Alabama gives an AI data center no automatic tax exemption. What it gives instead is a discretionary local abatement. A city, county, or public industrial authority may abate state and local noneducational sales and property taxes for a data processing center. The center must create at least 20 new jobs paying an average of 40,000 dollars a year including benefits. On the largest investments the term can reach 30 years. Ala. Code 40-9B-3 and 40-9B-4, as amended by HB399 Alabama Department of Revenue tax incentives summary The 2026 session narrowed all of that. HB399, now Act 2026-573, was approved by Governor Ivey on April 16, 2026 and takes effect June 1, 2026. It caps new abatements at 20 years starting in 2027 unless the operator signs a binding community investment agreement. SB270, now Act 2026-610, sets up Public Service Commission review so that a very large AI data center covers its own incremental power costs, starting October 1, 2026. SB270 enrolled text
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Data processing center sales and use tax abatement | The abatement covers state and local noneducational construction related transaction taxes on every capitalized purchase for a data processing center. That reaches 1) computers, 2) licensed software, 3) networking and storage gear, 4) cooling systems and cooling towers, 5) power infrastructure for transformation and distribution of electricity, 6) business owned substations, 7) backup power generation, 8) battery systems, and 9) later equipment refresh. Ala. Code 40-9B-4(c)(1), as amended by Act 2026-573 The unusual part is timing. For a data processing center the abatement runs for the whole exemption period instead of stopping when construction ends. Refresh purchases years later stay abated. The term is 10 years where aggregate capital investment stays at or below 200 million dollars. For an abatement granted before January 1, 2027 the term is 20 years above 200 million dollars. It reaches 30 years where investment tops 200 million dollars within 10 years and 400 million dollars within 20 years. For an abatement granted on or after January 1, 2027 the cap is 20 years above 200 million dollars. Reaching 30 years takes a binding community investment agreement. Ala. Code 40-9B-3(a)(12) and 40-9B-4(c), as amended by Act 2026-573 Local sales taxes levied for education or for capital improvements for education can never be abated. Alabama Department of Revenue tax incentives summary | The establishment has to locate at least 20 new jobs with average annual total compensation, benefits included, of at least 40,000 dollars. Investment above 200 million dollars within 10 years of commencement is what buys a term longer than 10 years. The statute counts capital investment by the lessor and by any lessee of a colocation center. A colocation landlord and its tenants can pool investment to clear the thresholds. Ala. Code 40-9B-3(a)(12) Abatements are discretionary. The granting body is the city, county, or public industrial authority. Ala. Code 40-9B-5 Take an abatement granted on or after January 1, 2027 to a center with total peak demand of 100 megawatts or greater. The state share of the abatement stops at the placed in service date for 1) building materials, 2) building fixtures, 3) structural components, 4) real property improvements, 5) power infrastructure, 6) backup power generation, and 7) battery systems. Computers, servers, licensed software, networking and storage equipment, cooling, and other operating equipment stay abatable for the full term. Ala. Code 40-9B-4(c)(2), as amended by Act 2026-573 Act 2026-573 DatacenterDynamics report on HB399 The Governor may abate the state construction related transaction taxes for the full exemption period for a center of 100 megawatts or greater sitting in a targeted county. Ala. Code 40-9B-4(c)(3), as amended by Act 2026-573 Ala. Code 40-18-376.1 The full definition of a data processing center sits at Ala. Code 40-9B-3(a)(4). It covers hosting, storage, backup, retrieval, and distribution of data whether or not the site does other things too. | Active. New applications are allowed until July 31, 2032, after HB399 pushed the sunset out from July 31, 2028. Ala. Code 40-9B-4.1, as amended by Act 2026-573 Act 2026-573 |
