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Month: April 2025
As the AI boom continues to escalate, states have rushed to entice data centers with juicy tax breaks. Data centers not only provide cloud based storage, but also power the training of increasingly powerful AI models. Lawmakers in more than 30 states have carved out tax incentives for data center companies, arguing that without them, the data centers wouldn’t come—and that their presence is essential toward growing property and income tax revenue, and driving economic development.
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But some economists and policy experts have started to question this logic. In a new study from Good Jobs First, a nonprofit research group, authors Greg LeRoy and Kasia Tarczynska find that data center tax breaks have swelled to billions of dollars in lost revenue for states a year—and that those losses, for some states, actually outweigh the tax revenue that the data centers bring in.
“It’s a billion-dollar subsidy to the industry that is dominated by a few big tech companies,” says Tarczynska.
Conversely, other economists and data center lobbyists argue that the industry’s overall impact vastly outweighs those potential losses, including by supporting local infrastructure and catalyzing further investment. The paper’s authors contend that even if there are positives, the public doesn’t yet know the extent of their costs, which are often obscured by tax privacy laws, confidentiality agreements or a sheer lack of research.
“All politicians and corporations want to talk about are the benefits, while ignoring or downplaying the costs of development subsidies,” LeRoy writes in an email to TIME. “Let the companies compete on quality and price, not on how much they can extract from taxpayers and distort economic development and land use.”
‘Up and up and up’
Many data center agreements are shrouded in secrecy, which means that the paper’s authors had limited data to draw from. At least 12 states, Leroy says, share no data on tax expenditures for data centers at all.
But by looking through state budgets and other fiscal reports, the paper’s authors found that at least 10 states are missing out on $100 million per year in tax revenue. Much of this comes from subsidies for equipment like expensive servers, which need to be swapped out every few years. Many of these exemptions are uncapped in terms of their dollar amounts or time limit. This means that as data centers grow in size and power, so do the subsidies, forcing states to drastically recalculate their budget projections. In Texas, the cost projection for its data center sales tax exemption program increased from $157 million in 2023 to $1 billion this year.
“These hyperscalers come and spend a lot of money, and the tax breaks are going up and up and up,” says Tarczynska.
Data center proponents offer several rebuttals. First, they argue that most states already offer tax exemptions for manufacturing equipment—and these new carveouts are simply bringing the data center industry in line with those rules. They also argue that without subsidies, data center companies would set up shop elsewhere. In 2022, a tax incentive evaluation study from the Carl Vinson Institute of Government at the University of Georgia found that 90% of data center activity in Georgia was due to the incentive—implying that without those tax breaks, all of that business would essentially vanish.
However, there is debate in economic circles around how much incentives actually cause economic activity. A 2018 paper from the economist Timothy Bartik found that the percentage of firms who made a location decision based on an incentive was much lower than the Vinson number: between 2 and 25 percent. “You need to allow for the fact that for some incentives, you would have gotten some data center activity anyway,” Bartik tells TIME. “My view is that there are potentially some fiscal benefits of data centers, but the industry is vastly overstating them.”
Read More: Inside Amazon’s Race to Build the AI Industry’s Biggest Datacenters
A debate in Georgia
Data centers are a particular point of contention in Georgia, where they are growing at an unprecedented rate, particularly in the Atlanta metro area. State reports show that data center incentives have waived at least $163 million in local state and sales tax collections each year since 2022. The Governor’s Office of Planning and Budget estimates those incentives will surpass $327 million next year.
Last year, Georgia state senate finance committee chairman Chuck Hufstetler, a Republican, spearheaded efforts to scrutinize tax breaks, resulting in the state legislature passing a bill halting tax breaks to data centers for two years. But Governor Brian Kemp vetoed it, saying that it would harm investment plans.
Hufstetler tells TIME that the incentives are unnecessary. “The thing I’ve seen is that it’s a competition of who can build it the quickest. It’s more important to them that they’re built first versus the cost,” he says. “I’m not opposed to data centers. But if they’re going to come, it shouldn’t be on the backs of local people, and they should be paying all their costs.“
Georgia state senator Sally Harrell, a Democrat, agrees, and contends that data centers do not provide long term jobs or serve local businesses. Data centers typically employ just a few dozen workers, which pales in comparison to factories of similar sizes. “The local community is left footing the bill for big, national companies that generate economic activity elsewhere,” she writes in an email to TIME.
