Tech giants are estimated to have spent almost $400 billion in capital expenditures this year, mostly to build data centers for artificial intelligence. Just one of these massive facilities can have a price tag in the billions of dollars.

And many states want in on that spending spree. Thirty-seven states have some sort of incentive program to attract data centers with the hope of bringing a boost to their local economies. They're giving away hundreds of millions in tax exemptions, according to the National Conference of State Legislatures.

Many of these policies pre-dated the AI boom but the current data center frenzy has intensified the competition and concerns about whether states will see a payoff.

Marketplace’s Meghan McCarty Carino spoke with Nicholas Miller, policy associate at NCSL, to learn more.

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Policy Snapshot: Data Center Incentives - from the National Conference of State Legislatures.