Abbott recommends sweeping data center regulation, including eliminating sales tax exemption
Gov. Greg Abbott has proposed sweeping regulatory recommendations for data centers in Texas, to be considered by the Legislature in 2027. These recommendations include eliminating sales tax exemptions for data centers. The initiative aims to address the rapid growth of the artificial intelligence industry in the state.
Texas Governor Greg Abbott has unveiled comprehensive regulatory recommendations for data centers, slated for consideration by the state Legislature during its 2027 session. The proposals, released on June 9, are designed to address the significant expansion of artificial intelligence infrastructure within Texas.
A key component of Governor Abbott's recommendations is the elimination of sales tax exemptions currently enjoyed by data centers. This move indicates a proactive approach by the state to manage the environmental and economic impacts of the rapidly growing data center industry across Texas.