Texas Data Center Tax Breaks Top $1 Billion a Year

Texas Data Center Tax Breaks Top $1 Billion a Year

News ClipGoverning·TX·4/9/2026

Texas lawmakers are currently debating whether to reduce or eliminate state sales tax breaks for data centers. These incentives are rapidly growing and are estimated to cost the state over $1 billion annually in lost sales tax revenue.

government
Gov: Texas Legislature
Lawmakers are weighing whether to scale back or repeal a fast-growing incentive now costing billions in lost sales tax revenue.