States Move to Revoke Data Center Tax Breaks, Raising Costs

WHO:

TechRadar - Multiple states in the U.S. are involved in repealing or modifying sales tax exemptions for data centers.

Techmeme - Four U.S. states have rolled back or paused data center tax incentives.

WHAT:

TechRadar - The repeal or modification of sales tax exemptions could cause the cost of data centers to increase by upwards of 7%.

Techmeme - Nine other states are weighing repeal measures that could potentially add 7% or more to equipment costs.

WHERE:

Techmeme - The actions are taking place across various U.S. states that previously welcomed data centers.

WHY:

Techmeme - Governors and legislatures in these states are moving to eliminate sales tax breaks for data centers.

Multiple states in the U.S. are taking steps to repeal or modify sales tax exemptions for data centers, with four states already rolling back or pausing these tax incentives. This change could lead to an increase in the cost of data centers by upwards of 7%, with nine other states also considering similar measures that might add even more to equipment costs. Governors and legislatures in these states are pushing to eliminate the sales tax breaks that have previously attracted data centers.