ATLANTA — X, the platform formally known as Twitter, is set to receive a major tax break from Fulton County, following a vote on Tuesday by the county Development Authority.
The board approved the tax break on what has been billed as a $700 million investment by X in Atlanta, in a 6-2 vote despite some objections from members of the public. The break amounts to about $10 million over 10 years.
Much of the company's work in town will revolve around AI, according to a Development Authority fact sheet. A previous vote in December deadlocked at 4-4, the Atlanta Business Chronicle reported then, bringing X back to the board this week.
What this means
Essentially, the company will have its tax bill lowered over the next decade as it would come to an existing data center on Jefferson Street and expand it, focusing on what the fact sheet called "the next generation of high-performance computing infrastructure to develop and train AI products, including Large Language Models and Semantic Search."
No new jobs will be created but 24 existing jobs will be retained.
Why Fulton County made the decision
The Development Authority said a similar location in Portland, Oregon was also under consideration for the proposed $700 million investment. The Business Chronicle reported Wednesday that X Corp. representative Dhurv Batura said the company was prepared to invest in Oregon instead without the tax deal.
According to the Business Chronicle report, Batura said it would have cost 21% more to operate their equipment in Atlanta than in Oregon, where X has an existing tax deal.
The fact sheet from the Development Authority states that "overall economic impact after 10 years with 24 jobs retained is anticipated at approximately $241,271,799." The Development Authority's fact sheet does not explain how it arrived at that figure.
A board member who was in support of the package in December, Kwanza Hall, told the Business Chronicle at that time that it "opens up a lot of opportunities that could create a multiplier effect."
Another Development Authority board member, Laura Kurlander-Nagel, told the Business Chronicle back in December she was concerned about X's financial stability and that if the company chose Portland instead for expansion, "I don't think this is going to be a significant loss to our community if they decide to go to... Portland instead of Atlanta."
Fulton's Development Authority has faced criticism in the past for other tax incentive votes, which some have questioned the necessity of for existing infrastructure. Others have argued the economic impacts of tax deals are overstated while public funds are diverted away from things such as schools, transportation, etc.
Among those who have been vocal with skepticism is Kennesaw State University Professor of Economics J.C. Bradbury, who tweeted, "authorities have been doing this for years all around the state. These bodies don't promote actual economic development and are largely captured by insiders who get tax breaks for connected friends. Georgia should scrap them."
