Amazon uses its big size and local government interest in having a Amazon data center add to its local economic base, by signing low cost electrical rates. Utility companies than get local government to allow them to raise the public's rates to level out this loss income. Local government says this is good for jobs, community, but data centers have limited impact.

Filled with data on costs and infrastructure, Mya Frazier creates a picture as to why Amazon is receiving these deals from state legislators. Amazon data centers use 2% of total electricity but each data center only provides maybe 50 jobs. In rural areas, the cost of carrying the electric bills due to discounts may be harming the local economy rather than helping.

This is an interesting story to follow as more and more state politicians try to win bids for Amazon data and fulfillment centers to come to their state. I do believe the tax incentives these states are offering Amazon in an attempt to win the bids have become ridiculous and often at the expense of the taxpayer. This article covers a slightly different issue around the use of the electric grid and public utility, but it all has to do with state politicians wanting to be able to turn to their constituents and says "look at all the jobs I created by getting Amazon in here."