Data Centers’ Tax Loopholes Exposed | Lexington News

Lexington News Today | 2 Min News | The Daily News Now! · Aug 5, 2026 · 1m

Data centers are being hailed as golden revenue sources for states and local governments, promising big tax boosts—but behind the scenes, legal loopholes and aggressive tax breaks could erase most of that income. Companies are pushing to classify these facilities as “manufacturing” to snag massive energy and property tax exemptions, while industrial revenue bonds let them pay nearly nothing in local taxes for decades. While developers tout windfall profits, savvy legal teams may be quietly dismantling those promises—especially in states like Kentucky already offering generous perks. Listen in…