| Data processing center property tax abatement | The abatement covers state and local noneducational ad valorem taxes on all the real and personal property making up a data processing center that can be capitalized for federal income tax purposes. The property can be acquired at any point during the exemption period. That includes computers, cooling equipment, business owned substations, backup power, and battery systems. Ala. Code 40-9B-4(a) and (b) The same 10, 20, and 30 year tiers apply as on the sales tax side. School property taxes can never be abated. An AI data center always pays the education millage. Alabama Department of Revenue tax incentives summary For an abatement granted on or after January 1, 2027 to a center with total peak demand of 100 megawatts or greater, no abatement of state noneducational ad valorem taxes runs past the date the property is placed in service. The local noneducational abatement can still run the full term. Ala. Code 40-9B-4(b)(2), as amended by Act 2026-573 Act 2026-573 | Same data processing center definition. That means at least 20 new jobs at 40,000 dollars average total compensation. It also means the same 200 million dollar and 400 million dollar investment tiers. The local governing body or public authority is the one that grants it. Ala. Code 40-9B-5 An abatement ends early if the property stops being used in the active conduct of the enterprise for six consecutive months. It is available only for property the applicant or a related party has not already placed in service. Mortgage and recording taxes on the project financing documents can be abated too. Ala. Code 40-9B-3(a)(12) and 40-9B-4(d) and (e), as amended by Act 2026-573 Alabama Counties Association abatement guidance | Active. New applications are allowed until July 31, 2032. Ala. Code 40-9B-4.1, as amended by Act 2026-573 Act 2026-573 |
| Alabama Jobs Act investment credit | A discretionary credit worth up to 1.5 percent of qualified capital investment each year for up to 10 years. The term reaches up to 15 years for a project in a targeted or jumpstart county. Alabama Jobs Act summary The credit offsets Alabama income tax, financial institution excise tax, insurance premium tax, utility tax, and utility license tax. Being able to apply it against utility tax liability makes it the closest thing Alabama has to an electricity tax break for an AI data center. Unused credit carries forward five years. With the Governor's approval the first five years of credit can be sold to another taxpayer for at least 85 percent of face value. Alabama Jobs Act summary | The project has to conduct a qualifying activity. Data centers are on that list. Ala. Code 40-18-372 Most projects must create at least 50 net new jobs. Some activities need only net new full time jobs with no minimum count. Those are data centers, chemical manufacturing, engineering, design, research, and metal and machining technology or toolmaking. That carve out is what makes it worth having for a data center. Ala. Code 40-18-372(2) A project in a targeted or jumpstart county has to employ at least 10 new employees. It also has to involve at least 2 million dollars of capital. Ala. Code 40-18-376.1 Terms are set in a project agreement that the Governor and the company execute. Ala. Code 40-18-374 Alabama Jobs Act summary The program is Article 16 of Title 40 Chapter 18, Ala. Code 40-18-370 through 40-18-383. The code titles it the Alabama Jobs Act. | Active. Alabama Jobs Act summary |
| Alabama Jobs Act jobs credit | An annual cash rebate of up to 3 percent of the prior year gross payroll, fringe benefits excluded, for eligible employees who are Alabama residents. It is payable for up to 10 years. The rebate rises to up to 4 percent in a targeted or jumpstart county and for qualifying technology companies. Another 0.5 percent is available on veteran wages where veterans make up at least 12 percent of the workforce. Alabama Jobs Act summary Baldwin County EDA incentive overview | Same qualifying activity test as the investment credit. An AI data center qualifies with any number of net new full time jobs. Ala. Code 40-18-372 The rebate is discretionary. It is set in a project agreement that the Governor and the company execute. Ala. Code 40-18-374 Alabama Jobs Act summary The rebate sits in the same article as the investment credit, Ala. Code 40-18-370 through 40-18-383. | Active. Alabama Jobs Act summary |
