States that awarded billions in tax breaks to attract data centers from Amazon, Meta and Google are now moving to rescind those deals amid growing public backlash. Lawmakers in several states argue the facilities consume massive amounts of electricity and water while creating relatively few jobs, prompting a reevaluation of incentives that once enjoyed bipartisan support. In Virginia, home to the world's largest concentration of data centers, legislators have proposed bills to limit or repeal sales-tax exemptions on equipment purchases. Georgia and Nebraska have also advanced measures to curtail incentives, citing strain on local power grids and rising residential utility rates.

The tech giants, which have invested tens of billions in U.S. infrastructure, warn that revoking agreements retroactively undermines business certainty and could deter future investment. Industry groups are lobbying to preserve the exemptions, emphasizing the digital economy's reliance on local infrastructure. The conflict highlights a widening tension between states' economic development goals and voter concerns over resource allocation and corporate subsidies.