Four US states rolled back or paused data center tax incentives, and nine others are weighing repeal measures, potentially adding 7% or more to equipment costs (Ann Davis Vaughan/The Information)

Four US states have already rolled back or paused data center tax incentives, with nine others considering repeal measures, which could increase equipment costs by 7% or more and significantly impact infrastructure investment decisions. This shift represents a fundamental change in state competitiveness for data center projects, forcing IT organizations to reassess their infrastructure deployment strategies and budgeting models across multiple jurisdictions. For technology leaders, this signals the need to engage in proactive state-level advocacy while simultaneously diversifying geographic footprints to mitigate exposure to unfavorable policy changes.