'A self-inflicted hit': Washington state just rolled back sales tax exemptions for AI data centers worth hundreds of millions

Data center.

• Washington trims data center tax breaks as pressure mounts nationwide
• Lawmakers rethink incentives as AI infrastructure costs keep rising
• Industry pushback slows efforts to reform data center tax policies

The state of Washington has moved to scale back a long-standing tax incentive tied to data center operations, a decision that could reshape how artificial intelligence infrastructure expands in the region.