This Data Center is Getting a $77 Million Tax Break to Create One Job

In Orangeburg, New York, the Rockland County Industrial Development Agency (IDA) recently approved a nearly $77 million tax break for JPMorganChase's data center expansion, a project that promises to create only one permanent job. This subsidy, primarily sales tax exemptions on materials and equipment for the billion-dollar facility, has been criticized by watchdog groups like Good Jobs First and Reinvent Albany as the largest of its kind per job in the country, with approximately $40 million withheld from state coffers. Steven Porath, executive director of the Rockland County IDA, defended the deal, arguing that while few permanent jobs are created, the project generates over 1,400 temporary construction jobs and ongoing work for skilled trades. He emphasized that assessing subsidies solely on a cost-per-job basis is an "outdated" method that fails to account for other economic benefits to the community. JPMorganChase, which did not respond to inquiries, expects the facility to be complete by 2028 and will serve the finance industry's computing needs, including for AI. The Orangeburg area has become a data center hub, attracting companies like Bloomberg, Morgan Stanley, Natixis, CoreWeave, and DataBank, all of whom have secured similar IDA deals. Residents and advocacy groups, including Food & Water Watch, express significant opposition, raising concerns about potential water contamination, increased utility costs, and noise pollution. They advocate for a halt on all data center projects until environmental impacts are fully assessed, and state Senator Rachel May and Assemblymember Anna Kelles have introduced a bill to cap IDA subsidies and increase environmental oversight for large facilities. The ongoing debate highlights a broader statewide discussion on how to balance economic development incentives with environmental protection and public interest.