| 2026 abatement rollback with community investment extension and clawback (HB399) | This is not a new benefit. It is a rollback that reshapes the whole program. For an abatement granted on or after January 1, 2027 the maximum exemption period drops from 30 years to 20. An operator can win the extra 10 years back, for a 30 year total. That takes two things. The operator must hit the capital investment thresholds. The operator must also sign a binding written agreement committing to qualified local investments for the benefited community. That agreement needs approval from the Department of Revenue, the Department of Commerce, and the affected local governing body. Ala. Code 40-9B-3(a)(12)a.2.(iv), added by Act 2026-573 Qualified local investments means 1) infrastructure such as roads and bridges and other public facilities, 2) broadband in an unserved area, 3) water or wastewater system upgrades, or 4) local education support for public K-12 schools, public charter schools, career technical centers, or community college programs. The agreement has to state the nature, timing, dollar value, and verification procedures. Miss any material obligation and 1) the extension is revoked, 2) the term reverts to 20 years, and 3) the operator repays every state tax abated during the extended period plus interest. HB399 enrolled text The act does three more things. 1) It ends state level abatements at the placed in service date for centers of 100 megawatts or greater, on buildings and power infrastructure. 2) It routes the newly collected state sales tax to the State General Fund. 3) It pushes the application sunset from July 31, 2028 out to July 31, 2032. Alabama Reporter DatacenterDynamics BillTrack50 summary of HB399 | Representative Leigh Hulsey sponsored it. Senator Andrew Jones carried it in the Senate. The House passed it 102 to 0 on March 10, 2026. The Senate passed it 32 to 0 on April 9, 2026. The House concurred in the Senate amendment 102 to 0 the same day. HB399 bill history Alabama Reflector roundup of the April 7 to 9, 2026 votes Governor Ivey approved it on April 16, 2026. It became Act 2026-573. Nothing in the act applies to an incentive that is part of a project executed before the June 1, 2026 effective date. The same holds for expansions of that project for 10 years after that date. The companion Senate version was SB265. HB399 is the bill that passed. Alabama Reporter on HB399 and SB265 HB399 enrolled text The act reaches Ala. Code 40-9B-3, 40-9B-4, 40-9B-4.1, and 40-23-35. The definitions, the abatement authority, the community investment agreement, and the sales tax distribution all move together. | Enacted as Act 2026-573, approved April 16, 2026, effective June 1, 2026. HB399 enrolled text, Section 3 Alabama Secretary of State act record |
| Large load data center electric contract standard (SB270) | No tax benefit here. This is a 2026 ratepayer protection law. It adds a new code section telling the Public Service Commission when a retail electric service contract with a large load data center customer is consistent with the public interest. The test looks at two things. One is whether the pricing and terms over the contract term are expected to recover from the AI data center the incremental costs of serving it. The other is whether the contract promotes positive benefits for the utility's other retail customers. Incremental costs means the added generation, transmission, distribution, sale, and furnishing costs, including fuel costs and taxes, that the utility would not incur but for that contract. SB270 enrolled text Positive benefit factors include 1) whether the contract could lower costs for other customers, 2) whether the customer increases the efficiency of the utility's power system, and 3) whether it contributes to economic growth in the community. MultiState comparison of state ratepayer protection bills BillTrack50 summary of SB270 | A large load data center customer has to meet three conditions. 1) It has signed a retail electric contract requiring the utility to serve an expected total peak demand of 150 megawatts or greater at one or more contiguous parcels of land. 2) It meets the data processing center definition in Ala. Code 40-9B-3. 3) It operates solely for the purpose of data processing. The terms and conditions the commission weighs include minimum contract length, upfront payments, security and collateral, and minimum payment. SB270 enrolled text Senator Lance Bell of Pell City sponsored it. The Senate passed it 30 to 0 on March 12, 2026. The House passed it as amended 100 to 1 on April 8, 2026. The Senate concurred 33 to 0 the same day. SB270 bill history Alabama Senate daily action, April 8, 2026 The new code section is numbered Ala. Code 37-4-22.1. It works alongside the commission's existing authority under Section 37-4-22. | Enacted as Act 2026-610, approved by Governor Ivey on April 16, 2026, effective October 1, 2026. It is not yet in force. SB270 enrolled text, Section 2 Alabama Secretary of State act record |
County and local programs
Cullman County
The city of Cullman adopted a 12 month AI data center moratorium in June 2026, part of a wave of local pauses across central and north Alabama. al.com
