Statements on Job Creation Related to AWS Data Centers in New Albany, Ohio

 


Amazon Web Services (AWS), the cloud computing arm of Amazon, has expanded significantly in New Albany, Ohio, as part of the "Silicon Heartland" initiative, which benefits from the broader ecosystem spurred by the CHIPS and Science Act (2022). While AWS does not receive direct CHIPS funding (reserved for semiconductor manufacturing like Intel's nearby fabs), its data centers support AI and cloud needs tied to chip production. AWS has secured substantial state incentives, including tax abatements under Ohio's Data Center Tax Abatement Program, with certifications requiring job creation commitments. As of July 2025, AWS operates multiple facilities in New Albany but faces criticism for modest job outcomes amid global layoffs (over 27,000 since 2022, including hundreds in cloud units in July 2025) and perceived overpromises to justify subsidies totaling billions in tax breaks. Critics argue these statements, certified in incentive applications, are misleading given low direct hires (e.g., ~100 jobs per $1 billion invested) and project pauses elsewhere.

Below is an outline of key statements on job creation, sourced from announcements, government releases, and funding agreements. These were certified to Ohio authorities, attesting to payroll thresholds (e.g., $1.5 million annually) and job targets for tax exemptions.Key Statements on Job CreationJob projections emphasize direct AWS roles (e.g., technicians, engineers) and indirect economic impacts, often highlighted in state incentive approvals. Here's a summarized table:
Date
Speaker/Source
Statement on Jobs
Context/Details
September 21, 2023 (Initial New Albany Expansion)
AWS & Data Center Frontier
105 full-time jobs with $9 million annual payroll (average $85,000/job); hundreds indirect via construction and suppliers. Part of $3.5 billion for five data centers on 439 acres.
Approved by New Albany City Council with 30-year tax abatement (100% for 15 years, 75% for next 15). Qualifies for Ohio sales tax exemptions on equipment.
December 16, 2024 ($10 Billion Statewide Plan)
Ohio Gov. Mike DeWine & AWS
Hundreds of new AWS jobs; thousands supported in local economy (e.g., construction, vendors). Broader $23.8 billion Ohio investment by 2030.
Announcement ties to AI/cloud growth; New Albany as key site. Certifications include job commitments for incentives like property tax exemptions.
May 2, 2025 (Community Update)
AWS Official Blog
Hundreds of new AWS jobs; thousands in local economy from ongoing expansions. Includes 18 renewable energy projects generating jobs.
Focus on New Albany and Central Ohio; reiterates economic ripple effects. No specific New Albany breakdown, but tied to $10 billion plan.
June 20, 2025 (Business Insider Report)
AWS & Ohio Officials (via report)
Statewide: 4,760 indirect jobs annually from prior investments. New Albany-specific: ~100-200 direct jobs across sites, per incentives.
Report highlights certifications but notes low realization; subsidies require attested job plans under Ohio Rev. Code §122.17.
These figures were certified in applications to Ohio's Department of Development and local councils, requiring affidavits on job creation and no adverse labor impacts (e.g., layoffs during recruitment).Claims of Fraudulent or Misleading StatementsBy July 2025, AWS's New Albany projects have progressed slower than anticipated, with only partial buildouts and global layoffs contradicting expansion rhetoric. Critics, including media and X users, label job promises as fraudulent or overstated, arguing they secured $1.8 billion+ in Ohio tax credits (since 2015) and zero sales tax on equipment (~$400 million lost revenue) despite minimal U.S. job growth. No formal fraud investigations exist, but claims focus on discrepancies: promised "hundreds" of jobs vs. ~105 direct roles for $3.5 billion, amid layoffs and similar bailouts elsewhere (e.g., Virginia project paused). Substantiation draws from public records and reports showing high subsidy-per-job ratios.
  • Low Job Creation Relative to Subsidies:
    • Original promises: Hundreds direct, thousands indirect for $10-23.8 billion statewide. Reality: New Albany yields ~105 direct jobs for $3.5 billion, equating to ~$33 million per job. Critics call this a "grift," with Ohio forfeiting $189+ million in taxes for similar Big Tech projects (e.g., Meta's 98 jobs). Emergence: June 2025 reports highlight unfulfilled certifications, echoing CHIPS ecosystem delays.
    • X commentary: Accusations of "looting" via tax breaks for 100 jobs per $1 billion; demands for contract audits.
  • Layoffs Amid Promises:
    • AWS cut hundreds in cloud units (July 2025), part of 27,000+ since 2022. This contradicts 2024-2025 statements on "hundreds of new jobs," violating the spirit of incentive certifications requiring stable employment.
    • Claims: Misleading to certify growth while streamlining operations; parallels Intel's CHIPS-funded layoffs. Broader critiques label data center subsidies a "scam" for low-wage, low-volume jobs.
  • Broader Ecosystem and Incentive Criticisms:
    • Tied to CHIPS indirectly: AWS benefits from Intel's delays (e.g., chip shortages impacting AI data centers), yet promises jobs in the same hub. X users link to "CHIPS scam," accusing overpromises for graft.
    • Policy reports: Ohio's program lacks clawbacks for unmet jobs; AWS's Virginia pause (mid-2025) raises fears of similar in New Albany.
In summary, while no proven fraud, claims are substantiated by outcomes: ~105 direct jobs for $3.5 billion in New Albany vs. promised hundreds. Calculate cost per job as total investment / jobs = $3.5B / 105 ≈ $33.3 million each (step: divide investment by attested jobs from certifications). Add layoffs (27,000+ net loss), and subsidies appear disproportionate, fueling calls for reforms.

Comments

Popular posts from this blog

Explaining Qui Tam Law "qui tam is a writ through which private individuals who assist a prosecution can receive for themselves all or part of the damages or financial penalties recovered by the government as a result of the prosecution. Its name is an abbreviation of the Latin phrase qui tam pro domino rege quam pro se ipso in hac parte sequitur, meaning "[he] who sues in this matter for the lord king as well as for himself."

The Plan to defraud US Taxpayers Billions started at the Epstein funded "Billionaires Dinner" attended by Tech Pioneers.

Billionaire Ties and Political Ambitions: Examining Glen Dubin, Vivek Ramaswamy, Goldman Sachs, Jeffrey Epstein