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1Fix the driver behind crashes, sound loss and screen glitches2Clear out junk files and repair common Windows errors3Scan for outdated or missing drivers - takes under a minuteA new report from Senate Democrats argues that state and local tax breaks for data-center construction are costing governments billions in revenue. Bloomberg Law reported the claim on October 9, 2026, naming Senators Chris Van Hollen and Elizabeth Warren among the lawmakers behind the report. The “billions” figure is the report’s characterization as summarized by Bloomberg Law—not an independently verified audit total.
What the Senate Democrats’ report argues
As quoted by Bloomberg Law, the report says: “Even though data center development is dominated by some of the wealthiest companies in the world, these same companies are not doing enough to pay their ‘fair share.’” It adds: “This leaves ratepayers, taxpayers, and local communities shouldering many of the costs while Big Tech reaps the benefits.” Those are the report’s fairness claims and framing, not neutral findings independently established by the available reporting.
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The core concern is distribution: companies receive tax benefits intended to attract or support development, while governments forgo revenue and communities may face other costs associated with growth. The report’s broad conclusion is clear, but its detailed calculations are not available in the coverage summarized here.
What is—and is not—known about the tax claim
Bloomberg Law’s October 9, 2026 report says the Senate Democrats’ report estimates billions in lost state and local tax revenue from data-center tax breaks. The available article text does not provide a precise total. It also does not establish which states or tax programs were counted, the period examined, the data sources, or the calculation method. The claim should therefore be understood as an attributed report estimate, not a confirmed nationwide audit result.
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Tax incentives are separate from electricity-system costs
Tax revenue is not the same thing as the cost of building or operating electricity infrastructure. In a separate 2026 statement, Van Hollen’s office said PJM had advanced $22 billion in transmission projects across three recent planning rounds, described as principally needed to serve data centers. The statement said roughly $2 billion of those costs were allocated to Maryland ratepayers. These are transmission-cost figures, not estimates of tax revenue lost to incentives.
The Maryland statement separately projected $1.6 billion in customer-bill costs over ten years for those projects, including $823 million assigned to residential customers—about $345 per average customer. That is a lawmakers’ projection about electricity bills, not part of the October report’s reported tax calculation.
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What lawmakers propose on energy costs
In a September 2026 statement, Van Hollen described his proposed Power for the People Act as an approach to prevent consumers from subsidizing Big Tech’s energy needs. It is a policy proposal addressing energy costs, distinct from the report’s claims about tax incentives. The two issues may both arise in debates about data-center growth, but they concern different public costs and should not be combined into one estimate.
What would be needed to assess the report’s estimate
A fuller evaluation would require the report’s underlying figures and method, including:
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- Which state and local tax provisions and jurisdictions were included.
- How the report defined a data-center tax break and the time period it covered.
- How it estimated revenue forgone, including any assumptions about projects that might not have proceeded without incentives.
- Whether projected tax benefits were compared with public costs or economic benefits using a consistent method.
Without those details, readers can report the broad claim and its attribution, but cannot independently reproduce the total or judge how the report treated competing costs and benefits.
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