How a Washington Tax Break for Data Centers Snowballed Into One of the State’s Biggest Corporate Giveaways
Companies have saved $474 million since 2018, with most of the windfall going to Washington-based tech giant Microsoft. Lawmakers repeatedly expanded who qualifies, and they lowered the number of jobs expected in return.
In 2010, Washington state lawmakers passed a tax break for data centers, citing the promise of high-paying, long-term, and environmentally friendly jobs in distressed rural areas. However, a recent investigation by The Seattle Times and ProPublica revealed that the tax break has strayed from its original intentions, with limited job creation and a lack of transparency and accountability. The data center industry's demand for electricity is also threatening the state's efforts to transition to a carbon-free power grid. While proponents argue that the industry has brought new revenue and jobs to rural counties, critics question the necessity of the tax break and the lack of oversight and evaluation. Washington's data center tax break has grown significantly, with the state giving away more than $474 million since 2018, mainly to Washington-based Microsoft. The lack of transparency and accountability in the tax break program has led to concerns about its effectiveness and whether it aligns with the state's environmental goals.