Big tech promises towns fewer tax breaks and less secrecy on data centers

Google, Amazon and Meta are making new promises to towns that host their data centers. The pledges include taking fewer taxpayer handouts and keeping fewer secrets about projects. Some of the companies also say they will send more money to communities that agree to host them. The moves come as host communities across the U.S. turn against the huge buildings.

What changed

A data center is a large warehouse full of computers that store information and run online services. The companies behind them are among the richest in the world. According to Fast Company, the new promises are a response to local opposition. The reported pledges fall into three groups.

• Fewer taxpayer handouts, such as tax breaks
• Fewer secrets about what is being built and where
• More money for communities that say yes

Who it affects

Data centers can affect local power bills, taxes and land use. That makes them a real issue for residents, small business owners and local officials in any town that is courted for a project. A promise of more money may sound good, but the details decide who benefits.

What is not known yet

The material available does not say how much money is on offer, which towns are involved, or how each company will carry out its promises. It also does not say whether the pledges will be binding or when they take effect. Without those details, they remain promises.

What to do

If a data center is proposed near you, ask what your town is being promised and whether it is in writing. Ask who pays for power and what tax breaks, if any, are included.