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Report: Cautionary advice to governments granting overzealous tax breaks
The nonprofit says data centers can boost local economies, but 11 states have approved temporary bans as water and power concerns grow.
- The National Taxpayers Union released two new studies warning local governments against granting overzealous tax breaks to data centers, despite concluding the facilities produce "tremendous dividends" for communities and the national economy.
- Loudoun County, Virginia, recently cut taxes as 38% of its revenue came from data centers, with projections showing over $1.3 billion in equipment tax; other localities approved massive incentives including an 86% break in Abilene, Texas, and a 15-year abatement in Maysville, Ohio.
- Eleven states have approved temporary bans on new construction due to concerns about data centers straining water and electric power supplies; studies suggest localities may no longer need special tax treatment as demand rises.
- Criticizing data centers for low permanent employment, Florida Gov. Ron DeSantis joined other leaders in questioning the industry, while Microsoft announced in early 2026 it would decline tax breaks in Joseph County, Indiana.
- As competition for preferred sites increases, some companies are committing to forgo tax incentives, while the National Taxpayers Union study concludes states and localities may not need to continue offering special tax treatment as demand grows.
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17 Articles
Coverage Details
Total News Sources17
Leaning Left2Leaning Right6Center5Last UpdatedBias Distribution46% Right
Bias Distribution
- 46% of the sources lean Right
46% Right
15%
C 39%
R 46%
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