Texas Senate Bill 293, filed by Finance Committee chair Joan Huffman with a majority of senators as authors, would repeal the state's sales tax exemptions on data center equipment and electricity (about $3.3 billion in forgone revenue in the coming biennium, per the Comptroller) and end existing exemptions on its effective date. CoreWeave reported a revenue backlog of about $132.5 billion and more than 4.6 GW of contracted power, with its CEO calling tougher scrutiny a pacing issue. BloombergNEF now tracks 181 GW of gas-fired generation proposed alongside data centers, more than 90% of it in the U.S., as grid connections lag.

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Sources:

• https://senate.texas.gov/members/d17/press/en/p20261109a.pdf
• https://capitol.texas.gov/tlodocs/90R/billtext/html/SB00293I.HTM
• https://www.usatoday.com/story/news/state/texas/2026/11/11/texas-republican-democrats-look-at-cutting-data-center-tax-breaks/92724455007/
• https://www.tpr.org/economy-and-labor/2026-07-28/texas-lawmakers-question-billions-in-tax-breaks-for-data-centers
• https://investors.coreweave.com/news/news-details/2026/CoreWeave-Reports-Strong-Third-Quarter-2026-Results/default.aspx
• https://www.investing.com/news/economy-news/coreweave-beats-quarterly-revenue-estimates-as-ai-demand-defies-growing-doubts-5016823
• https://about.bnef.com/insights/data-centers/data-center-power-demand-is-set-to-surge-raising-new-climate-challenges-bloombergnef/
• https://www.theguardian.com/world/2026/nov/11/ai-datacentres-on-site-gas-fired-power-stations