Pillen Signs Order Limiting Data Center Incentives
Nebraska Governor Jim Pillen has signed an executive order to temporarily remove state economic development incentives for new large-scale data centers. This action aims to allow the state to develop a long-term strategy for managing the industry's impact on critical electricity and water resources. The order also establishes a Data Center Task Force and directs state agencies to review proposals and recommend balanced policies.
Nebraska Governor Jim Pillen has signed an executive order to temporarily remove state economic development incentives for new large-scale data centers. The move is intended to provide the state with time to develop a comprehensive, long-term strategy for managing the data center industry's impact on electricity and water resources.
The executive order does not halt data center construction but prevents new projects from receiving benefits through the state's Imagine Nebraska Act. Governor Pillen emphasized the importance of protecting Nebraska's low-cost public power system and abundant water supply, citing growing electricity demand as a key concern.
Additionally, the order establishes a Data Center Task Force and mandates state agencies to review future proposals. This task force will recommend policies designed to balance economic development with the preservation of the state's power grid and water resources. Governor Pillen noted that this effort aligns with Nebraska's new behind-the-meter power law, which encourages private investment in electric generation.
State Senator Mike Jacobson publicly supported the Governor's decision, arguing that economic incentive programs should be reserved for projects genuinely in need, suggesting that major data center developers are capable of building without taxpayer-funded support. Senator Jacobson had initially planned to introduce legislation next year to permanently remove data centers from the IMAGINE Act but commended Governor Pillen for taking immediate executive action.