Texas Built Its Tax Break for Yesterday's Data Center Market

The Texas data center tax exemption that was supposed to cost $180 million by 2027-2028 is now projected to exceed $3 billion in that same window, and Senate Finance Chair Joan Huffman is moving to repeal it. Every active Texas pro forma built on that exemption is now a liability, and the developers stress-testing their numbers today are the ones who will still be building in 2027.