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| City of Cullman data center moratorium | No incentive. The Cullman City Council voted unanimously on June 22, 2026 for a year long moratorium on new or expanding data center development. It did so without commentary. al.com During the pause, city staff, the Planning Commission, and the city attorney have four tasks. 1) Review what AI data centers do to infrastructure, environment, traffic, noise, water resources, and community character. 2) Suggest zoning regulations. 3) Hold public hearings. 4) Report back to the council. The resolution carries penalties to enforce it. al.com WBRC | The moratorium blocks development applications inside the city limits. It does not touch state abatement eligibility for a project elsewhere in the county. al.com | Active now. The council adopted Resolution 2026-116 at its June 22, 2026 meeting. The one year pause holds into June 2027 unless the council lifts or extends it first. City of Cullman council agenda for June 22, 2026 The Cullman Times |
Jackson County
Google built the state's first large scale AI data center at Bridgeport under the 2012 abatement law and announced another 1.5 billion dollars of expansion in June 2026. Google Made in Alabama on the Bridgeport groundbreaking al.com on the 2012 data processing center incentive act Jackson County also counts as a targeted county, which raises what the Alabama Jobs Act pays. ADECA Alabama Jobs Act summary listing the 2026 targeted counties
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Google Bridgeport data center incentives and 2026 expansion | Google picked the former TVA Widows Creek coal plant site in Bridgeport for a 600 million dollar data center, announced in June 2015. It was the first project recruited under Alabama's 2012 data center abatement law and the Alabama Jobs Act. State and local packages abated construction taxes among other items. TVA power arrangements were part of the deal. al.com Made in Alabama on the Widows Creek site Google broke ground in April 2018. Made in Alabama On June 15, 2026 Google said it will put another 1.5 billion dollars into the Jackson County campus across 2026 and 2027. That is one of the largest economic development announcements northeast Alabama has seen. Google Alabama Reporter The company and 2026 coverage now describe hundreds of full time jobs on site rather than the roughly 100 reported at opening. Alongside the expansion Google announced a 2 million dollar Energy Impact Fund with TVA and CAANEAL for local energy efficiency and weatherization work. It also announced a 550,000 dollar donation for STEM kits for local fourth through eighth graders. al.com | The project used the data processing center abatements and negotiated Alabama Jobs Act terms. Ala. Code 40-18-372 Jackson County is a targeted county rather than a jumpstart county. The Alabama Jobs Act defines a targeted county as any Alabama county with a population of 60,000 or less, as determined each January 1 by the Commissioner of Labor from the most current data available. A jumpstart county is one that does not qualify as a targeted county, has had negative population growth over the last five years, and contains no more than two opportunity zones as they existed on June 1, 2019. Ala. Code 40-18-376.1 Jackson County counted 52,579 residents in the 2020 census. ADECA Census QuickFacts 2026 targeted and jumpstart counties map Alabama Jobs Act summary listing the 2026 targeted counties That status raises the Alabama Jobs Act payroll rebate toward 4 percent. It also stretches the investment credit to 15 years for a new project sited there. Both apply subject to the floor of 10 employees and 2 million dollars of capital. Ala. Code 40-18-376.1 The abatements themselves are authorized by Ala. Code 40-9B-4. That section lets a taxing jurisdiction abate noneducational property taxes, construction related transaction taxes, and mortgage and recording taxes. | Live. Google says the Bridgeport campus has operated since 2019. On June 15, 2026 the company committed another 1.5 billion dollars across 2026 and 2027. Google announcement of its June 2026 Alabama investment |
Jefferson County
Jefferson County holds both ends of the Alabama story. It has the state's biggest proposed campus, Project Marvel in Bessemer, now owned by QTS Data Centers al.com, and the state's biggest incentive package, the 3.2 billion dollar abatement deal Birmingham's Industrial Development Board approved for the Nebius AI factory al.com. It also has the state's strongest pushback, with moratoriums in Birmingham and Homewood and a fresh colocation proposal in Fairfield CBS 42 al.com on the Fairfield colocation proposal.
