Wyden Proposes Data Center Taxes and Public-Land Development Ban
Sen. Ron Wyden is advancing legislation addressing AI-driven worker displacement and releasing a draft tax package targeting data center operators. He also supports banning new data centers on federally owned public lands and raised concerns about their water use, energy demand, financing and tax benefits, citing Meta as an example.
Sen. Ron Wyden of Oregon is proposing federal measures to address the economic effects of artificial intelligence, including expanded unemployment benefits and retraining support for workers displaced by AI. He is also releasing draft legislation that would impose an excise tax on data center operators and remove certain tax advantages, including bonus depreciation, opportunity-zone benefits and research credits.
Wyden criticized Meta’s use of research and development tax credits for AI data centers, citing the company’s rising claims and a related dispute with the Internal Revenue Service. He also introduced legislation that would prohibit the development, sale or transfer of federally owned public lands for new data centers and related infrastructure. Wyden said policymakers must weigh data centers’ impacts on water, energy, financing and local communities.