Meta avoids billions in federal taxes by classifying data centers as experimental, NYT finds

Meta has been classifying its massive data centers as research and experimentation facilities, a move that has allowed the company to shave billions off its federal tax bill. A New York Times investigation published in July 2026 laid out how the company’s sprawling AI infrastructure push comes paired with a sophisticated playbook for minimizing what it owes the government. The centerpiece of the strategy is Meta’s Hyperion AI campus in Richland Parish, Louisiana, a facility projected to cost more than $50 billion and eventually support up to 5 gigawatts of computing capacity. The Louisiana deal and Project Sucre Meta didn’t waltz into Louisiana under its own name. The company set up the Hyperion project under the codename “Project Sucre,” operating through a Delaware shell company. That structure allowed it to negotiate with state officials while keeping the corporate brand at arm’s length during the early stages. The deal it secured is eye-catching. Louisiana granted Meta a 20-year exemption on state and local sales taxes for data center equipment valued at roughly $3.3 billion. The state fast-tracked legislation to make it happen, and local utility Entergy committed to building o...