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Project Marvel in Bessemer, now QTS Data Centers | Bessemer approved a rezoning ordinance allowing data centers in October 2025. Alabama Reporter It approved the Project Marvel development plan on a 5 to 2 council vote in November 2025. DatacenterDynamics It rezoned roughly 914 more acres in April 2026. ABC 3340 on the April 2026 rezoning The campus is planned at 18 buildings and about 4.5 million square feet. It would draw 1,200 megawatts from Alabama Power. It would also use up to 130,000 gallons of municipal water a day under an agreement with the Warrior River Water Authority. The developer is Logistic Land Investment LLC, owned by the Atlanta based TPA Group. In late June 2026 an entity called RSTL LLC recorded the purchase of 1,607.42 acres in Bessemer for 431.73 million dollars. QTS Data Centers of Sterling, Virginia confirmed it is the buyer. That finally answered the question of who the end user would be. Birmingham Business Journal al.com On incentives, Mayor Kenneth Gulley said in July 2026 that QTS has committed not to seek local property tax incentives from the city. He said that should leave the city and the Bessemer Board of Education collecting new property tax revenue. al.com That commitment covers city property tax only. As of August 2, 2026 neither the company nor the city has said whether QTS will seek state level or sales tax abatements. Before the QTS deal the NAACP wrote in September 2025 that it had read reports of an abatement worth more than 500 million dollars. The letter itself presents that figure secondhand rather than as a confirmed number. NAACP opposition letter No signed abatement agreement has been made public. A residents' lawsuit against the city was voluntarily dismissed in June 2026. The city released the nondisclosure agreement its mayor and city attorney had signed only in July 2026, after the Southern Environmental Law Center threatened suit for the Alabama Rivers Alliance. Inside Climate News | Any abatement has to follow the data processing center rules. The local governing body has to grant it. Ala. Code 40-9B-5 An abatement granted on or after January 1, 2027 runs into the new 20 year cap. At this project's scale it also hits the 100 megawatt rules that end state level abatements at the placed in service date. A community investment agreement can buy the extra 10 years back. Ala. Code 40-9B-3(a)(12) and 40-9B-4, as amended by Act 2026-573 Act 2026-573 The power to abate in the first place comes from Ala. Code 40-9B-4. That section covers noneducational property taxes, construction related transaction taxes, and mortgage and recording taxes. | Live as a project. No city property tax abatement is on the table. QTS recorded the land purchase on June 25, 2026. In July 2026 Mayor Kenneth Gulley said the company had committed not to seek local property tax incentives. al.com reported it is unclear whether QTS is seeking any other incentives or abatements. al.com report on QTS and Bessemer property taxes |
| Birmingham and Homewood data center moratoriums | No incentive here. The Birmingham City Council enacted a six month suspension of all data center proposals in March 2026. The suspension gives the city time to rework its ordinances and zoning rules. GASP Demand Better for Birmingham page Homewood adopted a 12 month moratorium on new or expanded data centers on June 22, 2026, on a unanimous council vote. WBRC The Homewood Star Leeds, which sits mostly in Jefferson County, adopted a one year moratorium in June 2026 as well. CBS 42 WBRC on Cullman joining Birmingham, Homewood, and Leeds The Birmingham pause did not stop the city's Industrial Development Board from approving the Nebius incentive package on May 29, 2026. That project was already in the pipeline. al.com | A moratorium blocks new applications while the city studies zoning, infrastructure, and community impacts. It does not touch state abatement law. CBS 42 | Homewood's pause is live. Birmingham's six month pause started in March 2026, and the council passed zoning rules on June 9, 2026 to take effect when it ended. The St. Clair News-Aegis reported on July 16, 2026 that Birmingham had lifted the pause and put that ordinance in its place. The St. Clair News-Aegis CBS 42 still listed Birmingham among the active moratoriums on July 15, 2026, crediting datacenterbans.com rather than its own reporting. WBRC on the Birmingham zoning vote CBS 42 Homewood's 12 month pause on facilities larger than one megawatt passed unanimously on June 22, 2026. It can be extended another six months. So it runs into June 2027 and could stretch to December 2027. WBRC on the Homewood vote |
