The push to reconsider tax incentives for data centers is spreading to more states with no signs of letting up.

Lawmakers in at least six states are either considering bills this year that would reduce data center tax breaks or planning to introduce such bills next year.

Both Democratic and Republican supporters of the bills say massive server warehouses built by tech companies to power artificial intelligence don’t need taxpayer support.

“I don’t think data centers need incentives,” Kentucky Gov. Andy Beshear, a Democrat, said last month during a press conference. “I don’t think we should be providing them, and so I would certainly support rolling back any of that.”

A growing number of elected leaders are talking about shrinking or scrapping data center tax breaks as more people turn against the facilities. More than two-thirds of Americans now say they oppose data centers in their neighborhoods, citing concerns about water use, electricity demand and the impact on the landscape, among other factors.

Kasia Tarczynska, senior research analyst for Good Jobs First, a nonprofit that researches corporate tax breaks, said rolling back data center subsidies could also help states hold on to revenue needed for other purposes, such as funding social services.

“Policymakers are finally realizing that these subsidy programs are extremely costly,” Tarczynska said. “They have a huge impact on state budgets.”

Data center industry advocates say state and local governments that jettison data center tax breaks risk losing out on projects that can boost construction jobs, property tax revenue and economic development.

President Donald Trump has said communities that reject AI data centers “want to end up being backwards and poor.”

As of early April, 38 states exempted certain data center equipment purchases from the state sales tax, according to the National Conference of State Legislatures. Eleven states also offered data centers property tax breaks.

The tax breaks have become increasingly expensive for states as data center construction has exploded, Tarczynska’s research has found. Tech companies are spending trillions of dollars worldwide to build data centers needed to power artificial intelligence and other advanced software.

State leaders began slamming the breaks on the tax breaks this year.

Alabama, Maine, New Jersey, North Carolina and Washington state all enacted legislation that repealed or limited certain data center tax breaks. Arizona froze new incentive awards for three years.

And the governors of Illinois, Massachusetts, Nebraska, Nevada and Ohio announced they were pausing or adjusting tax breaks for new data center projects.

The debate over data center tax breaks is set to continue this fall and into next year.

Proposals to limit tax incentives for data centers are still pending in Ohio and Pennsylvania, while a Michigan Republican has said he plans to introduce a repeal bill soon.

Elected leaders in at least three other states — Nevada, New York and Kentucky — have said they plan to introduce legislation next year that would eliminate or scale back tax breaks for new data center projects.

In Nevada, an interim committee recently voted to draft legislation that would halt data center development and end tax breaks for the facilities. The bill will be considered when the Legislature reconvenes in 2027.

Democratic Sen. Dina Neal, who chairs the Joint Interim Standing Committee on Revenue, said tech giants don’t need public subsidies, and data centers use up water and electricity communities need.

“Water is not something we can get back,” Neal said, according to KTNV.

Republican Assemblymember Lisa Cole, voted against drafting the bill. She said she’d prefer to push data centers to conserve water and ensure their electricity use does not drive up costs for everyone else.

“I’d rather modernize that framework than shut the door on an industry already supporting tens of thousands of Nevada jobs and creating real revenue streams for our local jurisdictions,” Cole said.