The aforementioned 2022 Vinson study in Georgia found that the amount of revenue forgone due to exemptions far exceeded the tax revenue generated by data centers, resulting in a negative state fiscal impact of $18 million in 2021. The study argued, however, that because the data centers would mostly not have been established without the incentive, their overall economic impact was significantly positive.
Nathan Jensen, a professor at the University of Texas Austin, argues that this line of reasoning is flawed. “It’s always a bit of a trick where they cite the economic impact: You could go to a Walmart parking lot and throw $100 in the air, and that would have a net positive economic impact,” he says. “The key is the fiscal impact: does the state make its money back?”
Read More: How AI Is Fueling a Boom in Data Centers and Energy Demand
A defense of data centers
Stephen Hartka, vice president of research at the Virginia Economic Development Partnership, has a different perspective. He says that the “overwhelming majority” of data centers in Virginia were brought to the state by incentives. He argues that economists who only look at state tax revenues miss the fact that Virginia’s tax structure sends more benefits to smaller localities—who especially benefit from the property taxes that data centers pay.
He also says that data centers can be particularly valuable in rural areas that have struggled to attract businesses. “Data centers are a very good fit for these rural areas, because they don’t require a lot of people and they generate a ton of revenue for local governments,” he says. “They are financial boons to these communities that might not have many other options.”
However, there has been a groundswell of activism against data centers in many Virginian communities. Last year, Ian Lovejoy, a Republican state delegate in Virginia, told TIME that data centers were the “number one issue we hear about from our constituents.” Residents expressed concerns about data centers threatening electricity and water access, and worried that taxpayers may have to foot the bill for future power lines. Across the country, communities have complained about data centers emitting pollutants and harming quality of life.
LeRoy, the author of the Good Jobs First study, cautions localities from making “land use decisions based not on jobs or quality of life, but on how much they can get in tax revenue from a particular use.” He points to a precursor: when localities rushed to build malls and big-box retail centers for the sales and property taxes they brought in, only for them to be deserted when e-commerce took its place.
The direction of data centers and their national expansion is still hazy. But watchdogs like LeRoy and policy experts like Jensen wish that more data was provided about the massive tradeoffs that states are making, and whether they are worth it. “I think the simple story is these are heavily subsidized capital intensive investments, which makes a pretty tough value proposition for communities,” Jensen says. “Because it’s the tax revenues that are the biggest benefit, and you’re giving a ton of that back.”
We’re here to recap an eventful Night 1 of the NFL draft, which ended with a new Giants quarterback (maybe not the one you expected).
A coalition of international environmentalists is sounding the alarm over the impact of large-scale dam construction in Central Asia, warning that it could cause irreversible harm to the Western Tien Shan, a UNESCO World Heritage Site jointly shared by Kazakhstan, Kyrgyzstan, and Uzbekistan.
Dam Projects Multiply Across Region
According to a recent report by the coalition Rivers Without Boundaries, dozens of new hydropower projects are either in development or under construction across the region. The group says this wave of dam-building poses a significant threat to the unique ecosystems and biodiversity of the Western Tien Shan, which was inscribed on the UNESCO World Heritage List in 2016 due to its exceptional natural value.
The report identifies more than five dams already constructed in recent years, with an additional 15 to 40 projects currently in the pipeline. These developments are affecting key river systems, including the Chatkal, Ugam, Pskem, and Aksu, which play a vital role in sustaining the region’s delicate ecological balance.
Protected Areas Under Pressure
Some of the most contentious projects are unfolding inside or near designated conservation zones. In Kyrgyzstan, a dam is planned within the Besh-Aral Nature Reserve, while gold mining activities have already degraded parts of the Chatkal River valley. In Kazakhstan, officials are considering a series of dams in Sayram-Ugam National Park. Uzbekistan is also pressing ahead with new hydropower schemes, including one on the Pskem River, drawing criticism from environmental advocates.
“Short-term economic goals are being prioritized over the long-term need to protect this globally important natural area,” said Eugene Simonov, international coordinator of Rivers Without Boundaries. He urged UNESCO and the broader international community to intervene before further damage is done.