| Fairfield colocation data center proposal | No approved incentive. In July 2026 Fairfield disclosed that a colocation AI data center is being proposed there. Fairfield is a city of about 9,500 people west of Birmingham. It set a town hall for July 28, 2026. Mayor Herman Carnes, Jr. stressed that the proposal is a colocation facility rather than a hyperscale campus. al.com The developer, the terms, and any abatement request had not been published as of August 2, 2026. DatacenterDynamics | Any abatement would run through the state data processing center rules. The city would be the granting authority. Ala. Code 40-9B-5 The abatement authority itself is Ala. Code 40-9B-4. That section sets out the noneducational property taxes, construction related transaction taxes, and mortgage and recording taxes that can be abated. | Pending, and now paused. The Fairfield City Council passed a temporary ban on future AI data center projects in the week of July 20, 2026. Mayor Herman Carnes, Jr. says the council can still vote to approve the Patmos proposal. Company executives are expected at a town hall on August 11, 2026. WBRC report on the Patmos proposal |
| Nebius AI factory Birmingham abatement package | This is the largest incentive package I found for any Alabama AI data center. On May 29, 2026 the City of Birmingham's Industrial Development Board voted unanimously to approve abatements for the Nebius AI factory. Six members were present. The AI factory is going up on about 75 acres along Lakeshore Parkway. The agreement abates 80 percent of construction related taxes, education taxes excluded. It abates 65 percent of noneducational property tax revenue. Both run across 30 years. Nebius puts the abatements at 3.234 billion dollars. It puts the taxes it will still pay to Birmingham, Jefferson County, and the state at 2.573 billion dollars. Both sit against an anticipated 35.89 billion dollars of investment over those 30 years. The two building complex would draw 300 megawatts. It would take up to 30 months to build. al.com | The 16 page agreement carries clawback provisions that revoke the abatements if the project misses its revenue and employment targets. The abatement level falls proportionally if total investment comes in under the company's estimate. Nebius projects 78 employees within three years at a total payroll of 6.9 million dollars. That is an average salary of 88,525 dollars. It clears the state test of 20 jobs at 40,000 dollars. The city put in no upfront cash. Board chairman David Perry said the package was smaller than the company first asked for. al.com The package rides on the state data processing center rules. Ala. Code 40-9B-4 sets which taxes can be abated. Ala. Code 40-9B-5 makes the local governing body or public authority the grantor. | In effect. The Industrial Development Board approved the 30 year agreement on May 29, 2026. al.com on the Industrial Development Board vote The AI factory was under construction in Oxmoor Valley as of July 2026. al.com report on Bessemer and Birmingham incentives |
Madison County
Meta runs a Huntsville AI data center announced at 750 million dollars in 2018 that has since grown past 1.5 billion dollars, on land the company insisted on buying rather than taking as an incentive. al.com Meta on the Huntsville expansion
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Meta Huntsville land deal and local incentives through the City of Huntsville | Facebook, now Meta, bought 340 acres in the North Huntsville Industrial Park from the city for 8.5 million dollars, or 25,000 dollars an acre. It also took an option on 203 more acres at the same rate. The land was for the 750 million dollar data center announced in June 2018 with 100 jobs. City of Huntsville announcement Governor Ivey announcement The incentive ask was modest by Alabama standards. The state side was 86.25 million dollars of Alabama Jobs Act investment credit, plus AIDT workforce services valued at 710,000 dollars. The