Data centers, state by state

What has each state decided about data centers?

Back to the story: Data centers beyond DeKalb. Checked October 29, 2026.

Thirty six states give data centers a break on sales and use tax, and only eleven name the companies that receive it (reporting, Good Jobs First, November 2025). A growing number of states have also told their utility commissions to make the largest new customers sign long contracts and pay a minimum bill whether or not they use the power, so that households are not left holding the cost of plants built for a data center that leaves. Below are the actions we could confirm in 13 states. It is not every state.

Georgia

What was decided: New Georgia Power customers over 100 megawatts can be billed for generation and transmission built for them, held to contracts of up to 15 years with minimum bills, and have their contracts reviewed by the commission. In December 2025 the commission approved about 10,000 megawatts of new capacity, about 80 percent tied to data centers.
Who decided, and when: Public Service Commission, Jan. 23, 2025 and Dec. 19, 2025
Tax break: Sales tax exemption on data center equipment stays through 2031 after the Governor vetoed a pause in 2024; the 2026 legislature left it in place.
Sources: record, PSC; reporting, CBS News Atlanta, WABE, AJC

Texas

What was decided: Senate Bill 6: the utility commission sets connection standards for loads of 75 megawatts or more, with study fees of at least $100,000, disclosure of backup generators, and the power to have the grid operator curtail new large loads in an emergency. Pairing a data center with an existing power plant needs commission review.
Who decided, and when: Legislature, 2025; Public Utility Commission rules follow
Tax break: Sales tax exemption cost about $1 billion in fiscal 2025.
Sources: record, Senate bill analysis; reporting, Good Jobs First

Virginia

What was decided: New rate class for customers over 25 megawatts: 14 year contracts and minimum payments of 85 percent of transmission and distribution demand and 60 percent of generation demand. In August 2026 the commission ordered utilities to draft tariffs making data centers pay the full cost of grid projects that serve only them.
Who decided, and when: State Corporation Commission, Nov. 25, 2025 and Aug. 5, 2026
Tax break: Sales and use tax exemption; Good Jobs First puts the yearly amount near $1 billion.
Sources: reporting, Virginia Mercury, Loudoun Now, WSET, Good Jobs First

Ohio

What was decided: AEP Ohio data center customers over 25 megawatts pay for at least 85 percent of the capacity they reserve, on contracts of up to 12 years with exit fees.
Who decided, and when: Public Utilities Commission, July 9, 2025
Tax break: Not reviewed here.
Sources: reporting, POWER

Michigan

What was decided: Consumers Energy customers of 100 megawatts or more: 15 year contracts, minimum bill of 80 percent of contracted capacity, exit fees, and a separate case for each customer showing others are not subsidizing it.
Who decided, and when: Public Service Commission, Nov. 6, 2025 (Case U-21859)
Tax break: Senate Bill 237, signed Dec. 31, 2024: sales and use tax exemption for investments of $250 million or more, through 2050.
Sources: record, MPSC; reporting, DCD

Missouri

What was decided: Senate Bill 4 requires rates that reflect large customers' costs and protects households from unjust costs. Approved tariffs: 12 year contracts, minimum demand charge of 80 percent, collateral and exit fees.
Who decided, and when: Legislature, 2025; Public Service Commission (Ameren and Evergy approved)
Tax break: Not reviewed here.
Sources: record, Missouri PSC

Minnesota

What was decided: Data centers over 100 megawatts pay an annual fee of $2 million to $5 million depending on demand; extra state review of water use over 100 million gallons a year; the utility commission must create a very large customer class by Dec. 15, 2026 and assign its costs to it.
Who decided, and when: Legislature, signed June 14, 2025 (Laws 2025, 1st Special Session, Chapter 12)
Tax break: Equipment exemption extended to 35 years, tied to prevailing wage and a green building certification.
Sources: record, Minnesota Revisor

Oregon

What was decided: POWER Act (HB 3546): data centers of 20 megawatts or more get their own rate class, costs assigned directly to them, contracts of 10 years or longer. The commission approved Portland General Electric's schedules July 10, 2026.
Who decided, and when: Legislature, 2025; Public Utility Commission
Tax break: Not reviewed here.
Sources: record, Oregon PUC report

Maryland

What was decided: Governor's order of Sept. 23, 2026: data centers over 25 megawatts seeking state permits or incentives get a public review rated aligned, conditionally aligned or not aligned, with a monthly public dashboard. A 2026 energy law requires data centers to pay for their own grid upgrades.
Who decided, and when: Governor; General Assembly, 2026
Tax break: 2020 equipment exemption; the Governor plans to seek repeal in 2027.
Sources: reporting, The Daily Record

Louisiana

What was decided: Approved three Entergy gas plants and new transmission for Meta's 2.3 gigawatt data center in Richland Parish; Meta pays plant costs for 15 years. Commissioner Davante Lewis voted no.
Who decided, and when: Public Service Commission, August 2025, 4 to 1
Tax break: Not reviewed here.
Sources: reporting, WWNO

Indiana

What was decided: Approved an Indiana Michigan Power settlement requiring large data center customers to underwrite the grid upgrades built for them.
Who decided, and when: Utility Regulatory Commission, 2025
Tax break: Not reviewed here.
Sources: reporting, Journal Gazette

Alabama

What was decided: No utility rule found. Lowndes County granted Project Red Clay 20 years of tax breaks worth more than $1.1 billion.
Who decided, and when: Lowndes County Commission, Oct. 13, 2026, 3 to 2
Tax break: State law allows data centers that qualify to receive tax abatements for up to 30 years; Word In Black reports a law taking effect in 2027 lowers that to 20.
Sources: reporting, Inside Climate News, Word In Black, GovTech

Mississippi

What was decided: The Department of Environmental Quality let xAI run 27 turbines in Southaven without an air permit as temporary units and issued permits for 41 permanent ones; both are being challenged.
Who decided, and when: Department of Environmental Quality
Tax break: Not reviewed here.
Sources: reporting, Mississippi Today

Back to the story: Data centers beyond DeKalb ›

How we counted, and where every number comes from

How facts are labelled: Record means an official government record or filing. Reporting means a news report; the outlet is named in the sentence. Black press reporting is credited by name. Population figures come from SourceLine's own census data (U.S. Census Bureau, American Community Survey 2020 to 2024, five year estimates, Black alone; source S03), kept separate from voter counts. Sentences marked as SourceLine's reading are interpretation, not fact.

Checked October 29, 2026. Found an error? Write to info@mysourceline.com.