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Data centers demand a massive amount of energy. Here’s how some states are tackling the industry’s impact.
States that offer tax exemptions to support the industry are reconsidering their approach.
Washington’s experience with addressing the power demand of data centers parallels the struggles playing out in other states around the country where the industry has rapidly grown and tax breaks are a factor. Inslee’s 2022 veto of a study similar to Virginia’s cited the fact that Northwest power planners already include data centers in their estimates of regional demand. Countries such as Ireland, Singapore, and the Netherlands have at times forced data centers to halt construction to limit strains on the power grid, according to a report by the nonprofit Tony Blair Institute for Global Change.
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