House Democrats Unveil Bill to Deny Data Centers Federal Tax Breaks as AI Buildout Accelerates
Updated
Updated · Fox News · Sep 16
House Democrats Unveil Bill to Deny Data Centers Federal Tax Breaks as AI Buildout Accelerates
3 articles · Updated · Fox News · Sep 16
Summary
Two House Democrats — Kristen McDonald Rivet and Don Davis — introduced legislation Wednesday to bar data centers from using key federal investment incentives, opening a new clash with President Donald Trump’s AI expansion agenda.
21 additional Democrats backed the bill after arguing that data-center projects are capturing lucrative tax benefits not designed for AI facilities while driving up electricity demand, water use and local development pressures.
North Carolina’s Deborah Ross and New Hampshire’s Chris Pappas said developers have bought land without clear disclosure and left towns with little say over projects they say can raise utility costs for residents.
The push targets a fast-growing industry investing billions in U.S. computing infrastructure as the Trump administration seeks to speed permitting and data-center construction to strengthen American AI leadership.