city put in 6.6 million dollars of indirect incentives. Those covered 1) utility extensions, 2) a water booster station to improve pressure in the park, and 3) one road resurfaced and another widened. The city also waived permitting fees worth about 2 million dollars. The Alabama Department of Commerce projected 537 million dollars of cumulative new payroll over 30 years. It projected 297 million dollars of total revenue over that period. That revenue splits 1) 144.2 million dollars to the state, 2) 88.7 million dollars to Madison County, and 3) 64.4 million dollars to Huntsville. al.com Meta said in June 2022 that expansion had pushed its Huntsville investment past 1.5 billion dollars. Meta In September 2025 it put its two Alabama campuses at a combined investment of more than 3 billion dollars. Meta on the Montgomery expansion A later phase adds two more buildings. It takes the campus toward roughly 3.5 million square feet. Meta Plateau Excavation project page | The land sale was a negotiated city transaction rather than a giveaway. Huntsville's director of urban and economic development called it unusual at the time. al.com Any tax abatements run through the state data processing center rules. The city is the granting authority. Ala. Code 40-9B-5 | Active. Meta's data center locations page shows the Huntsville campus as not yet complete as of July 2026. Ground broke in 2018. More than 1.5 billion dollars is invested. The campus will support 300 or more operational jobs once it is finished. Meta data center locations page |
Montgomery County
Meta is building an AI optimized campus in Montgomery, announced at 800 million dollars in 2024 and expanded past 1.5 billion dollars in September 2025. Governor Ivey announcement Made in Alabama
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Meta Montgomery Data Center incentive package | Governor Ivey announced in May 2024 that Meta would build an 800 million dollar next generation AI data center in Montgomery supporting 100 operational jobs. Governor Ivey announcement The building was first described at 715,000 square feet, off Interstate 65. WSFA In September 2025 Meta said an expansion would push its total investment in the capital region past 1.5 billion dollars. The expansion would put more than 1,000 skilled trade workers on site at peak construction. It would support more than 100 operational jobs when complete. It would reach a footprint near 1.3 million square feet. Meta Alabama Reporter Montgomery Chamber Made in Alabama On the incentive value, Lagniappe reported in May 2024 that the project came with a 42 million dollar tax exemption. Lagniappe No local abatement agreement itemizing separate city and county figures had been published as of August 2, 2026. | A data processing center abatement takes at least 20 new jobs paying an average of 40,000 dollars including benefits. The city or county governing body has to grant it. Ala. Code 40-9B-3 and 40-9B-5 What can actually be abated is set by Ala. Code 40-9B-4. That is noneducational property taxes, construction related transaction taxes, and mortgage and recording taxes. | Active and still building. Meta's data center locations page shows Montgomery as not yet complete. Ground broke in 2024. The state said at announcement that the AI data center is expected to go online at the end of 2026. Meta data center locations page Governor Ivey announcement |
Morgan County
The county commission adopted a one year moratorium in June 2026 that blocked a proposed bitcoin mining data center near Somerville. WAFF
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Morgan County data center moratorium | No incentive. On June 23, 2026 the Morgan County Commission voted 4 to 0 for a 12 month moratorium on data center cryptomining projects. The vote blocked a VoltCore proposal for a bitcoin mining facility on about 15 acres near Union Road in southeast Morgan County. WAFF DatacenterDynamics Commission Chairman Ray Long said resident concerns about noise, environment, road damage, and power infrastructure drove the vote. He said the pause buys officials time to gather more information. Hartselle Enquirer | The moratorium is a county land use action. It does not change eligibility for state abatements. A small mining site would struggle to reach those abatements anyway, given the test of 20 jobs at 40,000 dollars average compensation. Ala. Code 40-9B-3 | Active now. The commission approved the 12 month pause 4 to 0 on June 23, 2026. It covers unincorporated Morgan County. So it runs into June 2027 unless the commission acts first. The Decatur Daily |
