States that once offered billions of dollars in tax breaks to data centers are now tearing up those agreements as public opposition grows. According to Sina Finance, lawmakers and governors in more than a dozen U.S. states have paused or canceled sales tax exemptions for data centers, and some are seeking to renegotiate long-term deals with Amazon, Meta, and Google.
Ohio Governor Mike DeWine halted new applications for the state's sales tax exemption in May after the policy's scale drew voter backlash. Democratic state Representative Tristan Rader has introduced a bill to make developers pay more for electricity and infrastructure costs, while several other states, including Illinois, New Jersey, and Washington, have also moved to curb incentives.
The article said 2025 public data showed data center sales tax exemptions reached $1.94 billion in Virginia, $1.9 billion in Georgia, $1.57 billion in Ohio, and $1.02 billion in Texas. It added that more than 35 states still offer sales tax exemptions or similar incentives for data center developers.