Governors and state legislatures across the United States, who once competed to attract data centers, are now eliminating sales tax exemption policies. This shift could increase the cost of AI computing power projects by billions of dollars per gigawatt, with equipment purchase costs rising by over 7% at most. According to analyses by the National Conference of State Legislatures (a research and industry organization for state legislators) and The Information, the policy shift accelerated notably this summer but has not received widespread attention. Currently, four states have reduced or suspended tax incentive policies for data centers, while legislators in nine other states are reviewing bills to abolish related incentives.