States are rolling back the billion-dollar tax breaks they gave to AI data centers


States are rolling back the billion-dollar tax breaks they gave to AI data centers


Voter anger over higher electricity bills and grid strain is pushing governors in Texas and Pennsylvania to halt or limit new data center projects

States that once offered generous tax breaks to lure data centers from companies including Amazon $AMZN -1.26%, Meta $META +2.71%, and Google $GOOGL +3.22% are pulling back those incentives as public opposition to the facilities grows. The reversals come as lawmakers across party lines face mounting pressure from constituents worried about electricity costs and grid reliability...

Residents and local officials have objected primarily to rising electricity costs, the burden data centers place on the power grid, and their heavy water usage. Nationwide average wholesale electricity prices climbed between 2% and 6% because of data center demand, and the facilities were the leading factor behind U.S. electricity consumption reaching a record high in 2025. According to Bureau of Labor Statistics data, electricity costs for Americans have climbed more than 35% compared with five years ago...

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RSK: There is a lot of money in data centers. Someone has to come up with a solution to appease both sides and money can do that.

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- - Volume: 26 - WEEK: 38 Date: 9/15/2026 5:11:06 PM -