Living under a thick cloud?

Before long the whole of UK, could well be covered in thick cloud, with a thick layer of cloud warehouses, as Amazon has already done some in these land banks several thousand feet below.

1 min read
Prime Minister Rishi Sunak [Photo Credit: Sky News]

Big tech companies like Apple, Microsoft, and Google are battling it out to get market share. They are currently rolling their tanks relentlessly across UK green pastures, with ruthless focus on places that will produce land banks. Besides, they have Sunak, their once Silicon Valley promoter in their grip, before an election in the offing. They are “in the cloud” for the acquisition of prestige sites, for rolling out their AI technology.  

Last year Microsoft began construction of a £1 billion Data Centre in North Acton, West London. Not to be outdone, in January 2024, Google unveiled its own $1 billion also data centre after starting construction on a 33 acre site in Waltham Cross, north of London. With mesmerising ferocity is the news that Microsoft, would open another data centre in North Yorkshire. Before the government finds any words to complement, Microsoft announced it was looking for a London based “land acquisition manager”, whose full time job will be to find and buy more and more sites for “Cloud Servers” or in direct jargon, “responsible for the delivery and prepositioning of data centre real estate needed to build out Microsoft’s “Cloud infrastructure”.

Buying as Land Banks in UK is a recession proof business, for US conglomerates. The concept of land banking involves purchasing underdeveloped, with the intention of holding it until its value increases due to the potential future development. This can be a lucrative investment strangely in the UK due to the limited supply of land and the potential for long term capital appreciation.

Instead of using cash to buy land in UK, these Tech conglomerates use loan notes from subsidiary companies of their parent company in US. These financial instruments similar to an ‘I owe you’ (IOU), a written agreement acknowledging debt, By using an accounting process called “amortisation” (similar to depreciation, whereby a business asset loses value over time) – it can claim an expense for at least 10 years, meaning less profits for it to pay tax on. In plain language, it is a multi-corporation tax dodge, at the expense of small business?

Before long the whole of UK, could well be covered in thick cloud, with a thick layer of cloud warehouses, as Amazon has already done some in these land banks several thousand feet below.

Yes, another Cloud computing, yes another Cloud Land bank, yes another “digital Tech thick layer of Cloud future”, with US Tech conglomerates, to keep the people of Britain, under their wing, while creaming all the thick profit?

Whilst Land Banking can offer high investment returns, it also comes with high risks. But London is a tax haven in some ways, for BIG TECH? MacDonald’s is known in UK for selling “ideas” rather than burgers!

Victor Cherubim

Victor Cherubim is a London-based writer and a frequent columnist of the Sri Lanka Guardian

Leave a Reply

Your email address will not be published.

Latest from Blog