A longstanding formula that has driven economic growth for decades is coming under pressure as data centres reshape the relationship between state governments and the businesses they court. For roughly 30 years, the state has offered tax breaks, streamlined permitting, and other incentives to attract corporate investment, a strategy that has delivered jobs and revenue. But the explosive growth of data centres — which demand enormous amounts of electricity, water, and land — is forcing communities and policymakers to confront whether the benefits still outweigh the costs. The tension is particularly acute in regions where data centre construction has outpaced local infrastructure, raising questions about who bears the burden of rising utility bills, grid strain, and environmental impact.
For 30 years the state has profited from going the extra mile for business. Data centres are putting that to the test
