Meta’s AI data center in Beaver Dam is helping the company avoid billions in federal taxes
Meta is building a $1 billion, 700,000-square-foot AI-focused data center in Beaver Dam, Wisconsin, amid local opposition and scrutiny of the federal research tax credit the company uses to reduce its tax bill. Critics also object to confidential development agreements and potential increases in utility rates, while Wisconsin lawmakers remain divided over data center regulation.
Meta is constructing a $1 billion data center in Beaver Dam, Dodge County, designed to support artificial-intelligence workloads. The company says the project will benefit from Wisconsin’s infrastructure, workforce and local partnerships, but surrounding communities have pushed back as construction proceeds.
The report focuses on Meta’s use of the federal Research and Experimentation Tax Credit, which the company says carries a potential $19 billion tax liability if challenged by the IRS. Meta’s use of the credit reduced its taxes by nearly $6 billion, prompting criticism from Wisconsin residents and political leaders concerned about public subsidies, undisclosed development agreements and rising utility costs. Milwaukee County Executive David Crowley has pledged to review state data center tax breaks if elected governor, while Rep. Tom Tiffany supports lower corporate taxes and deregulation.