‘Sea change’ in local reaction to data centers poses test for developers: ‘Power shift’

Published July 13, 2026 6:00am ET | Updated July 13, 2026 1:34pm ET



Data center developers are facing a reversal of fortunes as the public is becoming increasingly skeptical of the technological powerhouses.

A decade ago, and more, states were rolling out the red carpet to incentivize data center construction through tax breaks and other policies. Virginia began offering tax incentives for development in 2008. Ohio introduced sales incentives in 2011. Texas followed with tax breaks in 2013, with Georgia and Illinois doing the same in 2018 and 2019.

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