{"id":2660659,"date":"2026-09-14T08:19:02","date_gmt":"2026-09-14T12:19:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/data-center-cash-cow-dries-up-as-states-pull-the-rug-on-big-tech\/"},"modified":"2026-09-14T08:24:29","modified_gmt":"2026-09-14T12:24:29","slug":"data-center-cash-cow-dries-up-as-states-pull-the-rug-on-big-tech","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/data-center-cash-cow-dries-up-as-states-pull-the-rug-on-big-tech\/","title":{"rendered":"Data Center Cash Cow Dries Up as States Pull the Rug on Big Tech"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fdata-center-cash-cow-dries-up-as-states-pull-the-rug-on-big-tech%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2660659&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The article discusses how numerous states that once provided billions of dollars in tax incentives to attract data centers are now retracting or pausing these benefits. This shift is driven by rising construction costs due to the artificial intelligence (AI) boom, public opposition over environmental concerns, and the high costs associated with maintaining such facilities. Such as, Ohio, which once offered substantial tax exemptions to attract tech firms, has paused new applications as costs surpass initial estimates. Similarly, Illinois, New Jersey, and Washington have halted or reduced their tax breaks. Despite these changes, many states, including Virginia, continue to offer tax exemptions, which substantially influence where companies choose to build data centers. Politicians like Donald Trump advocate for these developments, claiming they generate jobs, investment, and tax revenue. Companies like Amazon highlight their substantial investments and job creation efforts linked to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/u-s-to-announce-new-curbs-on-tech-exports-to-china-this-week-sources\/\" title=\"U.S.to announce new curbs on tech exports to China this week -sources\">data center projects<\/a>. However,critics question the environmental and infrastructural impacts of these facilities,leading to a reevaluation of the incentives provided to data-center developers.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><br \/>\n<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><html><body><\/p>\n<section> \t\t\t\t<script>console.log(\"ad slot (AC1)\")<\/script><script>console.log(\"ad slot (IC1)\")<\/script><script>console.log(\"ad slot (IC2)\")<\/script><script>console.log(\"ad slot (IC3)\")<\/script><\/p>\n<p>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.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">More than ten states <a class=\"LexicalEditorTheme__link\" href=\"https:\/\/www.wsj.com\/politics\/policy\/states-that-gave-data-centers-billions-in-tax-breaks-are-now-ripping-up-the-deals-4879c4f9?st=ZjNVKE\">paused or canceled data-center tax exemptions<\/a>, threatening benefits that helped Amazon, Meta and Google build facilities across the country, The Wall Street Journal reported. Communities raised concerns about data centers\u2019 demands on electricity grids and water supplies and questioned whether taxpayers should subsidize the AI buildout.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">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\u00a0\u2014 more than ten times the state\u2019s original estimate, according to The Wall Street Journal. Republican Ohio Gov. Mike DeWine paused new applications for the exemption in May.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">Illinois, New Jersey and Washington were the among states that moved to halt data-center tax breaks.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">New Jersey made <a class=\"LexicalEditorTheme__link\" href=\"https:\/\/pub.njleg.state.nj.us\/Bills\/2026\/A5500\/5165_S1.HTM\">$500 million in tax credits<\/a> available for data-center projects before lawmakers moved to eliminate the remaining $250 million in August just two years later, reflecting the change in public sentiment in a short period of time. The state already awarded $250 million to one project.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">Virginia, the leading state for data centers, projected roughly <a class=\"LexicalEditorTheme__link\" href=\"https:\/\/goodjobsfirst.org\/the-hidden-costs-of-virginias-data-center-subsidy-and-how-they-undermine-public-schools\/\">$1.94 billion in lost sales-tax revenue<\/a> from its data-center exemption for fiscal year 2025. More than 35 states offer sales-tax exemptions or similar benefits to data-center developers, The Wall Street Journal reported.