Opinion | Tax the data centers

The Daily Iowan published an opinion piece criticizing the negative public perception of data centers and advocating for stronger regulatory measures and taxation. The author referenced computer scientist Ayse Coskun's TED Talk, which highlighted a town in Virginia experiencing a 20 percent increase in electricity bills due to a nearby data center. The article praised Linn County, Iowa, for implementing comprehensive zoning rules that mandate data centers to submit detailed water usage studies and enter formal water use agreements. The author urged Johnson County and other regions to adopt similar regulations, including increased taxation on data centers for their water consumption. Pamela Mackey Taylor, a lobbyist for the Iowa Sierra Club, claimed a Linn County data center draws up to 15 million gallons of water daily from the Cedar River, a figure the author couldn't publicly confirm but found plausible due to the industry's limited transparency. The piece also cited a bill introduced in Virginia in February, aiming to shift the burden of data center electricity distribution costs from residents to the large-load customers themselves, with the State Corporation Commission determining the public interest. The author concluded by advocating for a nationwide strategy to address the environmental impact of data centers, suggesting that higher taxes on their substantial electricity consumption would incentivize efficiency, reduce overall AI service usage, and ensure companies bear the true costs of their operations.