property taxes). They'll eat, shop, and recreate in the vicinity, spawning more jobs, supporting local business, driving more prosperity. Meanwhile, while the government could've given Google a free ride (which SC didn't do), they'd be making dough hand over fist with all the OTHER activity going on that wouldn't have otherwise.

It's win/win! It's a win for the USA, too, for keeping a datacenter like that on home turf. And a win for Google; keeps us enthusiasts happy thinking its a more American company. It's a win/win/win/win, then, I think?


By Oregonian2 on 1/22/2007 3:04:42 PM , Rating: 2
Assuming they connect the server farm to the world through a network, there may also be a bit of money being made by the local telecom infrastructure companies too. Having it sit there unconnected would seem like a shame. :-)


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