STATE CAPITAL HIGHLIGHTS
News ClipThe Canadian Record |·TX·4/13/2026
Texas is facing a projected loss of $3.2 billion in sales tax revenue over the next two years due to an exemption for the data center industry. Lawmakers are planning to consider proposals in the upcoming legislative session to either limit or entirely eliminate this tax break, which was initially approved in 2014.
government
Gov: Texas State House, Texas Senate Committee on Finance, State Sen. Joan Huffman
Texas faces a significant financial challenge as the state's data center industry is set to receive billions in tax breaks, resulting in a projected loss of $3.2 billion in sales tax revenue over the next two years. State Senator Joan Huffman, who chairs the Senate Committee on Finance, expressed "extreme concern" over these numbers, deeming them "unsustainable." She announced plans to introduce legislation in the upcoming January legislative session to either repeal or significantly revise the exemption.
The tax break was originally approved by lawmakers in 2014, when the data center sector in Texas was considerably smaller. If no changes are made to the current policy, these exemptions could escalate to $1.75 billion annually by 2030. Texas currently hosts over 300 active data centers, with an additional 100 projects either planned or under development.