The best and worst states for AI data centers
Summary
Data center construction is growing quickly in the U.S., but states differ in how they support or limit these projects. Texas encourages data centers with low costs and big tax breaks, while Maine plans a temporary pause to review the impact on energy and costs.Key Facts
- Texas has 212 operating data centers in 2024, with 651 more announced and 157 under construction.
- Texas offers tax incentives worth over $1 billion yearly to attract data center investments.
- Some Texas residents worry about water use and electricity costs as data centers grow.
- Maine plans the first statewide pause on new data centers to evaluate energy use and protect customers.
- Maine’s pause would last 18 months and involve studying electric load growth and financial tools.
- About a dozen states are considering similar pauses on data center construction.
- At the federal level, lawmakers have proposed stopping new data centers across the country temporarily.
- Virginia, another key state for data centers, also faces debate over tax breaks and possible moratoriums.
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