‘These new numbers are extremely troubling and I would say they are unsustainable’: Texas faces questions over giving data centers over $1 billion in tax breaks

• Texas has been losing more and more each year due to lack of data center tax
• Previously just a few million, the state could lose $1.3 billion in 2026 alone
• Supporters say the benefits include large investments and other tax revenues

The state of Texas could be set to lose $3.2 billion in sales tax revenue over the next two years because of a longstanding tax exemption in place for data centers — one of the most expensive incentive programs in the state.

But this figure is a general estimate, and growing data center construction could actually mean even more treasure is lost.