Map: Which States Are Giving Biggest Tax Breaks for Data Centers
States like Washington, Texas, and Indiana have offered billions in tax incentives to attract data centers, with Amazon, Apple, Meta, Google, and Microsoft being major recipients. However, community opposition is growing nationwide due to concerns over energy and water use, and land impact. Monterey Park, California, has already enacted a ban on new data center development.
States across the U.S. have provided hundreds of millions to billions of dollars in tax breaks and subsidies to attract data centers, according to the Good Jobs First Subsidy Tracker. Washington and Texas lead in the number of incentives, while Indiana provided the largest known package of $8.2 billion to Amazon Data Services. Other significant recipients include Amazon ($1 billion in Oregon), Apple ($891 million in North Carolina), Meta ($687.6 million in Texas and $355 million in Georgia), Google ($170 million in Indiana), and Microsoft (dozens of smaller subsidies in Washington state).
Despite these incentives, communities are increasingly pushing back against the rapid expansion of data centers. Environmental activist Erin Brockovich has become a prominent critic, launching a database to track new construction and highlighting public concerns. Over 6,600 people have contacted Brockovich about data centers in their areas, reflecting a growing debate over the infrastructure's demands.
Key community concerns include the vast amounts of electricity and water required for computing operations and cooling, which strain local grids and water systems, especially in drought-prone regions. Data centers can use millions of gallons of water daily, equivalent to a small town. Land use conflicts are also a major issue. As a result of this backlash, Monterey Park, California, has already passed a ban on data center development, with many other U.S. cities and counties potentially following suit. A recent Gallup Poll indicated that 7 out of 10 Americans object to building AI data centers in their communities.