SC is among 14 states not reporting data center tax breaks, study says

A new report by the watchdog group Good Jobs First indicates that 14 U.S. states, including South Carolina, are not disclosing the revenue lost due to tax breaks given to data centers. This non-disclosure is cited as a violation of financial reporting standards set by the Governmental Accounting Standards Board (GASB). The report, authored by Greg LeRoy, executive director of Good Jobs First, highlights that states like Georgia, Virginia, and Texas are losing over $1 billion annually to such incentives. LeRoy criticizes these tax abatements, calling them "out of control" and arguing that hyperscale data centers are not only extractive of electricity, water, and land but also undermine public budgets. The findings emerge amid increasing public scrutiny and local opposition to data centers, driven by concerns over rising electricity prices and environmental impacts. In response to these growing issues, state lawmakers are exploring ways to limit or repeal these incentives. As an example of legislative action, Maine lawmakers recently approved the country's first statewide moratorium on data centers larger than 20 megawatts, pending action from the governor. This legislation would ban new data centers until November 2027 and establish a state council to address related policy and planning.