While the nationwide movement to stop data centers grows, many states and cities are going in the opposite direction. They’re establishing tax abatements, or reductions, that reduce costs for data centers — and reduce funds for local needs like road improvements and emergency medical services. In other words, while Big Tech and corporate developers can grow their profits, communities lose out. 

These tax abatements are based on the false assumption that data centers must be lured into a community to bring jobs and economic development. But nothing could be further from the truth. In fact, many of these towns have what data centers desperately need — energy, water, and infrastructure. 

Meanwhile, across the country, we’re seeing data centers raise electricity bills, threaten clean water supplies, bring few jobs, and gobble up land and resources. Tax abatements are just another way for data centers to leech off our communities. 

One such community is in Adams County, OH, where Amazon is currently planning its Project Galaxy data center. Project Galaxy may become one of the biggest data centers in the state and is slated to consume 31 times more power than the rest of Adams County. 

Food & Water Watch dug into communications between Amazon, County officials, and a hired law firm to discover what lucrative deals Adams County may offer to one of the richest corporations on the planet — and how people will pay the price. 

Adams County, OH: A Case Study in Data Center Tax Breaks

What do these tax breaks actually involve? In the case of Project Galaxy, Adams County is considering several options. 

One is a Community Reinvestment Area (CRA) agreement, which would reduce the amount of property taxes paid in a specific zone. One proposal would create a 30-year agreement in which Project Jupiter and other development in the CRA would pay zero property taxes to the County. 

Another CRA would set up a 15-year, 50% tax break deal, and be combined with a Tax Increment Financing (TIF) plan. This would create a “TIF district” and separate the property taxes paid on that land into two streams: one for “unimproved” land that goes straight to the County, and a second for “property improvements,” including the data center buildings and their hundreds of millions of dollars’ worth of “land improvement.” 

This second, much larger stream would not fund public services, but instead would be used only for the benefit of development within the TIF district. 

Project Galaxy may also rely on payment in lieu of taxes (PILOT) programs. This replaces property taxes with an annual lump sum paid by Project Galaxy to the County. But this could be much lower than the actual property taxes Project Galaxy would have paid.

For example, in neighboring Scioto County, OH, a data center got a 15-year, 75% property tax abatement and a PILOT of only $500,000 — much less than the taxes it would normally owe without this deal.

Huge Tax Breaks for Nothing in Return

One of the biggest talking points for data center developers is that these facilities will “bring jobs.” But these data center jobs are far fewer than developers let on, while tax breaks can divert millions of dollars from local coffers. 

Meanwhile, data centers demand large amounts of land, water, electricity infrastructure, roads, and even fire and emergency medical services, as Adams County would have to provide if Project Galaxy goes through. 

In nearby Jerome Township, OH — home to multiple Amazon data centers — the Township had to collect additional fees for the fire department because data centers needed inspections so often. If not negotiated with data centers beforehand, residents may bear the costs instead. 

At the same time, data centers are raising power bills and water bills across the country. They’re driving fossil fuel expansion, meaning dirtier air and worsening climate chaos. They’re worsening their neighbors’ quality of life with noise pollution and ruined landscapes. 

By enticing data centers with tax breaks, state and local officials are merely bringing expensive nuisances into our backyards, and they’re draining public funds to do it.

Data Centers and Tax Deals Are Shrouded in Secrecy

In the case of Adams County and so many other towns, these data center deals are happening under a veil of secrecy. Much of the information about the proposed Project Galaxy tax breaks is not publicly available and was only accessible with a formal records request under the Freedom of Information Act. 

Adding insult to injury, Amazon developers and Adams County officials have explicitly stated that they are “working behind the scenes” to “get ahead” of any public pushback to the project.¹Email exchanges between Adams County Economic Development Officer and representatives from Amazon. Obtained through FOIA request and on file with FWW.

Meanwhile, in neighboring Scioto County, County Commissioners approved tax breaks for Tilted Gate LLC, a real estate developer working on a Google data center, while under non-disclosure agreements. Commissioners signed abatement agreements without including economic impact assessments or cost-benefit analyses. 

People have a right to know about development that directly impacts them. But data center developers know that if this information were to become widespread, the pushback would grow even stronger. 

Local Officials Must Put People Over Profits and Pause Data Centers

The issue of tax breaks begs the question — why are local officials sacrificing millions in tax revenue that could benefit our schools, our water infrastructure, our roads, our firefighters, and our healthcare workers, to boost corporate profits?

Amazon, for instance, makes billions of dollars every year on artificial intelligence services provided from data centers like Project Galaxy. It’s becoming one of the largest companies in the world, and its founder and largest shareholder, Jeff Bezos, is one of the richest men on the planet. 

The fact of the matter is, data centers offer few positives and lots of negatives to local communities, while enriching Big Tech corporations and their ultrawealthy leaders. It’s absurd to offer these facilities lucrative tax abatements to come set up shop.

Ultimately, we need data center moratoriums. These pauses allow time for local officials to assess the impacts of data centers and ensure any development happens with the well-being of constituents, not corporations, top of mind. 

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