Data center tax breaks are on the chopping block in some states

By: Madyson Fitzgerald

Outlets: Stateline

Published: February 24, 2026

Words: 1,874

Last Updated: 6 days, 13 hours ago

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After years of states pushing legislation to accelerate the development of data centers and the electric grid to support them, some legislators want to limit or repeal state and local incentives that paved their way.

President Donald Trump also has changed his tone. Last year he issued an executive order and other federal initiatives meant to support accelerated data center development. Then last month, he cited rising electricity bills in saying technology companies …

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