Nebraska Gov. Jim Pillen signs order ending taxpayer subsidies for large data centers

Nebraska Governor Jim Pillen issued an executive order on Monday to cease taxpayer subsidies for large data centers, arguing the state lacks adequate electricity to sustain the industry's rapid expansion without negatively impacting consumers. Pillen stated that upon taking office, he discovered Nebraska was already utilizing 11.5% of its electricity, necessitating a pause in subsidized data center growth. He emphasized that future power growth should be privately funded, not at the expense of consumers.

The executive order specifically blocks the approval of new large-scale data applications under the existing Imagine Nebraska Act. It also mandates collaboration among the Departments of Economic Development, Revenue, and Water, Energy and Environment to review proposals and establishes a data center task force to report to the Legislature. Gov. Pillen estimated this action would save approximately $1 billion to $2 billion for 2 million Nebraska consumers by protecting electric rates.

Senator Mike Jacobson, who joined Gov. Pillen for the announcement, clarified that data centers are still welcome in Nebraska, but they must now work directly with political subdivisions and state agencies without relying on state-funded incentives. He explained that the previous incentive program involved rebates on taxes paid by companies, not withdrawals from the general fund. Pillen also commended the Lincoln County commissioners and planning commission for their efforts in developing thoughtful standards for data centers.