Meta accused of using data centers to avoid taxes

Meta Platforms Inc. reportedly saved $2 billion in taxes in 2024
and another $3.9 billion in 2025 by classifying its artificial
intelligence data centers as “pilot models,” The New York Times
reported on Wednesday, citing people familiar with the matter.

According to the report, the tech giant used the U.S. Research
and Experimentation Tax Credit, a program introduced in 1981 to
encourage technological innovation and strengthen the country’s
competitiveness.

The tax credit is generally intended to support companies that
invest in research and development. Meta reportedly applied it to
the construction and development of its AI data centers, arguing
that the facilities were part of experimental projects.

However, the company’s own financial filings acknowledge that
some of these tax benefits could later be challenged or reversed by
the U.S. Internal Revenue Service (IRS). Meta has cited
“uncertainties with our research tax credits” in its filings.

The New York Times also reported that Meta did not respond to
questions about what specifically made its AI data centers
experimental enough to qualify for the tax credit.

The case highlights how the rapid expansion of artificial
intelligence is creating new challenges for tax authorities. AI
data centers require enormous amounts of computing power,
electricity, and investment, raising questions about how
governments should classify such infrastructure under tax rules
that were created decades before modern AI existed.

If the reported figures are accurate, Meta’s tax savings over
the two years would total approximately $5.9 billion, making the
issue potentially significant for both the company and U.S. tax
authorities.

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