Pillen signs order stopping subsidies for data centers in Nebraska

Nebraska Governor Jim Pillen has signed an executive order halting state incentives for data center developments across the state, a move he described as essential for protecting "our people, our land, and our water." The Governor emphasized that while this is not a ban on data centers, it will suspend the practice of allowing these facilities to apply for state-level financial incentives, specifically through the ImagiNE Nebraska Act. The decision comes amidst growing concerns regarding data centers' significant water and electricity consumption, issues that have led several Nebraska counties to explore or enact moratoriums on new data center construction.

State Senator Mike Jacobson of North Platte publicly supported the Governor's action, deeming it a prudent step. Jacobson argued that data centers currently possess sufficient financial resources to locate in Nebraska without state subsidies, and no strong competitive pressures necessitate incentives. Both Governor Pillen and Senator Jacobson expressed an "agnostic" stance on data centers, indicating that while they are not actively promoting development, facilities are welcome if they adhere to local ordinances set by counties and cities.

In conjunction with the executive order, Governor Pillen is establishing a task force charged with developing new recommendations for lawmakers concerning data center policies. This initiative also underscores the importance of ensuring adequate electrical generation capacity within Nebraska, particularly given the state's unique publicly-owned power system. While the executive order addresses statewide incentives, local entities like Sarpy County and Lincoln County (home to North Platte) continue to grapple with the local impacts, including opportunities for property tax base expansion.