> It would be better for governments to buy and own their own datacenters,

I mean thats good, but they'd have to also build thier own dataset. Which involves either paying people, or breaking the law.

Plus if they do manage to make it work, they will not get any tax revenue from it, as it'll remove the need for labour, which is where a huge amount of tax revenues come from.

its a deeply hard problem with lots of second/third order effects.