Threats to Rare Species and Ecosystems
Environmentalists argue that dam construction is fragmenting river systems and isolating animal habitats, particularly those of rare and endemic species. The snow leopard and several native fish species are among the wildlife at risk. Floodplain forests and wild fruit tree habitats, critical components of the area’s biodiversity, are also under threat.
Alexander Kolotov, regional director of Rivers Without Boundaries, highlighted the dangers of building dams within protected national parks. “We are not properly measuring the impact on fish and river ecosystems,” he said. “If this continues, we could lose many species forever.”
Legal and Diplomatic Concerns
The group further contends that several dam projects may be violating international agreements, including the World Heritage Convention and the Espoo and Aarhus Conventions. These treaties require environmental impact assessments, public consultation, and cross-border cooperation, all of which may be lacking or inadequately implemented.
Rivers Without Boundaries has formally petitioned UNESCO to add the Western Tien Shan to its List of World Heritage in Danger. The proposal is expected to be reviewed at the UNESCO World Heritage Committee session scheduled for July 2025.
Previously, Evgeny Vinokurov, Vice-Chairman and Chief Economist of the Eurasian Development Bank, issued a stark warning about Central Asia’s looming water and energy crisis, noting that regional development must be carefully balanced with environmental protection.
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Kyrgyzstan is set to host its first-ever ultramarathon around Issyk-Kul Lake, one of the world’s largest high-altitude lakes, between May 5 and 10. The event, titled the 1st Issyk Kul Six-Day Challenge, is billed as the world’s longest six-stage foot race, covering a total distance of 460 kilometers.
The ultramarathon will take place over six days and six grueling stages: 90 km, 74 km, 87 km, 85 km, 79 km, and 45 km. Participants will race on a mix of asphalt, gravel roads, and dirt trails at elevations reaching up to 2,000 meters above sea level. Participation is capped at 100 runners.
The racecourse has been carefully planned not only to circumnavigate the entire lake but also to showcase some of Kyrgyzstan’s most dramatic landscapes, including the otherworldly Fairy Tale Canyon and the striking rock formations of the Seven Bulls.
“Issyk-Kul has been a place of power for many great marathoners, including Olympic champion Valentina Egorova and Olympic bronze medalist Satymkul Dzhumanazarov,” said Alex Golowin, Race Director and Head Coach at Running Expert. “We at Running Expert have been coming here for years to train for both marathons and ultras. The working altitude, mild weather, food familiar to Europeans, and the stunning nature make training here not only effective but also inspiring.”
Organizers hope the event will help establish Kyrgyzstan as an emerging destination for sports tourism, drawing endurance athletes from around the world to the heart of Central Asia.
The assassination attempt on the deputy akim (head of the local government) in Shymkent, Kazakhstan’s third-largest city with a population exceeding one million, has drawn intense public attention. Shymkent, designated a city of republican significance, rarely sees violence of this nature targeting high-ranking officials.
Ruslan Berdenov, the official in question, was wounded by shotgun fire from a smoothbore weapon on the steps of the city administration building, which struck him in the thigh and the shoulder. The attack appears less like a calculated contract killing and more like an act of personal retribution.
Despite its entrenched presence in Russian criminal culture, the phenomenon of contract killings has not firmly taken root in Kazakhstan or the broader Central Asian region. Nonetheless, several contract-style assassinations have left a deep imprint on the public consciousness. The following cases are among the most significant.
Alexander Svichinsky
On December 28, 1992, Alexander Svichinsky, the general director of the Karaganda Metallurgical Plant, was gunned down in Temirtau. This was the first confirmed contract killing in post-Soviet Kazakhstan.
Svichinsky, who had risen through the ranks at Karmet Combine from mechanic to general director, had recently succeeded Oleg Soskovets, who later served in both the Kazakh and Russian governments. He was shot in the back of the head at the plant’s gatehouse.
President Nursultan Nazarbayev took personal control of the investigation. Gabdrakhim Mendeshev, a veteran criminal investigator, eventually uncovered the truth: the hit was arranged by a demoted former deputy of Svichinsky. The intermediary, a driver at the plant, enlisted three Lithuanian nationals staying at a local hotel to carry out the murder.
