Tax breaks helping fuel Trump's latest tech push just landed in Dems' crosshairs

House Democrats are moving to stop data centers from receiving lucrative federal tax breaks as the artificial intelligence (AI) boom accelerates their expansion nationwide.The moves puts Democrats at odds with President Donald Trump as he makes data center facilities central to his American AI agenda.The administration has sought to accelerate data center development and streamline permitting as the U.S.

competes for dominance in the emerging tech industry.Reps.Kristen McDonald Rivet, D-Mich., and Don Davis, D-N.C., unveiled legislation Wednesday that would block data centers from tapping certain federal investment incentives.AMERICA'S REDDEST STATE CHASES BILLION-DOLLAR BOOM AS OTHERS SOUR ON MASSIVE EMERGING INDUSTRYData centers house the computing infrastructure that powers artificial intelligence and other digital services, with demand for the facilities surging across the country.

(Ulysse Bellier/AFP/Getty Images)The incentives in question weren't created specifically for AI or data centers.But the industry's massive infrastructure investments can qualify for these substantial tax benefits, which prompted Democrats to push to exclude data centers as concerns grow over electricity demand, water use and local development.The bill is backed by 21 additional House Democrats, including Ways and Means Committee member Rep.

Jimmy Panetta, D-Calif."Washington is giving handouts to big tech companies while American families are drowning.I hear that word in my district more than any other," McDonald Rivet said at a press conference on Wednesday."From rising costs, groceries, gas, housing, healthcare, and a lot more.

These are backward priorities and they're perfectly encapsulate everything that is wrong with the way Washington works, serving interests of big corporations and special interests at the expense of working people," she added.THIS TINY FARMING TOWN YOU’VE NEVER HEARD OF IS HELPING MICROSOFT SELL AMERICA ON DATA CENTERSData centers are expanding rapidly a...