US EditionStates are rolling out red carpets for data centers. But some lawmakers are pushing back
- States across the U.S. Are competing fiercely in 2025 to attract data centers by offering tax exemptions and easing regulations at locations including West Virginia, Texas, and Pennsylvania.
- This surge follows the rapid growth in data centers driven by America’s rising demand for AI and cloud computing, sparked notably by the debut of ChatGPT in late 2022.
- Lawmakers have proposed bills offering benefits such as sales tax breaks, the establishment of microgrid zones, and expedited permitting processes, while certain states mandate that data centers cover their own electricity costs and adhere to specific energy efficiency criteria.
- The push for incentives faces pushback due to concerns over energy grid strain, water usage, and local community impact, with officials like Senate Majority Leader Shane Massey opposing paying for unneeded power plants and some lawmakers questioning data centers’ low direct employment.
- This legislative conflict suggests states must balance fostering economic growth from data centers with managing infrastructure costs and community concerns as competition intensifies nationwide.
50 Articles
50 Articles
U.S. states rolling out red carpets for data centers, but some lawmakers are pushing back
The explosive growth of the data centers needed to power America's fast-rising demand for artificial intelligence and cloud computing platforms has spurred states to dangle incentives in hopes of landing an economic bonanza, but it's also eliciting pushback from lawmakers and communities. Activity in state legislatures — and competition for…
Many states roll out red carpet to data centers for economic boost
HARRISBURG, Pa. — The explosive growth of the data centers needed to power America’s fast-rising demand for artificial intelligence and cloud computing platforms has spurred states to dangle incentives in hopes of landing an economic bonanza, but it’s also eliciting pushback from lawmakers and communities. Read more...
Public input to Markley data center expansion
LOWELL — By the time the Markley data center in Lowell’s Sacred Heart neighborhood is built out, it will boast 27 diesel emergency generators,16 cooling towers, a water treatment plant and other infrastructure to support its growing footprint in the artificial intelligence and data storage field. The amount of combustible fuel to power the large-scale, diesel-fired plant concerned Councilor Kim Scott, who represents District 5, which includes Sa…
States offer big incentives for data centers, but huge land, power, water needs create local friction
The explosive growth of the data centers needed to power America’s fast-rising demand for artificial intelligence and cloud computing platforms has spurred states to dangle incentives in hopes of landing an economic bonanza, but it’s also eliciting pushback from lawmakers and communities. Activity in state legislatures — and competition for data centers — has been brisk in recent months, amid an intensifying buildout of the energy-hungry data ce…
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