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Tax Foundation · Dec 19, 2025

State Taxation of Data Centers

Tax Brief summary and classification of the original reporting.

Bottom Line

💡 State Taxation of Data Centers. Worth reviewing for potential client impact.

Summary

Data centers face high tax burdens and are particularly substantial contributors to local coffers, but poor tax structure can drive these operations to other locations and deprive local governments of a major revenue stream.

Classification

Category: fyiPriority: importantReason: Contains 'state tax' - significant update

Applies To

state

Affected Groups

State and local tax specialists

Related Topics

Original Source

We aggregate public tax updates and provide AI-assisted summaries. Please read the original reporting for full details.

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