Following Svichinsky’s death, the plant’s fortunes declined. It was eventually sold to Indian industrialist Lakshmi Mittal’s Ispat Corporation.
Iosif Milgram
A year later, in December 1993, Almaty saw its first major contract killing. Iosif Milgram, the head of the Almatygorstroy construction firm, and his driver Dmitry Tarasov were murdered in the courtyard of Milgram’s home.
The case went unsolved until 1998 when a traffic stop led to the arrest of Zakir Salakhutdinov.
After killing a police officer during the stop, Salakhutdinov was detained and eventually confessed to the murder of Milgram. Investigators discovered that Milgram had accused his business partner, Valentin Li, of embezzlement. Li allegedly paid Salakhutdinov $20,000 to carry out the killing.
In 1999, Salakhutdinov was sentenced to death and Li received a 15-year sentence, although he was released early due to illness.
Nurlan Turysov
In 2002, businessman Nurlan Turysov and his wife Bayan Atabaeva were murdered in their Almaty apartment.
Turysov was the son of Karatay Turysov, a prominent political figure in Soviet Kazakhstan who had served as vice-premier of the republic’s Council of Ministers. Investigators believe Turysov was acquainted with the killers, as he let them in himself. He was shot twice in the temple and once in the back of the head. Hearing the shots, his wife attempted to flee and was attacked at the window, stabbed, and then shot in the head.
The apartment was ransacked, suggesting the killers were searching for something specific. According to their driver, the couple had planned to travel to Astana that evening; tickets were found in Turysov’s pocket. He had just returned from a conference in Bishkek on Central Asian cooperation in metrology, standardization, and certification.
Five years later, the murder weapon surfaced during a violent conflict in the village of Malovodnoye (now Kazatkom), where five people were killed. Ballistics linked the TT pistol used in that clash to the murders of Turysov and Atabaeva. The weapon was traced to Takhir Makhmakhanov, who remains on the interstate wanted list.
Yerzhan Tatishev
In 2004, the death of prominent banker Yerzhan Tatishev was initially ruled a hunting accident. According to that version, Tatishev was shot in the face by a shotgun handed to him while hunting wolves from an SUV.
Years later, however, Muratkhan Tokmadi, a businessman with a criminal background, admitted the killing was deliberate. Tokmadi claimed the murder had been ordered by Mukhtar Ablyazov, Tatishev’s former business partner and erstwhile head of BTA Bank.
Ablyazov had earlier lost his share in the bank amid political pressure and left the country, only to return following Tatishev’s death to head BTA. He later faced embezzlement charges and again fled Kazakhstan.
In 2018, a Kazakh court found Ablyazov guilty in absentia of orchestrating Tatishev’s murder and sentenced him to life imprisonment.
In total, Ablyazov stands accused of having embezzled up to $10 billion. Despite having judgments against him totaling $4.9 billion in Britain alone, over a decade since he fled the UK on a fake passport to avoid three concurrent 22-month sentences for contempt of court, the former Minister for Energy, Industry and Trade in Kazakhstan – who has done business with multiple individuals sanctioned in the West – remains a free man, bemoaning his plight to be a case of “political persecution”.
Altynbek Sarsenbayev
The most politically sensitive case came in 2006 with the murder of former Minister of Information Altynbek Sarsenbayev and his two aides. Initially, Senate Chief of Staff Yerzhan Utembayev was convicted as the mastermind, and former police officer Rustem Ibragimov received a life sentence as the triggerman. The case quickly became a lightning rod for political debate.
Later, developments shifted the blame to Rakhat Aliyev, the controversial former son-in-law of President Nazarbayev. Sarsenbayev’s colleagues in the opposition had long pointed to Aliyev as a more likely suspect.
In 2014, Utembayev’s role was reduced to that of an accomplice, and in 2015, Aliyev was found dead in an Austrian detention center under suspicious circumstances.
Reprimand and Dismissal Linked to Berdenov Attack
The attack on Ruslan Berdenov is believed to have stemmed from the reprimand and subsequent dismissal of Yernar Zhienbay, a former municipal construction company director. The suspect was detained after being stopped by Berdenov’s driver. Berdenov remains hospitalized in a serious condition, while investigations continue to uncover further details.
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