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WSJ: Over 10 US States Rip Up Data Center Tax Breaks Topping $1B a Year Amid AI Buildout Backlash

AI Infrastructure Regulation ai-infrastructure

Summary

The Wall Street Journal reports that more than 10 US states have moved to roll back data center tax breaks that top $1 billion per year in some jurisdictions, with many others weighing similar bills. Maine fully repealed its incentives, while governors in Illinois, Massachusetts and Ohio paused their programs; Nebraska, Washington and North Carolina have restricted or phased out exemptions. Cited drivers include lost revenue, rising consumer energy costs and community backlash to AI-driven buildouts.