Data center debate heats up ahead of special session
North Dakota is facing a heated debate ahead of a special legislative session concerning new data center developments. Two bills proposed by Senator Tim Mathern include a moratorium on new A.I. data centers and a ban on non-disclosure agreements for public officials. Amendments also aim to eliminate sales tax exemptions for data center equipment, which critics argue is a costly break for out-of-state corporations.
Ahead of a special legislative session in Bismarck, North Dakota, a significant debate is escalating over proposed bills concerning data center development. Senator Tim Mathern of Fargo has introduced two bills: one proposing a moratorium on new A.I. data centers and another banning non-disclosure agreements (NDAs) for public officials.
Casselton City Councilman Sam Wagner testified in support of the NDA ban, stating that no public official should sign such an agreement. Senator Mathern further explained that the NDA ban aims to ensure a level playing field in negotiations between cities, REC's, and investor-owned utilities regarding transmission lines and other activities, preventing private negotiations from being excluded from government oversight.
Additionally, Senator Mathern is introducing an amendment to remove the sales tax exemption on data center equipment. He highlights the financial impact, noting that these tax breaks, which have grown to an estimated $16 million annually, benefit out-of-state corporations while the state simultaneously debates spending $30 million for a veteran's wing at the Heritage Center. Mathern argues that without this sales tax, property and income taxes for state residents will inevitably rise as data center expansion continues.