Exclusive: Data Center Costs Set to Rise as U.S. States Move to Repeal Tax Breaks

Governors and legislatures in U.S. states that previously welcomed data centers are suddenly moving to rip away sales tax breaks that could raise the price of every gigawatt of AI computing by several billion dollars, potentially adding 7% or more to equipment costs.

In little-noticed moves that sharply accelerated this summer, four states rolled back or paused data center tax incentives, while officials in nine other states are considering repeal measures, according to the National Conference of State Legislatures, an advocacy and research association for state lawmakers, and The Information’s analysis.