Backlash Spurs Review of Data Center Tax Breaks: States of Play

March 30, 2026, 6:31 PM UTC
A data center in Ashburn, Va.
A data center in Ashburn, Va.
Photographer: Nathan Howard/Bloomberg via Getty Images

State lawmakers from both parties have increasingly targeted sales tax exemptions for data centers as the sprawling facilities have ruffled local residents, Daniel Moore reports.

  • More than a  dozen statesare curtailing or rewriting laws that let data centers avoid sales taxes on materials, servers, and other equipment. Opponents of the exemptions point to millions of dollars in foregone revenue and indications that substantial data center construction activity would take place even without tax breaks.
  • At a recent Coweta County, Ga. commissioners’ meeting, residents complained that a proposed $17 billion data center campus would increase noise, consume ...

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