House Democrats Target Federal Tax Breaks for Data Centers Amid AI Boom

House Democrats unveiled a bill on Wednesday that would bar data‑center operators from accessing certain federal investment incentives, a move that directly counters President Trump’s push to make data‑center facilities a cornerstone of his American AI agenda. The legislation, introduced by Representatives Kristen McDonald Rivet of Michigan and Don Davis of North Carolina, is backed by 21 other Democrats, including Ways and Means Committee member Jimmy Panetta. Democrats argue that the AI‑driven expansion of data centers strains local electricity and water supplies and bypasses community input on land use. They contend that the tax benefits, originally intended for broader infrastructure projects, disproportionately favor large tech firms. The bill is now slated for debate in the House, where it could reshape the financial incentives that have accelerated data‑center growth across the country.