Nebraska Senator Mike Jacobson Reports on Data Center Discussions

Senator Mike Jacobson, reporting from the Nebraska Legislature, discussed the extensive conversations surrounding data center development. He noted significant local opposition, with some advocating for a complete ban on new data center construction. Despite these calls, Senator Jacobson clarified that such decisions would ultimately rest with local planning commissions and county boards.

The Senator presented facts to address common questions, particularly regarding property taxes. He explained that a larger property tax base, bolstered by substantial developments like a $1.5 billion data center, could reduce individual property tax bills by lowering the overall levy rate. He cited Lincoln County, with its $6.63 billion tax base, as an example. Additionally, data centers contribute to sales tax revenue from building materials, equipment, electricity, and local option sales taxes if located within city limits.

Jacobson provided examples of economic benefits, referencing North Platte's growth in local option sales tax from retail stores, which has allowed for property tax reductions. He also highlighted Kearney's experience with a cryptocurrency miner, which consumes power equivalent to the entire city but generates millions in sales taxes, significantly reducing property tax burdens. While acknowledging the economic upsides, Senator Jacobson also addressed concerns such as noise, power consumption, and water usage, noting that impacts vary greatly between projects. He stressed that all large developments, including data centers, require approvals from state and local entities, including natural resources districts, the Nebraska Department of Water, Energy, and Environment, the Power Review Board, and local public power districts for zoning and conditional use. The Senator expressed confidence in local officials to make informed decisions and encouraged public participation based on facts rather than broad opposition.