Nebraska data centers have received $519M in property tax exemptions since 2021
Nebraska Governor Pillen has issued an executive order to end "irresponsible" state business tax incentives for data centers, citing concerns over land and water. This decision follows a State Auditor's report alleging $1.2 billion in lost revenue from such incentives. The order also establishes a data center task force to provide recommendations to the legislature, while local governments continue to address data center development through moratoriums and recall votes.
Nebraska Governor Pillen issued an executive order aimed at ceasing what he termed "irresponsible" state incentives for data center development. He explicitly stated that this order is not a moratorium on data centers but rather a measure to ensure the best interests of Nebraskans, their land, and water.
The order has two main components: it blocks data centers from receiving business tax incentives, specifically property and sales tax rebates under the Nebraska Imagine Act, and it establishes a data center task force. This task force is charged with providing recommendations to the state legislature regarding future data center policy. The Governor's action follows an earlier report from the State Auditor, which alleged that these incentives had cost the state over $1.2 billion in lost revenue.
While the state is adjusting its approach to incentives, local governments across Nebraska, including areas from North Platte to Nebraska City, are independently addressing data center development. These local efforts include implementing moratoriums and conducting recall votes, driven by ongoing community concern.