What's more, having a statutory abatement is only one way to get around property taxes. What you also see are things like a industrial revenue bonds. Those don't require a special law. They just shift the tax burden to the public.
Again, the idea here is that you're incentivizing investment and that will be offset by (a) jobs created by the facility, since labor doesn't get any tax abatement or deferment, (b) they will be bringing goods and service production to the area, and (c) eventually they will pay property taxes. For something like a traditional auto factory, that's a great incentive.
The issue is that data centers have almost no local labor required. A single McDonald's is likely to employ more individuals than a data center will. And the service they provide is essentially independent of the location. It doesn't matter if it's nearby. That provides almost no advantage. And with such a small labor pool and such a large potential tax burden, there may be no economic incentive to remain in the location instead of building a new data center by the time you reach the end of the abatement.
This notion that legislatures are blind to the number of jobs that will be created is contradicted by your previous link. You can scroll through table 2 for this- Alabama expects 20 jobs, Georgia 5-25, Nevada 10, etc. These states don't seem at all confused about how much local labor is required. And this is what they're setting as minimums; they believe that, absent mandate, the data centers would provide fewer jobs than these numbers.
Any source that they're confused about (b)? I believed you about (a) until I read your source- the notion that they're getting misled by construction job numbers was plausible- but I can't imagine how a government would be so fundamentally confused about what data centers are as to believe they'll provide local services or somehow goods.
What seems more likely to me is that the states/counties/cities believe that they will take in enough tax revenue while providing very little back in government resources that throwing in a discount works out just fine economically. I don't think you've made much of a case otherwise.
Most states have some form of this in general: https://www.michiganbusiness.org/services/pa-198/
What's more, having a statutory abatement is only one way to get around property taxes. What you also see are things like a industrial revenue bonds. Those don't require a special law. They just shift the tax burden to the public.
Again, the idea here is that you're incentivizing investment and that will be offset by (a) jobs created by the facility, since labor doesn't get any tax abatement or deferment, (b) they will be bringing goods and service production to the area, and (c) eventually they will pay property taxes. For something like a traditional auto factory, that's a great incentive.
The issue is that data centers have almost no local labor required. A single McDonald's is likely to employ more individuals than a data center will. And the service they provide is essentially independent of the location. It doesn't matter if it's nearby. That provides almost no advantage. And with such a small labor pool and such a large potential tax burden, there may be no economic incentive to remain in the location instead of building a new data center by the time you reach the end of the abatement.