Wisconsin’s $2 Billion Data Center Tax Break

Wisconsin’s 2023 data center equipment sales tax exemption is projected to reduce state sales tax revenue by more than $2 billion over multiple years, largely in connection with large facilities planned or operating in Beaver Dam, Port Washington, and Mount Pleasant.

The exemption was approved by the Republican-controlled Legislature and signed by Gov. Tony Evers, but its cost, eligibility requirements, and effect on investment have become subjects of political and policy debate. Supporters cite economic growth, property tax revenue, and lower costs for cloud services, while critics question whether the public cost and unequal treatment of industries are justified.