U.S. states repeal data‑center tax breaks as local opposition grows

Several U.S. states are moving to repeal tax incentives that have long supported data‑center development, raising concerns that operating costs for these facilities will climb just as demand for AI‑driven compute surges. The policy shift follows community pushback in places such as Pittsburgh, Pennsylvania, where residents have organized petitions and council hearings over a proposed data‑center project, citing worries about water use, greenhouse‑gas emissions and noise. In Coffeyville, Kansas, an online campaign is urging officials to impose a moratorium on new AI data‑center projects until stronger environmental safeguards are in place. A recent NYU Tandon School of Engineering study found that 97.5 % of U.S. data centers are located in urban areas, concentrating energy and water demands in cities and challenging the narrative that these facilities revitalize rural economies. Together, the tax‑break rollbacks, local opposition, and the urban concentration of data centers highlight growing scrutiny of the sector’s environmental footprint and its impact on local communities.