Data center developers routinely ask for massive tax breaks from local and state governments including property tax abatements lasting 10-20 years, sales tax exemptions, reduced utility rates, and infrastructure subsidies.
They promise jobs and economic growth, but data centers are highly automated and often create far fewer jobs than traditional industries while placing substantial burdens on local infrastructure.
Tax incentive negotiations require public hearings and votes by elected officials, creating high-visibility political moments where organized opposition can directly influence outcomes.
Unlike regulatory processes, these decisions are made by local representatives who answer directly to voters. The economic claims developers make are often vulnerable to scrutiny: independent fiscal analyses frequently reveal inflated job projections, understated infrastructure costs, and better alternative uses of public money.
This is where communities can reframe the debate from “jobs vs. no jobs” to “who really benefits from subsidizing this development?” Communities can mobilize turnout at public hearings, commission independent fiscal impact studies, expose the gap between promised and actual jobs, and build coalitions between fiscal conservatives concerned about corporate welfare and progressives focused on community needs. Several tax packages have been reduced or denied when organized opposition effectively challenged developer claims. The key is demanding strong clawback provisions (recapturing incentives if promises aren’t kept) and enforceable community benefit agreements with binding terms.
Key Targets
- County/city council members: Elected officials voting on tax abatement packages
- Economic development authorities: Agencies negotiating and recommending incentive deals
- Tax incentive review boards: Bodies evaluating community benefit claims
- Local business coalitions: Chambers and business groups evaluating economic claims
- Taxpayer advocacy groups: Organizations focused on fiscal responsibility
Possible Interventions
- Challenge Fiscal Impact Studies: File detailed critiques exposing flawed job creation claims, unrealistic property value assumptions, and hidden infrastructure costs
- Expose Job Creation Myths: Present data on actual employment patterns (automation, temporary construction vs. permanent jobs, local hiring failures)
- Compare Alternative Development: Commission analysis showing superior economic outcomes from alternative uses of land and tax incentives
- Organize Public Hearing Turnout: Mobilize residents, small businesses, and taxpayers to testify in opposition at all public hearings
- Build Business/Taxpayer Coalition: Unite small businesses, taxpayers, and fiscal conservatives around shared concerns about subsidizing mega-corporations
Gateway Intervention
Campaign Playbook
Each campaign will have it’s own unique challenges and context. We are here to help talk through steps. The steps in this guide are informed by community victories so we aren’t reinventing the wheel. Contact us to talk about your campaign.
1. Early Detection & Analysis:
Monitor economic development authority meetings. Request all incentive proposals and supporting documents. Engage economists to review fiscal impact claims. Identify all public hearing opportunities.
2. Counter-Analysis & Coalition:
Commission independent fiscal impact analysis. Prepare alternative development scenarios. Build coalition with business and taxpayer groups. Organize speaker teams for public hearings.
3. Public Campaign & Votes:
Execute public hearing testimony strategy. Generate media coverage of subsidy giveaway. Lobby council members on fiscal concerns. Organize petition and letter-writing campaigns.
Valuable Allies
You don’t need to take on bad data centers alone. There are organizations and experts who can help. Explore the directory to find other leaders, and discover organizations in the Alliance Map.
Fiscal Policy Analysts: Provide credible critiques of incentive claims
Economic Development Critics: Expert testimony on subsidy effectiveness
Small Business Advocates: Coalition partners representing local economy
Taxpayer Rights Organizations: Mobilize fiscal conservative opposition
Community Organizers: Turn out residents to public hearings
Gateway 4: Tax Incentive Negotiations
Resources & Documents
Essential tools and resource for this gateway.
