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Data center tax breaks are on the chopping block in some states
Lawmakers seek to cut or limit tax breaks for data centers amid rising energy costs and tax revenue losses, with Virginia losing $1.6 billion annually, watchdog reports.
- This year, state lawmakers introduced bills to rein in data center development by repealing tax exemptions and adding conditions as at least 37 states, including Virginia and Georgia, offer incentives.
- State lawmakers reacted as rising electricity bills and environmental concerns intensified, citing data centers' large land and energy footprints and thousands of servers powering internet services.
- Virginia lawmakers are considering ending a tax break that cost about $1.6 billion last year, while a report estimates Georgia could lose at least $2.5 billion this year as data center exemptions continue.
- Measures that restrict incentives and mandate impact studies are advancing through state legislatures, with bills filed in multiple states to pause projects and require evaluations.
- Experts caution that benefits may be overstated and that incentive costs are easier to measure, as industry officials say data centers generate economic activity, according to Dan Diorio, vice president of state policy at Data Center Coalition.
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Total News Sources19
Leaning Left17Leaning Right0Center0Last UpdatedBias Distribution100% Left
Bias Distribution
- 100% of the sources lean Left
100% Left
L 100%
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