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A new Senate Democrats’ report argues that state and local tax breaks for data-center construction are costing the public billions in revenue. Bloomberg Law reported the claim on October 9, 2026, and named Senators Chris Van Hollen and Elizabeth Warren among the lawmakers behind the report. The available coverage does not provide a precise total or enough detail to independently assess how the figure was calculated.
What the report says about data-center tax breaks
As summarized by Bloomberg Law, the report argues that generous state and local tax incentives for data-center construction are costing billions in tax revenue. That is the report’s conclusion as described in the coverage—not an independently verified audit result. The article text available here does not specify which states or tax programs were counted, the time period examined, or the method used to estimate the revenue impact.
The report frames the issue as a question of who benefits from public incentives and who bears the costs. It 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,’” and adds, “This leaves ratepayers, taxpayers, and local communities shouldering many of the costs while Big Tech reaps the benefits.” Bloomberg Law attributes both statements to the report; they express its argument rather than a separately established finding about every data-center project.
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Tax revenue and electricity costs are separate issues
Tax incentives affect public revenue; transmission spending and customer bills concern electricity infrastructure. They may both feature in debates over data-center growth, but the figures describe different costs and should not be added together or treated as one estimate.
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In a separate 2026 statement, Van Hollen’s office said PJM had advanced $22 billion in transmission projects across three recent planning rounds, principally to serve data centers, and that roughly $2 billion was allocated to Maryland ratepayers. That statement separately estimated $1.6 billion in Maryland customer-bill costs over ten years, including $823 million for residential customers—about $345 per average customer. These are claims about transmission costs, not estimates of tax revenue lost to incentives or part of the October report’s calculation. See the Maryland delegation statement.
What lawmakers propose on energy costs
Van Hollen’s September 2026 statement described his proposed Power for the People Act as a way to prevent consumers from subsidizing Big Tech’s energy needs. It is a proposed policy response to electricity-cost concerns, not a finding of the tax report. The two issues—tax incentives and energy infrastructure costs—require separate evidence and accounting.
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What is not established by the available coverage
The Bloomberg Law coverage supports the report’s broad “billions” characterization, but does not establish a precise total, identify the states and tax provisions included, or explain the data and methodology behind the estimate. It also names Van Hollen and Elizabeth Warren without establishing a complete author list. Without those details, readers cannot compare the reported estimate with the cost of specific incentives or determine how the report treats project-specific benefits and public costs.
The figures on Maryland transmission projects do not fill those gaps: they address electricity-system costs, not forgone tax revenue. A sound assessment of the report’s tax claim would require its underlying calculations and comparable state-by-state information.
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