Gavin Baker Walks Back Data Centre Criticism, Says Industry Has Addressed Key Concerns

Technology investor Gavin Baker has revised his recent comments on data centres, saying he regrets the tone of his earlier remarks and acknowledging that concerns about water use, taxes, employment, electricity prices and environmental effects were reasonable around 18 months ago.

Baker had previously taken a strongly pro-data-centre position, arguing that politicians opposing such projects were unqualified for public office. In his latest remarks, however, he adopted a more measured position, saying projects with appropriate safeguards have increasingly addressed many of the concerns surrounding the industry's expansion.

According to Baker, the debate should now take into account how data centre projects have developed over the past 18 months.

Baker points to water and tax benefits

Water consumption has been one of the major concerns surrounding large data centres. Baker argued that US data centres use considerably less water than golf courses and said newer facilities are increasingly adopting closed-loop or recycled water systems.

He also suggested that communities approving new facilities should require such systems where possible.

On taxation, Baker said focusing only on sales-tax exemptions can give an incomplete picture of the economic contribution from data centres. He pointed to property taxes as a major source of revenue in communities where large facilities have been established.

He cited Loudoun County in Virginia, where data centres contribute roughly $1 billion a year in property tax revenue, and Quincy, Washington, where data centres account for more than half of the property-tax base, according to his post.

Data centres create demand for skilled workers

Baker also highlighted employment as one of the strongest arguments in favour of the sector.

He said demand has increased for electricians, plumbers, welders, HVAC technicians and contractors as data centre construction expands. He argued that the employment impact is not limited to initial construction because facilities require upgrades and expansions over time.