Texas is giving data centers more than $1 billion in tax breaks each year

Based on the article, here are the key points about Texas' sales tax exemption for data centers:

1. The exemption was originally created in 2013 by former state Rep. Harvey Hilderbran.

2. To qualify, data center projects must:

• Be larger than 100,000 sq ft
• Create at least 20 jobs paying 120% of median salary
• Invest $200 million over 5 years

1. For centers >250,000 sq ft:

• Must create 40 qualifying jobs
• Invest $500 million
• Reserve 20 MW of transmission capacity

1. The exemption lasts up to 15-20 years depending on investment levels.

2. In recent years, the value has grown rapidly due to AI boom:

• Now estimated at over $3 billion annually
• Expected to reach $7 billion by 2030

1. Some lawmakers are calling for a review of the program given its rapid growth and impacts.

2. The Texas Legislature will hold hearings on data center incentives this year as part of debate over tax policy.

3. Industry advocates argue it's needed

Read the full article at Grist

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