A torrent of states are repealing data center tax exemptions — but it could increase costs by upwards of 7%

An image depicting a graph of increasing oil prices impacting financial markets and economies worldwide.

• Multiple US states are repealing or enacting moratoriums on sales tax exemptions for data centers
• Estimates on lost tax revenue are far below the billions of dollars some states have missed out on
• Ongoing data center constructions may not be subject, but costs are expected to increase for new or planned projects

In a blow to US firms trying to expand AI compute capacity by building more data centers, multiple states are now repealing tax exemptions for equipment costs.