alt Hacker NewsProperty tax is the dominant method for local governments to capture the value of hosted commercial activity.
You don’t need a high rate to capture plenty of value out of a $multi-billion data center.
The problem is mostly on the electricity side, with highly regulated utilities not prepared (on the regulator or regulated sides) to respond to such a large shock to demand. Utilities are typically regulated at the state level.
They keep negotiating payments-in-lieu-of-taxes to dodge fair tax rates and grab special treatment, so we do see a loss in value there over decade(s) in many cases.