Stop NY From Handing Tax Breaks to Data Centers

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The Issue

Seven out of ten Americans do not want AI data centers built in their communities. Yet New York is one of 38 states actively handing out generous tax breaks — property tax abatements, sales tax exemptions — to attract exactly these facilities.

New York lawmakers are currently considering two bills that would change that: one to repeal the state's tax exemptions for data centers, and another to impose a three-year moratorium on new data center construction. Both are stalled.

Data centers consume enormous amounts of electricity and water, strain local infrastructure, and generate noise complaints from neighboring residents. They create relatively few permanent jobs. And as one New Jersey lawmaker put it — these companies need a place to build more than communities need them. So why is New York paying them to come?

New Jersey just suspended its remaining $250 million in data center tax credits pending review. Connecticut lawmakers let their repeal bill die without a vote. New York has a chance to lead — but only if lawmakers act before this session ends.

Taxpayer money should fund schools, hospitals, clean energy, and utility relief — not subsidize billion-dollar AI companies that 70 percent of Americans don't want in their backyards.

We're calling on New York lawmakers to repeal the state's data center tax breaks and pass a moratorium on new data center construction now.

Photo: Getty Images

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