States Target Data Center Tax Breaks With Rollbacks, Guardrails

Tax incentives for data centers are under fire across the country as state lawmakers seek to repeal them or raise the bar to qualify for them.

At least 27 tax-related bills across 14 states have been proposed in recent months to end data center incentives or make them meet stricter metrics around energy and water consumption and construction practices, according to a Bloomberg Tax analysis of pending state legislation.

Three states—South Dakota, Colorado, and New Hampshire—that have created new tax incentives for data centers have done so with restrictions that sponsors say will guard against community harm.

In addition to ...