How states are competing in the data center gold rush

Marketplace Tech

American Public Media

Technology, News

4.6 • 1.2K Ratings

🗓️ 16 December 2025

⏱️ 12 minutes

🔗️ Recording | iTunes | RSS

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Summary

Tech giants are estimated to have spent almost $400 billion in capital expenditures this year, mostly to build data centers for artificial intelligence. A single massive facility can have a price tag in the billions of dollars.

And many states want in on that spending spree. Thirty-seven states have some sort of incentive program to attract data centers with the hope of bringing a boost to their local economies. They're giving away hundreds of millions in tax exemptions, according to the National Conference of State Legislatures. Marketplace’s Meghan McCarty Carino spoke with Nicholas Miller, policy associate at NCSL, to learn more.

Transcript

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0:00.0	Worried about your future in tech?
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0:24.1	Ready to tap in?
0:25.9	Visit us at pluralsight.com to learn more.
0:31.4	States are lining up to give tax cuts to data centers.
0:36.2	From American Public Media, this is Marketplace Tech.
0:39.1	I'm Megan McCarty Carrino.
0:49.5	Tech giants are estimated to have spent almost $400 billion in capital expenditures this year,
0:57.7	mostly to build data centers for AI.
1:01.2	Just one of these massive facilities can have a price tag in the billions of dollars,
1:06.0	and many states want in on that spending spree.
1:10.2	37 states have some sort of incentive program to attract data centers with the hope of
1:16.3	bringing a boost to their local economies.
1:18.8	They're giving away hundreds of millions in tax exemptions, according to the National Conference
1:24.1	of State Legislatures.
1:25.9	Many of these policies predated the AI boom, but the
1:29.7	current data center frenzy has intensified the competition and concerns about whether states will
	...

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