Stateline: Many states don’t report losses from data center tax breaks, study says

A new report from Good Jobs First, a watchdog organization, reveals that 14 U.S. states are not disclosing how much tax revenue they forfeit due to incentives given to data centers. This lack of transparency occurs as states like Georgia, Virginia, and Texas report annual losses exceeding $1 billion from these tax breaks. Greg LeRoy, executive director of Good Jobs First, criticized data center tax abatements, calling them "out of control" and detrimental to public budgets, in addition to being resource-intensive. The report suggests that many states are in violation of financial reporting standards set by the Governmental Accounting Standards Board. These findings emerge amidst increasing local opposition to data centers, fueled by concerns over rising electricity prices and environmental impacts. In a significant move, Maine lawmakers this week approved a statewide moratorium, banning new data centers larger than 20 megawatts until November 2027, making it the first such ban in the country. The legislation, pending the governor's action, also establishes a state council to provide strategic guidance and evaluate policy tools for data centers.