Data center tax breaks show rift over economic strategy – the "heroin drip of government"

A major Internet data center developer’s decision to expand into Michigan as long as it receives lucrative tax breaks is testing the economic development strategy of Gov. Rick Snyder, who has called them the "heroin drip of government."

Lawmakers are rushing to ensure that Las Vegas-based Switch locates a mega-campus of computer servers near Grand Rapids, passing bills to exempt the company and its clients from sales, use and business equipment taxes. The project is billed as a way to land not only Switch’s foray into the eastern U.S. but big "co-located" businesses such as eBay, Shutterfly and PayPal — the high-tech industry that auto-centric Michigan so desperately wants.

By DAVID EGGERT Associated Press

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