Nicholas Miller, policy associate at the National Conference of State Legislatures, explains how states are leaning into some tax incentives like reduced construction costs to attract data centers, while rethinking others related to electricity use.
Tech giants are estimated to have spent almost $400 billion in capital expenditures this year, mostly to build data centers for artificial intelligence. Just one of these massive facilities can have a price tag in the billions of dollars.
And many states want in on that spending spree. Thirty-seven states have some sort of incentive program to attract data centers with the hope of bringing a boost to their local economies. They're giving away hundreds of millions in tax exemptions, according to the National Conference of State Legislatures.
Many of these policies pre-dated the AI boom but the current data center frenzy has intensified the competition and concerns about whether states will see a payoff.
Marketplace’s Meghan McCarty Carino spoke with Nicholas Miller, policy associate at NCSL, to learn more.
Policy Snapshot: Data Center Incentives - from the National Conference of State Legislatures.
Apple
Spotify
Amazon
RSS