Data Centers Used To Be A Prize. Now States Are Having Second Thoughts

"Legislators in at least 28 states this year introduced bills that would roll back tax incentives for the energy-hungry facilities."

"Politicians used to compete to lure data centers to their states. They’re starting to reconsider.

Tempted by promises of more jobs, tax revenue and the chance to be on the cutting edge of technology, more than three dozen states rolled out the red carpet for data centers in the form of tax breaks and other financial incentives.

But now a growing number of states are tempering their enthusiasm. Of the 38 states that currently offer incentives to the data center industry, at least 28 of them have weighed legislation this year to end or shrink those benefits, according to the National Conference of State Legislatures, a nonpartisan research group."

Jason Plautz and Jeffrey Tomich report for E&E News April 30, 2026.