Nebraska Governor Pillen Halts Data Center Subsidies
Nebraska Governor Jim Pillen signed an executive order stopping state incentives for data centers due to concerns over water and electricity usage. While not a statewide ban, the order ends the practice of allowing data centers to qualify for incentives through the ImagiNE Nebraska Act and establishes a task force for new recommendations. Several Nebraska counties have already enacted or are exploring local moratoriums on data center development.
Nebraska Governor Jim Pillen has signed an executive order to discontinue state incentives for data centers, citing concerns over water and electricity consumption. Governor Pillen emphasized that the decision prioritizes "Our people, our land, and our water," without imposing a full ban on data center development in the state.
The executive order specifically terminates the eligibility of data centers for incentives under the ImagiNE Nebraska Act. Additionally, Governor Pillen is forming a task force charged with developing new recommendations for lawmakers regarding data center policies. State Senator Mike Jacobson of North Platte supported the governor's move, stating that data centers currently have sufficient capital and do not require state incentives.
Jacobson also noted the governor's "agnostic" stance on data centers, advocating for local control over their establishment. He highlighted that while the state is not actively promoting data centers, they are welcome if they adhere to local ordinances set by counties and cities. The senator pointed to the potential for data centers to significantly expand local property tax bases, citing Lincoln County's $6.6 billion tax base and the impact a $3 billion data center could have on reducing property taxes for agricultural landowners and homeowners.
The article also mentions that several Nebraska counties, including Sarpy County, have already imposed or are considering moratoriums on data center construction as they research the electrical and water demands. Governor Pillen underscored the importance of ensuring adequate electrical generation capacity across Nebraska, especially given the state's public power system.