Warren, Senate Democrats Seek AI Tax Break Details From Meta, Google, Amazon, Microsoft

The letters to the four companies' CEOs were also signed by Sens. Tina Smith, D-Minn., and Jeff Merkley, D-Ore. They seek information on tax deductions related to AI and data center development and on the companies' lobbying efforts before passage of the 2025 legislation, commonly called the "one big beautiful bill" act. Spokespeople for all four companies did not immediately respond to requests for comment. The White House also did not immediately respond to a request for comment. The lawmakers requested answers from each company by Oct. 12.

"Americans across the country are worried about the impacts of artificial intelligence (AI) on their lives — from increased utility bills to threats of job losses and cyberattacks," the lawmakers wrote. "But rather than meaningfully regulate Big Tech companies and slow down the mad rush to deploy this new technology, Republicans in Washington have passed tax subsidies for AI development and AI data centers."

The inquiry comes as Washington grapples with how to deal with AI and data center development, with public backlash becoming increasingly intense heading into the 2026 midterm election. Democrats are hoping to win back majorities in the House and Senate, though Republicans are still favored in most projections to retain the upper chamber, and have tried to distinguish themselves as the more pro-regulation party. Democratic 2028 presidential hopefuls like California Gov. Gavin Newsom have made statements and issued executive orders. Democratic congressional candidates, including Texas Senate Democratic nominee James Talarico and Ohio Senate Democrat Sherrod Brown, have hit their GOP opponents for past support of data centers.

Republicans, meanwhile, have called out Senate Democrats for blocking the quick passage of legislation that would create a framework states could choose to adopt to address rising data center-related utility costs. Sen. Martin Heinrich, D-N.M., blocked the legislation because he said it did not go far enough to protect consumers. The measure, called the Ratepayer Protection Act, may be taken up by the Senate again this week.

Warren has previously called for increased taxes on AI and data center developers and investigated ties between private equity and data centers. The letters follow reporting that corporate tax payments are falling this year amid rising revenue as tech companies make use of AI tax incentives. Corporate tax payments are down 25 percent this year, according to Warren's letter, which cites Politico reporting that quoted budget forecasters. The nonpartisan Congressional Budget Office in February projected that the federal government would collect 10.6 percent less in corporate income tax in 2026 compared with a year earlier, with the total projected to fall from $452 billion to $404 billion.

Meta paid $2.8 billion in federal income tax in 2025, down from $9.6 billion in 2024, while earning roughly the same profit both years. "This enormous tax cut appears to have been driven in significant part by President Trump and Republicans' tax breaks subsidizing your spending on AI," the lawmakers wrote to Meta CEO Mark Zuckerberg. "[Y]our company's capital expenditures, the 'vast majority' of which constitute data center construction and other AI spending amounted to an extraordinary $72 billion last year — much of which you may have been able to immediately deduct using OBBBA's corporate tax handouts."

Amazon, Meta and Microsoft are the top three data center companies in the U.S. by active IT capacity, according to the technology advising firm ABI Research. Google Cloud, which is part of Alphabet, is 10th. Pointing to corporate filings with the Securities and Exchange Commission, the lawmakers noted in their letter that Microsoft's current federal income tax expense dropped by over $11 billion from fiscal year 2025 to 2026; Amazon's federal income tax payment dropped by nearly $8 billion from fiscal 2024 to 2025; and Alphabet's combined current federal and state income tax expense dropped by over $7 billion in the same period.

The companies contributed $1 million each to Trump's inauguration and spent millions lobbying Congress and federal agencies before passage of the 2025 tax and spending bill, according to the letter. "Your company has spent lavishly to stay on the good side of President Trump, and it appears that you are now seeing your investment bear fruit," the lawmakers wrote.