---
title: Good Jobs First on the hidden costs of datacenter tax breaks
description: The America’s Work Force Union Podcast is the nation’s premier daily labor program. Greg LeRoy from Good Jobs First joined us on today’s show.
image: https://awf.labortools.com/hubfs/good%20jobs%20first%20blue%20mic.jpg
---

 1 min read

Season 6, Episode 134

# Good Jobs First on the hidden costs of datacenter tax breaks

[ awfblog ](https://awf.labortools.com/listen/author/awfblog)  July 7, 2025

[America's Work Force Union Podcast](https://awf.labortools.com/listen/tag/americas-work-force-union-podcast) [AWF](https://awf.labortools.com/listen/tag/awf) [Good Jobs First](https://awf.labortools.com/listen/tag/good-jobs-first)

![good jobs first](https://awf.labortools.com/hs-fs/hubfs/good%20jobs%20first.jpg?width=400&height=400&name=good%20jobs%20first.jpg)

 

Guest Name:

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Greg LeRoy

 Guest Website:

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[Good Jobs First](https://goodjobsfirst.org/) 

 Guest Social Media:

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[ Facebook](https://www.facebook.com/GoodJobsFirst/)

[ Twitter](https://x.com/goodjobsfirst)

[ YouTube](https://www.youtube.com/channel/UCIC2ZSqkUwB_JYfb2NJ0H_Q)

[ LinkedIn](https://www.linkedin.com/company/good-jobs-first/)

 Supportive Documents:

---

Greg LeRoy, founder of [Good Jobs First](https://goodjobsfirst.org/), joined the America's Work Force Union Podcast to discuss the trend of states losing billions in tax revenue to datacenter incentives, the potential impact on utility rates and the lack of incentive transparency in many states.

LeRoy explained that 10 states are already losing over $100 million in revenue annually to datacenter tax abatements, with some states, including Texas and Virginia, approaching $1 billion in annual tax revenue losses. He noted that as datacenters grow larger and more expensive, states are hemorrhaging far more tax revenue than initially anticipated through sales and use tax exemptions on equipment purchases. This trend is particularly concerning as federal fiscal changes set in, potentially forcing states to compensate for lost revenue through cuts to essential services.

The discussion also touched on the hidden costs of datacenters' massive electricity consumption. LeRoy warned that utility companies might pass on the costs of new generating capacity to ratepayers, potentially leading to higher electricity bills for small businesses and working families. He noted that in many states, the discounted electricity rates negotiated between utilities and datacenters remain secret, obscuring the true extent of this burden shift.

LeRoy expressed frustration with the lack of transparency regarding datacenter incentives in many states. Of the 32 states examined, he said 12 failed to provide basic aggregate data on revenue losses. LeRoy argued that this lack of disclosure violates accounting rules and hinders proper public scrutiny of these incentive programs. LeRoy emphasized the need for greater accountability and suggested that coalitions of activists, labor organizations and investigative journalists are working to challenge these opaque practices.

For more from LeRoy and Good Jobs First on the hidden costs of datacenter incentives, listen to the full episode above.

---

 America’s Work Force is the only daily labor podcast in the US and has been on the air since 1993, supplying listeners with useful, relevant input into their daily lives through fact-finding features, in-depth interviews, informative news segments and practical consumer reports. America’s Work Force is committed to providing an accessible venue in which America's workers and their families can hear discussion on important, relevant topics such as employment, healthcare, legislative action, labor-management relations, corporate practices, finances, local and national politics, consumer reports and labor issues.

 America’s Work Force Union Podcast is brought to you in part by our sponsors: AFL-CIO, American Federation of Government Employees, American Federation of Musicians Local 4, Alliance for American Manufacturing, Anthem Blue Cross Blue Shield, Brotherhood of Maintenance of Way Employes-IBT, Boyd Watterson, Columbus/Central Ohio Building and Construction Trades Council, Communication Workers of America, Mechanical Insulators Labor Management Cooperative Trust, International Association of Heat and Frost Insulators and Allied Workers Local 50, International Federation of Professional and Technical Engineers, International Union of Bricklayers and Allied Crafts, International Union of Painters and Allied Trades District Council 6, Ironworkers Great Lakes District Council, Melwood, The Labor Citizen newspaper, Laborers International Union of North America, The National Labor Office of Blue Cross and Blue Shield, North Coast Area Labor Federation, Ohio Federation of Teachers, United Labor Agency, United Steelworkers.

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