Nebraska Governor Moves to Halt Tax Incentives for Data Centers
In a significant move, Nebraska Governor Jim Pillen is set to sign an executive order on Monday that will temporarily halt tax incentives for data center initiatives across the state. This development follows increased scrutiny and growing concerns over the impact of these centers on Nebraska’s natural resources.
The specifics of the suspension remain unclear, with a Friday news release not detailing whether the order targets only upcoming projects or existing incentives as well. Efforts to reach a spokeswoman for Governor Pillen for further clarification on Friday afternoon were unsuccessful.
Governor Pillen also announced the formation of a new task force. The group’s mandate will be to recommend additional safeguards aimed at protecting the state’s natural resources from the demands of data centers. “Nebraska is appealing because of its available land, low electrical rates, and abundant water, but we’ve also provided them with tax incentives to locate here, which means they are making a lot of money at the same time,” Pillen stated in a news release. “We need to take a look at our process to make sure we’re taking all steps necessary to protect our state’s resources as well as our taxpayers.”
The governor’s announcement coincides with a growing trend among Nebraska counties to impose moratoriums on data center developments. Just this past Wednesday, Logan County became the 12th county in Nebraska to enact such a ban, with several others contemplating similar measures.
