Why Tax Breaks for Data Centers Could Backfire on States

Why Tax Breaks for Data Centers Could Backfire on States

As the AI boom continues to escalate, states have rushed to entice data centers with juicy tax breaks. Data centers not only provide cloud based storage, but also power the training of increasingly powerful AI models. Lawmakers in more than 30 states have carved out tax incentives for data center companies, arguing that without them, the data centers wouldn’t come—and that their presence is essential toward growing property and income tax revenu…

State Losses From Data Center Tax Breaks Top $3 Billion Annually

US states lose more than $3 billion annually through “out of control” tax exemption programs subsidizing data storage facilities operated by technology giants from Amazon.com to Meta Platforms Inc., a report by a tax policy group found.