Texas lawmakers are reevaluating a tax break for data centers that was created 13 years ago. At the time, the expected loss in tax revenue was relatively small, with a maximum of $14 million anticipated over a 2-year budget cycle. State projections now indicate that the tax deal could result in Texas forgoing a significant amount of revenue.

The estimated loss for the 2028-29 biennium is over $3 billion. Further details on the tax break and its potential impact on the state are available from the Texas Standard.