Washington Weighs Data Center Tax Change
Coverage from Washington State Standard and others

Washington Senate Bill 6231 would remove a tax exemption used by data centers to upgrade servers and related energy infrastructure, and Gov.
Bob Ferguson must decide whether to sign or veto it. Supporters of retaining the exemption argue that the change could discourage more efficient equipment upgrades, affect investment and employment, and create uncertainty for commitments made under the existing program. The debate links data center taxation with clean-energy goals, grid affordability, and the sector’s reported economic contribution.
The story is largely unchanged, but the framing has tightened: the bill is now described as pending the governor’s signature or veto, and the policy debate is more explicitly tied to grid affordability and clean-energy objectives. The current version also softens some language about retroactive legal uncertainty into a broader concern about uncertainty for existing commitments.
The story has moved from a pending legislative debate to enacted legislative action: Senate Bill 6231 has now passed both chambers and is awaiting Governor Ferguson’s decision. The current framing also adds concrete scale, citing job and tax-revenue estimates to sharpen the stakes of the exemption change.
- Senate Bill 6231 passed both chambers of the Washington Legislature.
- Gov. Bob Ferguson is now deciding whether to sign or veto the bill.
- PwC estimates Washington data centers support more than 47,000 jobs.
- The sector generated $1.8 billion in state and local tax revenue in 2023.
The story now emphasizes broader policy tradeoffs: besides modernization and grid effects, the debate is more explicitly about jobs, tax revenue, and legal certainty for already-made investments. PwC is also newly cited, strengthening the economic case around sector employment.
Washington lawmakers are weighing a tax change that would remove a data center upgrade exemption, raising questions about energy-efficiency investment, grid goals, and the stability of existing business commitments.
