A side-by-side comparison of the sales and use tax exemptions that Pennsylvania, Virginia, Ohio, Maryland, and Georgia offer data centers, current as of October 2026.
Interactive version: jphoebus.github.io/state-incentive-comparison
All projects: jphoebus.github.io
Companion project: How states check their tax incentives
For most states, the sales tax exemption on data center equipment is the primary incentive for attracting the industry. Because operators replace servers and other equipment every few years, the cost of these exemptions grows with the industry itself, and several states have seen actual costs far exceed their early projections. In 2026, all five programs in this comparison are under review, each through a different route. Understanding how the programs differ in design helps explain where each state's debate is likely to go next.
- Entry thresholds vary widely. Maryland requires $2 million in investment and five jobs in its Tier 1 areas. Georgia requires $250 million and 25 jobs in its largest counties. Virginia, the largest market, requires $150 million and 50 jobs.
- Costs have outpaced projections. Ohio forecast $136 million for 2025; state-only losses came to about $1.57 billion. Georgia's estimate for fiscal 2026, including local losses, rose from $327 million to about $2.5 billion.
- Formal evaluation is the exception. Virginia and Georgia have independently evaluated their programs. Pennsylvania's exemption falls outside the Act 48 cycle that reviews the Commonwealth's tax credits, and neither Pennsylvania nor Maryland collects data on the actual value of exemptions claimed.
- Every program is in motion. Ohio paused new applications in May 2026. Maryland's governor backed repeal in September 2026. Virginia's legislature is studying the exemption, and bills to end Georgia's program early did not pass. In Pennsylvania, the House and Senate each passed repeal language in June, though neither bill was enacted.
- Pennsylvania's fall session: the Senate has not yet acted on the House-passed repeal (HB 2198).
- Virginia's Joint Subcommittee on Tax Policy reports on the exemption by December 15, 2026.
- Maryland's General Assembly returns in January with repeal on the table.
- Ohio's Joint Data Center Committee will shape whether and how the paused program resumes.
- Georgia's 2027 session is widely expected to revisit the exemption.
Across all five states, a key question is whether the next round of changes focuses on who qualifies, or on what states require in return: reporting, evaluation, and conditions tied to energy and water use.
The full comparison is in data-center-incentives.csv, with one row per state and 20 columns covering legal authority, investment and job requirements, benefit duration, clawback provisions, public reporting, evaluation findings, estimated cost, and 2026 status. Each row lists its sources. Where a detail could not be confirmed, the file says so rather than guessing. This comparison is for policy analysis and is not tax or legal advice.
- What states changed on data centers in 2026
- How states check their tax incentives
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- Who pays for data center power
- Which data center load counts
- Are state rules ready for quantum computing?
I'm Joshua Phoebus. I spent seven and a half years in Pennsylvania state government, including four years as Director of Performance and Transformation in the Office of Governor Tom Wolf, where I led the Commonwealth's performance-based budgeting engagement across twenty-nine executive agencies and guided agencies on compliance with the tax credit reviews required under Act 48.
- LinkedIn: linkedin.com/in/joshuaphoebus
- Website: joshuaphoebusllc.com