“Government is the great fiction through which everybody endeavors to live at the expense of everybody else” ~ Frédéric Bastiat
A strikingly large number of massive data centers are being built across the United States. It is currently estimated that there are more than 4,000 data centers in the U.S., and more are on the way.
The federal government as well as local and state governments are providing financial incentives for these investments. Such incentives occur in an environment that lacks transparency and proper disclosure. As an extension of this opaqueness, the benefits to justify these subsidies also remain unclear. Many would argue that promises of job creation have been grossly overstated (and the data centers’ potential role in creating a digital control grid kept secret), while energy and resource concerns—as well as the potential costs of site cleanup if and when the facilities close down or fail—have been minimized. This, in addition to the secrecy surrounding the planning and financing of the data center industry, indicates that the negative impact to local residents and the American taxpayers may be substantial.
The following report examines this matter and is organized into two main sections. The first covers the federal layer of financial influence helping to advance the data center boom—the One Big Beautiful Bill. The second section focuses on the generous state and local government tax incentives, which are costing state governments billions in revenue losses. The conclusion elaborates on an opportunity to join the effort in seeking clarity on America’s data center industry, with additional resources provided in the links below.
Hellbound and Down 