‘These new numbers are extremely concerning and I will say they are unsustainable’: Texas faces questions over giving data centers more than $1 billion in tax breaks.

• Texas is losing more and more each year due to no data center tax
• The state could lose $1.3 billion in 2026 alone, when it was only a few million.
• Supporters say benefits include major investments and other tax revenue

The state of Texas could lose $3.2 billion in sales tax revenue over the next two years due to a long-standing tax exemption in place for data centers — one of the state’s costliest incentive programs.

This is a general estimate, however, and the increasing construction of data centers could actually result in an even greater tax loss.