Source: NYT > Business (paywall)
As massive AI infrastructure becomes a municipal asset rather than purely private property, localities are weaponizing their control over land, power grids, and water to extract revenue shares and workforce commitments from tech companies. This marks a reversal of the subsidy playbook—historically, states competed downward on tax incentives to attract data centers; now they're organizing collectively to raise their price, with concrete leverage in the form of environmental constraints and grid capacity that can't be bypassed by moving operations overseas.