Sales tax exemption
A data center sales tax exemption waives or reduces state and sometimes local sales and use tax on qualifying purchases, such as servers, network gear and electrical and cooling equipment. Because equipment is refreshed often, this incentive can matter more over a project’s life than property tax relief. Eligibility thresholds for investment, jobs and wages vary by state and can change.
The full guide · Zoning, permitting & communityData Center Tax Incentives: What to Look ForHow data center tax incentives work: sales and use tax exemptions, property tax abatements, PILOT agreements, typical qualifying criteria and what to check.Where Sales tax exemption comes up
- Decisions and trade-offsTax Incentives vs. Power Costs: Which Matters More for a Data Center Site?
- Zoning, permitting & communityState Data Center Legislation: 2025–2026 Trends in Tariffs, Incentives, Water and Moratoriums
- Site selection by stateData Center Site Selection in Idaho
- Site selection by stateData Center Site Selection in Virginia: Power, GS-5, Zoning and Tax Rules
- Site selection by stateData Center Site Selection in Ohio: AEP Ohio’s Tariff, PJM Costs and the Tax Pause
- Site selection by stateData Center Site Selection in Indiana
- Site selection by stateData Center Site Selection in Washington State
- Zoning, permitting & communityData Center Sales Tax Exemptions by State: Thresholds, Pauses and Repeals (2026)