Texas officials review data center tax incentives as facilities draw scrutiny throughout the state
Officials in Texas are reviewing the state's data center tax incentives amidst growing public scrutiny. Protesters gathered at the state Capitol, calling for action from lawmakers and the governor to address the data center boom. Industry representatives are defending the tax exemptions, which are projected to reach $3.3 billion by 2028.
People from across Texas gathered on the steps of the state Capitol to protest the proliferation of data centers, describing the issue as a "grave threat" and a "spiritual war." Among the calls for action, Texas Agriculture Commissioner Sid Miller urged the governor to call a special session to address data center development.
Inside the Capitol, the Senate Finance Committee held a review of the state's data center tax incentives. Industry representatives defended these exemptions, which have seen a significant increase from $14 million in 2014 to a projected $3.3 billion by 2028. Lawmakers spent several hours questioning the rapid growth of data centers in Texas and the impact of these incentives.
During the committee hearing, a Colorado resident highlighted that their state does not offer a sales tax exemption for data centers, which has limited their development there. Grassroots organizations are closely monitoring the situation and continue to pressure the governor and state legislators to take decisive action against the data center boom.