‘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’

AI companies are costing states a fortune in lost tax revenue

by · TechRadar

News By Benedict Collins Published 9 September 2026

(Image credit: Shutterstock)

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  • 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.

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‘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 Ohio’s 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.

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 they’re 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.

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