Nebraska governor signs executive order halting tax incentives for data center developers

Nebraska Governor Jim Pillen signed an executive order on Monday, halting state tax incentives for data center developers. This decision is a response to an ongoing statewide debate regarding the construction of data centers across Nebraska.

The executive order aims to stop the provision of tax credits to developers constructing data centers, which previously stemmed from the ImagiNE Nebraska Act. Governor Pillen expressed his view that the state has been overly generous with incentives, stating, "We've done way, way, way too much share, and we've been giving it away. In my view, that's a mistake if we don't take action." He believes that even without these specific tax credits, data center developers will still be motivated to build in Nebraska due to other contributing factors.

The action follows recent local measures, with the Cass County Planning Commission previously calling for a pause on data center developments and moratoriums having been enacted in Saunders and Seward counties. However, Governor Pillen clarified that he is not calling for a moratorium himself but supports changes to the ImagiNE Nebraska Act. He also announced that the Department of Environment and Energy will establish new rules for data centers to ensure the protection of the state's land and natural resources, including water.

This executive order comes a month after Governor Pillen signed a separate bill allowing companies to construct power plants for their own use, a move that could potentially support the energy demands of large-scale computing centers. Jeremy Fredricks reported on this development from Lincoln.