Pillen to sign order suspending tax incentives for data center projects in Nebraska
Nebraska Gov. Jim Pillen plans to sign an executive order suspending tax incentives for data center projects statewide and creating a task force to propose safeguards for natural resources. This action follows multiple Nebraska counties, including Logan County, enacting moratoriums on data center development.
Nebraska Governor Jim Pillen announced plans to sign an executive order on Monday that will suspend tax incentives for data center projects across the state. Details regarding whether the suspension applies only to future projects or also impacts existing incentives were not immediately specified in a Friday news release, and a spokeswoman for Pillen was unavailable for comment.
In addition to suspending incentives, the executive order will establish a task force. This group will be charged with proposing additional safeguards aimed at protecting Nebraska's natural resources from data center usage. Governor Pillen stated that while Nebraska's available land, low electrical rates, and abundant water are attractive to data centers, the state must review its processes to ensure the protection of both its resources and taxpayers, especially given the significant profits data centers accrue from tax incentives.
This statewide action by the governor comes as a growing number of Nebraska counties are moving to implement moratoriums on data center development. Logan County recently became the twelfth county in the state to pass such a moratorium, with several other counties currently considering similar measures.