States are rolling out red carpets for data centers. But some lawmakers are pushing back
May 30, 2025
The explosive growth of the data centers needed to power America’s fast-rising demand for artificial intelligence and cloud computing has spurred states to dangle incentives in hopes of landing an economic bonanza. It’s also eliciting pushback in places where an influx of data centers has caused friction with neighboring communities. Activity in state legislatures — and competition for data centers — has been brisk. Many states are offering financial incentives or tax breaks worth tens of millions of dollars. In some cases, those incentives are winning approval only after a fight or efforts to attach riders that require data centers to pay for their own electricity or meet energy efficiency standards.
