Texas Gives Data Centers $1B+ In Tax Breaks Every Year

Texas lawmakers are starting to rethink a tax exemption for the state’s booming data center industry.

The legislature approved the tax break more than ten years ago, when the annual exemption added up to about to five million dollars. The state comptroller’s office says it will likely top more than three billion dollars over the next two years.

Lawmakers meet next January for the 2027 legislative session, and they say they may reduce the tax break or eliminate it entirely.