Map: Which States Are Giving Biggest Tax Breaks for Data Centers

As some communities push back against the rapid expansion of data centers, and in some cases move to block new construction, here's a look at the states that have offered hundreds of millions of dollars in tax incentives to attract new projects. Biggest Corporate Tax Credits and Subsidies Washington and Texas account for the vast majority of data center tax incentives identified in the Good Jobs First Subsidy Tracker. The database shows 251 instances of data centers receiving tax credits, subsidies or other incentives across 16 states from 2020 to 2026. Washington leads with more than 120 awards, followed by Texas with roughly 86.

Arizona had around 15 and Utah less than 10, while states including Wisconsin, Nebraska, Georgia, Wyoming, Ohio, Nevada and Indiana had fewer than three each. Despite Washington and Texas leading in the number of subsidized data center projects, Indiana provided the largest known subsidy package, with an estimated $8.2 billion in incentives tied to Amazon Data Services, per Good Jobs First. The year prior, in 2023, Oregon offered $1 billion to Amazon. In 2021, North Carolina neared a similar target, with around $891 million to Apple.

Meta was awarded the two next largest, around $687.6 million in Texas and $355 million in Georgia. Alphabet Inc., parent company of Google, got a $170 million subsidy in Indiana. Other companies that have received subsidies include Microsoft, with dozens of smaller subsidies in Washington state. With the exception of Microsoft's largest subsidy awards, which were considered "tax credit/rebate" in the database, the biggest incentive packages were classified as "megadeals" by Good Jobs First, often combining multiple state and local subsidies.

Those included an Amazon project in Oregon and a Meta project in Georgia. Good Jobs First defines "megadeals" as subsidy packages with a value of $100 million or more. Where Are Most Data Centers? As demand for AI computing power grows, a handful of states have emerged as major hubs for data-center development.

Virginia: Long a hub for government contractors and cloud infrastructure, Virginia—particularly Northern Virginia’s “Data Center Alley”—offers proximity to federal agencies and one of the world’s densest fiber networks. Established infrastructure reduces build times and attracts those looking to scale quickly.Texas: Combines vast, inexpensive land with a deregulated energy market that gives companies flexibility in securing large power loads. Cities like Dallas and Austin also bring a growing tech workforce and business-friendly policies that appeal to major AI investors.California: Has a high concentration of data centers, with around 300 operational in 2026. California's Energy Commission estimates that data centers will account for about 4,500 megawatts or 9 percent of peak demand by 2040.Ohio: Has positioned itself as a Midwestern data hub, with strong incentives and central geographic access to U.S. population centers.

Its legacy industrial sites are often repurposed for data centers, offering space and existing infrastructure at competitive costs.Arizona: The state's dry climate is favorable for certain cooling technologies, while its abundant land and aggressive economic development incentives have drawn major tech firms. Phoenix, in particular, has become a key destination for new AI and cloud infrastructure builds.Georgia: Anchored by Atlanta, the state offers strong connectivity as a Southeast internet exchange hub. State and local tax breaks, combined with access to both talent and transport infrastructure, have made it increasingly attractive for large-scale data operations.Utah: The state benefits from lower real estate costs, a stable regulatory environment, and access to renewable energy sources. Its growing tech sector, known as “Silicon Slopes,” provides an emerging talent pool to support AI-focused expansion.

According to the World Resources Institute, the top 10 states housing data centers account for nearly 60 percent of all data centers across the country. What Is Erin Brockovich's Data Center Tracker? In recent weeks, environmental activist Erin Brockovich has made headlines as a prominent critic of the rapid expansion of data centers across the U.S., launching a database to track new construction. Her database shows more than 50 data centers under construction across the country.

A significant number are in the drought-prone South. Brockovich is best known for helping build a case against Pacific Gas & Electric (PG&E) over groundwater contamination in Hinkley, California, in the 1990s. PG&E agreed to a $333 million settlement in 1996, then the largest payout in a direct-action lawsuit in U.S. history. Brockovich's role in the case rose to international fame thanks to the 2000 film Erin Brockovich, starring an Oscar-winning Julia Roberts.

More than 6,600 people have contacted Brockovich about AI data centers in their communities, contributing to a growing crowdsourced effort to track the facilities emerging across the United States. Brockovich wrote on Facebook on Monday: “6,615 submissions have been sent in and counting. That’s how many of you have written to us about AI data centers in your area as of May 31.” The response highlights what Brockovich says is growing public concern about the rapid expansion of data centers, the energy-intensive facilities powering the artificial intelligence boom. Brockovich’s tracker aims to provide greater visibility into the scale and location of facilities being developed to support AI growth.

Why Are People Pushing Back Against Data Centers? The thousands of submissions received by Brockovich reflect a growing debate over the physical footprint of artificial intelligence, as communities across the country grapple with the demands of the infrastructure powering the technology. A recent Gallup Poll found that seven in 10 Americans object to building AI data centers in their community. The poll, which was conducted March 2-8, found that 48 percent of participants strongly oppose local construction of AI data centers, 23 percent somewhat oppose, 20 percent somewhat favor and 7 percent strongly favor.

According to Brockovich’s website, residents have raised concerns about: Rising energy consumption and the potential for higher electricity costsWater use that could strain local suppliesElectronic waste generated by frequent hardware upgradesVulnerability to natural disasters and floodingPressure on local infrastructure and public resourcesNoise from round-the-clock cooling systems and backup generators Many of the concerns stem from the rapid growth of an industry that is still in the early stages of expansion. Monterey Park, California, passed a ban on data center development, and many more U.S. cities and counties seem poised to introduce similar laws amid a growing national backlash against the infrastructure. What Are Environment Concerns of Data Centers? Data centers require vast amounts of electricity and water to support computing operations and cooling systems, reshaping local energy grids, water systems and land use in various communities.

Mid-sized data centers can use up to 300,000 gallons of water for cooling every day, while larger ones can reach up to 5 million gallons daily, according to estimates by the Environmental and Energy Study Institute. Five million daily gallons is equivalent to the water use of a town with a population between 10,000 and 50,000. Excessive water consumption comes as many communities are already facing limited resources and drought conditions. Energy and fuel usage are another concern as the data centers require contact and reliable power, raising concerns about energy demands and pollution.

Another community concern is how the centers are taking over land, often causing a rift between agricultural uses or other developments.