Republicans urged to support data center development amidst opposition, tax policy debates
This opinion piece argues that Republicans are at risk of undermining their pro-business stance by wavering on supporting data center development. It highlights ongoing debates in Missouri, Kansas, and at the federal level regarding tax policies that could hinder investment in the digital infrastructure sector. The author urges Republicans to defend data center investment against growing opposition and proposed tax changes.
The article is an opinion piece criticizing Republicans for potentially undermining their pro-business reputation by wavering on supporting data center development amidst increasing opposition. It highlights concerns over state-level tax policies in Missouri and Kansas, where politicians are considering eliminating sales tax exemptions for data center equipment, which the author argues would negatively impact investment. Federally, the article points to proposals from Senate Democrats to block data center developers from receiving standard business tax incentives, such as full expensing and opportunity zone benefits, and to levy a "sin tax" on the industry.
Economist Jason Furman is cited, estimating that data center investments contributed 92% of GDP growth in early 2025. PwC also projects massive U.S. investment in digital infrastructure, reaching $2.4 trillion by 2050, with an additional $7.7 trillion for supporting grid infrastructure. The author, Debbie Jennings, a senior policy manager at the National Taxpayers Union Foundation, asserts that these proposed tax changes would lead to job losses in construction and union sectors, and higher prices for consumers of digital services. She urges Republicans to stand firm on their traditional principles of promoting economic development and opposing burdensome taxes, especially at a time when digital infrastructure represents a "once-in-a-generation rewiring of the modern economy."