They seem to have more money than God: AI companies face major reality check as states cut billions in tax exemptions with Bernie Sanders calling for regulation so tech billionaires no longer play God and determine the future
of humanity

Date:
Wed, 09 Sep 2026 18:35:00 +0000

Description:
AI companies have enjoyed tax exemptions for years, but now its time for them to pay up and face regulation, Sanders says.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter Multiple states have revealed tax exemptions have cost more than $1 billion in lost revenue, more than 10 times some estimates Data centers are 'playing God' with their frontier
models and need to face more regulation, Bernie Sanders says An Act issuing serious consequences, such as prison time and 'corporate death sentences',
has been submitted For many states across the US, the best way to lure lucrative investment from big tech companies was to provide tax exemptions on the equipment they would buy to furnish their data centers.

Before the AI data center boom, this was seen as a fair trade for citizens
and politicians alike. But now that multiple states have revealed they have missed out on billions in tax revenue the tune is quickly changing. Coupled with the growing national opposition movement , revelations that numerous construction sites have been using illegal generators, and frequent breakouts of AI models undergoing testing, it's no small wonder that politicians across the country are calling for greater regulation and greater taxation on big tech and AI. Latest Videos From TechRadar Watch full video here: They seem to have more money than God Ohio is the catalyst for this exemption withdrawal. The state projected the tax exemptions would cost them just $136 million in lost revenue for 2026 - a worthy cost to attract new investment and potential jobs for a state that has seen a long-term decline in its traditional industries and slow recovery following the 2008 financial crisis.

The loss in tax revenue turned out to be $1.6 billion - 10 times more than expected, or just over 5% of Ohios total tax revenue for the 2026 fiscal
year. Following the revelation and associated public fallout , Republican
Gov. Mike DeWine issued a pause on applications for the sales tax exemption. You may like A torrent of states are repealing data center tax exemptions
but it could increase costs by upwards of 7% AI data center backlash has cost tech firms $130 billion in three months SuperPACs are funneling millions of dollars into pro-AI candidates, with Trump saying communities that reject
data centers will end up backwards and poor

But Ohio representatives, such as Democratic Rep. Tristan Rader, believe
there is more to be done. Rader has called for a renegotiation on the tax exemptions offered to hyperscalers such as Amazon , Meta, and Google . They seem to have more money than God and theyre able to build without the need
for these types of incentives, Rader said (via WSJ ).

Rader is now calling for AI data centers and their respective companies to face additional requirements before projects are approved, including higher taxation and requirements that companies pay more for the energy infrastructure they rely upon. Are you a pro? Subscribe to our newsletter
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Ohio isnt alone in losing out on such a significant sum. In 2021, Virginias data center tax exemptions were predicted to cost $57 million, and Georgia predicted a tax revenue loss of just under $500 million in 2025. Both states have revealed their data center tax exemptions have led to a tax revenue loss of almost $2 billion each . Texas has seen just over $1 billion lost in tax exemptions for data centers.

But extra taxes arent the only repercussions hyperscalers and AI companies
are facing. We cant allow a handful of greedy people to play God Senator Bernie Sanders has renewed his calls for greater regulation on AI technologies. Meta, OpenAI, and Anthropic have all recently revealed that their frontier AI models have escaped testing environments and wreaked havoc on third-parties. What to read next This new bipartisan act wants to force US AI companies to pay for the energy they use Trump warns communities opposed
to data centers are making a mistake but Texas Gov. Greg Abbott says data centers got the backlash they deserve 'Let data reign'; Trump warns that
those who don't let AI data centers proliferate will end up 'backwards and poor'

There are also concerns that the guidelines behind the Trump administration's testing of AI tools could be hiding corruption, with Sanders stating that the control of AI technology is driven by oligarchy & the power of Big Tech billionaires.

In a post on X , Sanders wrote, We can't allow a handful of greedy people to play God & determine the future of humanity. Sanders also said that CONGRESS MUST ACT in a post accompanying the announcement of the Ban Artificial Superintelligence Act, sponsored by Sanders and Rep. Greg Casar. The most pressing issue of our time is oligarchy & the power of Big Tech billionaires over AI.We cant allow a handful of greedy people to play God & determine the future of humanityour economy, environment, democracy, privacy & morewithout public input.CONGRESS MUST ACT. September 7, 2026 The act seeks to pace US artificial intelligence development in line with international agreements,
and implement export controls that would prevent AI superintelligence being developed anywhere in the world. The ultimate goal of the act is to prevent the development of AI technologies that exceed humanities control.

Casar added that, Despite its potential deadly consequences, cutting-edge AI technology is less regulated than the average food truck.

The Act also goes a step further than previous attempts at regulating AI . Companies and individuals who fail to align themselves with the Acts regulations would face repercussions such as prison sentences of up to 20 years and, as Sanders put it, a corporate death penalty. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.



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