A new Senate report estimates that tax incentives for data center construction have cost state and local governments billions in revenue while benefiting major tech firms.
New federal tax incentives for rural data centers face scrutiny from lawmakers, while states like Louisiana and Oklahoma consider moratoriums on new developments.
Major tech firms are reshaping infrastructure through AI integration, tax optimization, and new financial products, while the U.S. government formalizes voluntary safety standards for frontier models.
Senator Josh Hawley and House Democrats are moving to strip data centers of Opportunity Zone tax breaks, citing concerns over corporate subsidies and local utility costs.
