Using digital technologies to govern human societies
Governing Technologies (7)
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- 5 min
- CNBC
- 2025
Following in the footsteps of the state of Indiana (2019), almost all states in the US provide tax exemptions to eligible data centers. The demand for data centers was high when the Indiana legislation was passed, but it has skyrocketed ever since the advent of LLMs and their need for more storage and energy. To attract data centers, states are forfeiting millions of dollars in taxes. Questions about whether having these exemptions is even profitable, considering that they don’t create that many jobs but use a significant amount of electricity, along with questions about who is getting these benefits, are being raised. It was found that a company applied for an exemption, but it was another holding company for Google.
- CNBC
- 2025
-
- 5 min
- CNBC
- 2025
Race to give tax cuts to data centers
Following in the footsteps of the state of Indiana (2019), almost all states in the US provide tax exemptions to eligible data centers. The demand for data centers was high when the Indiana legislation was passed, but it has skyrocketed ever since the advent of LLMs and their need for more storage and energy. To attract data centers, states are forfeiting millions of dollars in taxes. Questions about whether having these exemptions is even profitable, considering that they don’t create that many jobs but use a significant amount of electricity, along with questions about who is getting these benefits, are being raised. It was found that a company applied for an exemption, but it was another holding company for Google.
- What are the benefits of having a data center in the state compared to outside?
- What is the government’s responsibility in the propagation of data centers?
- What step can be taken to reduce the losses these tax exemptions produce?
- Should the government be establishing publicly supported data centers for equitable access to these resources?