Meta Is Using Its Massive AI Data Centers to Avoid Paying Billions of Dollars in Taxes
As if AI data centers alone weren't infuriating enough. The post Meta Is Using Its Massive AI Data Centers to Avoid Paying Billions of Dollars in Taxes appeared first on Futurism .
The growth of AI industry's data centers has sparked controversy over tax avoidance. The New York Times reports that Meta, a leading player in the field, is utilizing a Reagan-era tax credit to claim billions of dollars in tax savings. The company is treating its massive data center projects as experimental "pilot models," thereby avoiding the onus of paying full taxes.
This tax break, originally aimed at supporting high-risk research, is being exploited aggressively by Meta and other tech giants. The IRS has previously penalized thousands of companies for similar practices, but Meta has managed to use the loophole for two successive years. In 2024, it saved $2 billion and in 2025, the figure surged to almost $4 billion.
Meta's spokesperson maintains that the company is investing heavily in research and development, creating jobs in America. However, the IRS is struggling to recoup the $355 million Meta saved in 2013 through another tax loophole. This tax avoidance tactic is part of a larger trend of inflated accounting practices within the AI industry, raising concerns about an impending AI bubble.
The controversy surrounding Meta's tax avoidance could exacerbate the public backlash against AI data centers, potentially influencing the upcoming midterm elections.
Written by urgent.news from Futurism's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