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">The incentives can influence where companies build because servers and other data-center equipment were <a class=\"LexicalEditorTheme__link\" href=\"https:\/\/taxfoundation.org\/research\/all\/state\/data-centers-taxation\/\">exempt from sales taxes in many states<\/a>, often in exchange for meeting investment or economic-development requirements. The equipment represents a large  of project costs and must be replaced regularly, making the tax treatment a significant factor in the cost of building and operating a data center.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">Texas officials scrutinized a wave of <a href=\"https:\/\/amzn.to\/3YuVZYV\" >proposed data-center projects\u00a0amid concerns<\/a> about the state\u2019s power grid and local communities.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">President Donald Trump urged communities to embrace data centers, arguing they could generate investments and wealth.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">\u201cIf you want to get rich as a state or as a town and if you want to pay lower taxes, if you want to create tremendous wealth, if you want your house to be more valuable and everything else, you\u2019re going to want a data center,\u201d Trump said Friday.<\/p>\n<p class=\"LexicalEditorTheme__paragraph\">Tech companies argued the facilities generate jobs, investment and tax revenue. Amazon said it <a class=\"LexicalEditorTheme__link\" href=\"https:\/\/www.aboutamazon.com\/news\/aws\/amazon-data-center-investment-community-impact\">invested $19.7 billion in Ohio AI and cloud infrastructure<\/a>, supported more than 6,400 full-time equivalent jobs annually and paid $9.2 million in Ohio property taxes and fees in 2024.<\/p>\n<div class=\"disclaimer\">\n<p>All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter\u2019s byline and their DCNF affiliation. 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( opts[inputs[i]] = document.querySelector( '.entry-submit-correction [name=\"' + inputs[i] + '\"]' ).value ) ) { \t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .required-message' ).style.display = 'block'; \t\t\t\t\t\treturn; \t\t\t\t\t}  \t\t\t\t\tdocument.querySelector( '.entry-submit-correction input[type=\"submit\"]' ).style.display = 'none'; \t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).src = firefly_loading_gif_url; \t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).style.display = 'inline-block';  \t\t\t\t\tconsole.log( 'ma subbing' );  \t\t\t\t\tif( firefly_post_id ) opts['post_id'] = firefly_post_id;  \t\t\t\t\t\/* Send the data using post with element id name and name2*\/ \t\t\t\t\tvar posting = jQuery.post( firefly_ajax_url, opts );  \t\t\t\t\t\/* Alerts the results *\/ \t\t\t\t\tposting.done( function( response ) { \t\t\t\t\t\tif( response.success ) { \t\t\t\t\t\t\tconsole.log( response.data ); \t\t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).style.display = 'none'; \t\t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-confirm' ).style.display = 'block';  \t\t\t\t\t\t\tdataLayer.push( { 'event': 'submit-correction' } ); \t\t\t\t\t\t} \t\t\t\t\t}); \t\t\t\t}); \t\t\t} \t\t<\/script> \t     \t\t\t\t\t\t     \t\t\t\t\t<\/div>\n<p> \t\t\t\t\t \t\t\t<script>console.log(\"ad slot (BA1)\")<\/script> \t\t<\/p>\n<div class=\"ff-fancy-header-container\"> \t\t\t \t<\/div>\n<\/section>\n<p><\/body><\/html><\/p>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>States that offered billions in tax breaks for data centers are pulling back incentives due to rising AI costs and opposition. Over ten states paused or canceled exemptions, threatening benefits for Amazon, Meta, and Google<\/p>\n","protected":false},"author":1,"featured_media":2660661,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2026\/09\/IMG_2873.jpeg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[23092,63631,85280,85617,34629],"class_list":["post-2660659","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-big-tech","tag-data-center","tag-industry-impact","tag-revenue-decline","tag-state-regulations"],"fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2026\/09\/IMG_2873.jpeg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2660659","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2660659"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2660659\/revisions"}],"predecessor-version":[{"id":2660664,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2660659\/revisions\/2660664"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2660661"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2660659"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2660659"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2660659"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}