Applaud House Democrats For Targeting Data Center Tax Breaks

A group of House Democrats is proposing new limits on federal tax breaks available to large data centers as communities across the country debate the costs of the rapidly expanding facilities.

Reps. Kristen McDonald Rivet of Michigan and Don Davis of North Carolina introduced legislation that would prevent data centers from taking advantage of certain federal investment incentives, including bonus depreciation and tax benefits associated with Opportunity Zones. Those incentives are broadly available to businesses rather than specifically designed for data centers, but the industry’s enormous infrastructure investments can qualify for substantial tax benefits.

The proposal comes amid growing scrutiny of the resources required to operate data centers, particularly the electricity and water needed to support artificial intelligence and other computing services. 

Add your name to applaud House Democrats for proposing new limits on federal tax breaks for data centers!