Technology

New Jersey datacenter expansion got $77m in tax breaks to create exactly one permanent job — JPMorgan's site already scored $35m and currently employs just 25 workers

Source

Tom's Hardware

Published

Apr 20, 2026

TL;DR

AI Generated

A JPMorgan datacenter expansion in New Jersey received $77 million in tax breaks to create just one permanent job, marking a high subsidy-to-jobs ratio. The expansion, which is part of a $1 billion investment, currently employs only 25 workers despite the substantial tax incentives. The Industrial Development Agency (IDA) believes the deal will benefit the local economy, projecting a $100 million infusion. While the IDA acknowledges the lack of permanent jobs, they argue that the overall economic impact justifies the subsidy. The situation highlights the need for closer scrutiny of datacenter subsidies and their true economic impact.

Read Full Article

Silicon Photonics Lights The Way To More Efficient Data Centers

Silicon photonics is paving the way for more efficient data centers by potentially increasing bandwidth density and reducing power consumption, particularly driven by AI workloads. However, challenges such as process compatibility, thermal issues, and mechanical stress arise due to the use of various materials in photonic interconnects. Integrated electro-optical I/O modules are the desired outcome, but design and process complexities need to be addressed. The article delves into the technical aspects of silicon photonics, including the components involved, such as light sources, modulators, waveguides, and photodetectors, as well as the challenges of integrating optical and electronic components for efficient data transmission.

SemiEngineering•

5 days ago

Half of planned US data center builds have been delayed or canceled, growth limited by shortages of power infrastructure and parts from China — the AI build-out flips the breakers

Shortages of power infrastructure components and parts from China have led to delays and cancellations of about half of planned U.S. data center builds. The trade war between the U.S. and China has forced server makers out of China, impacting the availability of electrical equipment crucial for data center construction. Major tech companies like Alphabet, Amazon, Meta, and Microsoft are expected to invest heavily in expanding AI capacity, but constraints in power infrastructure components are hindering progress. The delays in obtaining key electrical components like transformers and switchgear are causing setbacks in deploying AI data centers, with lead times for high-power transformers stretching up to five years. Companies are turning to global markets to address shortages, with Canada, Mexico, and South Korea emerging as major suppliers for high-power transformers.

Tom's Hardware•

2 weeks ago

Nuclear Power and Design Automation

The article discusses the growing interest in nuclear power as an additional source for power generation, particularly due to the increasing demand from large data centers. Notably, investments from companies like Microsoft and individuals like Sam Altman indicate a push to expedite progress in nuclear power beyond the slower pace of traditional utilities. The author, who has expertise in this area, explores the intersection of nuclear power and design automation.

SemiWiki•

3 weeks ago

OpenAI couldn’t finance its data centers, so it took control of the hardware instead — company's chip design aspirations lag behind Google and Amazon

OpenAI faced challenges financing its AI data centers, leading to a shift in strategy towards controlling hardware decisions rather than physical real estate ownership. A deal with Oracle resulted in plans for 4.5 gigawatts of data center capacity across multiple U.S. sites, with shared economic risk. OpenAI's compromise with SoftBank in Texas involved a $500 million investment in SB Energy to build and operate a data center. The company has secured agreements with Nvidia, AMD, Broadcom, and Cerebras for chip deployments, aiming to catch up with competitors like Google and Amazon in chip design and software stack development. OpenAI's infrastructure organization, led by a former Intel executive, focuses on developing data center IP for future hardware requirements.