Legislators in at least 28 states this year introduced bills that would roll back tax incentives for the energy-hungry facilities. Data centers have historically attracted investment due to generous tax breaks, but rising energy costs are prompting a reevaluation of their environmental and economic impact. The 28 states that have filed legislation represent a significant portion of the United States, covering a wide geographic range from the Northeast to the West Coast. The bills aim to reduce the financial advantages that have encouraged rapid expansion of data center infrastructure. Industry analysts anticipate that the shift could slow new construction projects and encourage operators to invest in energy efficiency measures. Companies may look to offset costs through renewable energy procurement or on-site generation. As policymakers weigh the balance between digital growth and energy sustainability, the sector will need to adapt to a more stringent regulatory environment.