A torrent of states are repealing data center tax exemptions — but it could increase costs by upwards of 7%
Pro A torrent of states are repealing data center tax exemptions — but it could increase costs by upwards of 7% News By Benedict Collins Published 3 August 2026 New data center projects could be hit by a big increase in costs When you purchase through links on our site, we may earn an affiliate commission. Illinois’ program has been paused indefinitely, and Arizona has enacted a 3-year moratorium.A further nine states are also considering halting their own exemptions, and a further 28 states have introduced bills to limit the effects of their own exemptions. These sales taxes will immediately increase the costs of new data center projects, but some projects already under way could be subject to indefinite exemptions.Are data center costs already unsustainable?The costs of data center construction have already been rising due to the sudden expansion in capacity.
- ▪Pro A torrent of states are repealing data center tax exemptions — but it could increase costs by upwards of 7% News By Benedict Collins Published 3 August 2026 New data center projects could be hit by a big increase in costs When you purch
- ▪Illinois’ program has been paused indefinitely, and Arizona has enacted a 3-year moratorium.A further nine states are also considering halting their own exemptions, and a further 28 states have introduced bills to limit the effects of their
- ▪These sales taxes will immediately increase the costs of new data center projects, but some projects already under way could be subject to indefinite exemptions.Are data center costs already unsustainable?The costs of data center constructi
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| Canonical URL | https://www.techradar.com/pro/torrent-of-states-repeal-data-center-tax-exemptions-but-it-could-increase-costs-by-upwards-of-7-percent |
| Publication time | Mon, 03 Aug 2026 17:10:00 +0000 |
| Retrieval time | 2026-08-03T17:15:41.479Z |
| Last seen | 2026-08-03T17:15:41.479Z |
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Pro A torrent of states are repealing data center tax exemptions — but it could increase costs by upwards of 7% News By Benedict Collins Published 3 August 2026 New data center projects could be hit by a big increase in costs When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. (Image credit: Shutterstock) Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter Multiple US states are repealing or enacting moratoriums on sales tax exemptions for data centersEstimates on lost tax revenue are far below the billions of dollars some states have missed out onOngoing data center constructions may not be…
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