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Home – Big Tech News – States Increasingly Pulling Rug Out From Under Big Tech With Tax Break Reversals

States Increasingly Pulling Rug Out From Under Big Tech With Tax Break Reversals

THE DAILY CALLER NEWS FOUNDATION—States that offered billions of dollars in tax breaks to lure data centers began to pull back the incentives as the artificial intelligence (AI) boom drove up costs and fueled opposition to the facilities.

More than ten states paused or canceled data-center tax exemptions, threatening benefits that helped Amazon, Meta and Google build facilities across the country, The Wall Street Journal reported. Communities raised concerns about data centers’ demands on electricity grids and water supplies and questioned whether taxpayers should subsidize the AI buildout.

Ohio lawmakers exempted computer servers and other data-center equipment from sales taxes more than a decade ago to attract technology investment. The incentive helped turn Ohio into a major data-center hub, but its cost reached more than $1.5 billion in 2025—more than ten times the state’s original estimate, according to The Wall Street Journal. Republican Ohio........

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