Idaho’s data center debate raises questions about lobbying and tax breaks
The Sandpoint Reader discusses Idaho's 2020 data center sales tax exemption, which the author, Lauren Necochea, opposed due to concerns about economic benefits and resource usage. This policy has led to large data center developments, including Meta's facility near Kuna and a proposed 620-acre project currently challenged in the Idaho Supreme Court, as well as a data center blocked by public opposition in Pocatello. Necochea criticizes lawmakers for prioritizing lobbyists' interests over constituents.
Lauren Necochea, chair of the Idaho Democratic Party and a former legislator, critiques Idaho's 2020 sales tax exemption for data centers in an article for the Sandpoint Reader, arguing it resulted from undue lobbyist influence rather than thorough legislative study. Necochea recounted her opposition to the bill during her first legislative session, citing an industry expert who described data centers as "supply closets" with few permanent employees relative to their land, water, and electricity demands, making a tax advantage for them unwarranted. Despite her "no" vote, the bill passed and was signed into law by Governor Brad Little.
The tax exemption has since facilitated large-scale data center developments, including a major Meta facility built outside Kuna and another 620-acre project nearby that received approval. The latter project is now facing a challenge from neighboring farmers before the Idaho Supreme Court, highlighting ongoing legal ramifications. Additionally, strong public opposition in Pocatello led to the temporary blocking of another proposed data center.
Necochea expressed concern that efforts to restrict these tax breaks have failed, and warns that lawmakers' reliance on corporate and special interest campaign contributions undermines accountability to Idaho citizens. She urged voters to consider whether their leaders serve deep-pocketed interests or the people of Idaho.