Meta, Google, Amazon, Microsoft draw Sen. Warren questions about AI tax subsidies

Sen. Elizabeth Warren, D-Mass., speaks with CNBC on June 24, 2026.

CNBC

Senate Democrats are seeking information on how artificial intelligence and data center spending by Meta, Amazon, Alphabet and Microsoft has been subsidized by tax breaks authorized in the 2025 tax cutting and spending package passed by Republicans at the behest of President Donald Trump.

Sen. Elizabeth Warren, D-Mass., led the letters, which were sent Sunday night and shared exclusively with CNBC, to the CEOs of the four companies asking for information on tax deductions they've claimed related to AI and data center development and on their lobbying efforts in the lead-up to the passage of the 2025 legislation, known more commonly as the "one big beautiful bill" act.

Sens. Tina Smith, D-Minn., Jeff Merkley, D-Ore., Elissa Slotkin, D-Mich., Bernie Sanders, I-Vt., and Richard Blumenthal, D-Conn., joined the letters.

"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 in the letters. "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."

Spokespeople for all four companies did not immediately respond to a request for comment. The White House also did not immediately respond to a request for comment.

The probe comes as Washington grapples with how to deal with AI and data center development, as public backlash has become increasingly intense heading into the 2026 midterm election.

Democrats are hoping to win back a majority 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. And Democratic congressional candidates — including state Rep. James Talarico, the Democratic nominee for Senate in Texas, and Sherrod Brown, the Democrat running for Senate in Ohio — have hit at their GOP opponents for their 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 didn't go far enough to protect consumers. The measure, dubbed 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.

Her letter on Monday follows 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's reporting quoting budget forecasters. The nonpartisan Congressional Budget Office in February projected that the federal government would collect 10.6% 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, for one, 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 in their letter 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 in their letter note 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 in the lead-up to the 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.

They requested answers from each company by Oct. 12.