Published 23 hours ago • loading... • Updated 13 hours ago

Data center tax breaks are on the chopping block in some states

Across multiple states, lawmakers have proposed bills to limit or repeal data center tax incentives, citing cost concerns and economic impacts.
Concerned residents and community groups oppose incentives amid rising electricity bills and environmental harms, with states losing at least $1.6 billion in Virginia and over $2 billion in revenue from Georgia.
According to policy trackers, at least 37 states offer incentives like sales tax exemptions and property tax abatements, with some programs requiring conditions such as five jobs and a $2 million investment, and Michigan's extending through 2050.
Industry groups say sudden changes would create market uncertainty and harm long-term investment, while local construction firms, restaurants and small businesses rely on ongoing projects but risk disruption.
Several legislatures are proposing moratoriums and studies, with Georgia's moratorium lasting until 2027 and a Senate bill ending incentives on Jan. 1, 2027, while Virginia considers energy standards.

Insights by Ground AI