It’s no secret AI giants are racing against each other to build data centers across the country. With the AI boom skyrocketing in the 2020s, the U.S. has grown to nearly 5,000 data centers across all 50 states to date, with hyperscalers driving much of that expansion. But with that growth comes tax incentives that seem to scale further than market competition.
According to a report from JLL, a commercial real estate and investment management company, the global data center sector will likely expand at a 14% compound annual growth rate through 2030—and it notes “hyperscalers will remain a key driver of sector growth.” And with that growth comes significant savings for the hyperscalers: nearly three-quarters of all states employ tax incentives for data center development—which include exemptions from sales and use tax, property tax and “financial transactions” tax.