St. Clair County
Springville adopted an AI data center moratorium on July 6, 2026, and Leeds, which straddles the Jefferson and St. Clair line, did the same in June 2026. CBS 42 St. Clair News-Aegis Atlas Alabama on Leeds
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Springville and Leeds data center moratoriums | No incentive. Leeds passed a one year moratorium in June 2026. Springville followed with its own. Both run up to a year. The pauses let local officials review zoning rules and study the land use before any AI data center application can be filed. The St. Clair News Aegis Reporting counted five active municipal moratoriums statewide as of mid July 2026. Four of them were in central Alabama. CBS 42 Data Center Bans tracker | These are municipal land use pauses. They do not alter state abatement law. CBS 42 | Both are live. Leeds adopted its ordinance on June 8, 2026. It expires one year after passage. So it runs to June 2027. Shelby County Reporter Springville adopted its pause at the July 6, 2026 council meeting. It runs up to a year. CBS 42 counted both cities as active on July 15, 2026. The St. Clair News Aegis CBS 42 |
Alaska has no AI data center incentive program and no statewide sales tax, so there is no state sales tax for a program to exempt. Office of the State Assessor A 2026 utility bill aimed at AI data centers passed the Senate but died when the legislature adjourned in May 2026. SB 250 bill history Alaska Beacon on the May 20, 2026 adjournment What the state offers instead is land, including a July 2026 proposal to hand a 30 square mile Mat-Su parcel to the state development authority at no cost for a district that would include AI data centers. DNR preliminary decision Alaska Beacon
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| AIDEA project financing for data centers | Loans and development financing from the state development finance authority. It has actually funded AI data centers. AS 44.88.080 The AIDEA board approved Resolution G25-03 on June 17, 2025 to lend to Greensparc Alaska LLC for an edge AI data center in Cordova. AIDEA Resolution G25-03 In December 2023 the board approved Resolution G23-14 authorizing up to 150,000 dollars for feasibility work on five or more edge AI data centers across Southeast, Southcentral, and Central Alaska. AIDEA Resolution G23-14 | AIDEA has to approve the financing. Before it approves a development finance project under AS 44.88.172, it has to prepare a finance plan. AS 44.88.173 AIDEA treats a project feasibility study as part of preparing that plan. AIDEA Resolution G23-14 This is general purpose financing rather than a tax incentive. There is no eligibility track written for AI data centers. No further AI data center lending resolution appeared on an AIDEA board agenda through the June 17, 2026 meeting. That meeting's published agenda covered executive session, AIDEA financials, and legislative matters. AIDEA board meeting schedule AIDEA board agenda for June 17, 2026 | Active. AIDEA has kept its lending authority open. It has made two AI data center awards, the most recent on June 17, 2025. AIDEA Resolution G25-03 AIDEA Resolution G23-14 |
| Municipal economic development property tax exemption | A city or borough may by ordinance exempt economic development property from local property tax. It may exempt all such property or only some types, for a designated period, and in whole or in part. A municipality may instead let those taxes be deferred. AS 29.45.050(m) FindLaw AS 29.45.050 This is the closest general tool an AI data center could use. Property tax on an AI data center is levied by Alaska municipalities and not by the state. Alaska Division of Community and Regional Affairs The one state level property tax reaches only oil and gas exploration, production, and pipeline transportation property. AS 43.56.010 | The municipality has to adopt the exemption by local ordinance. That ordinance must set out specific eligibility requirements and require a written application for each exemption or deferral. AS 29.45.050(m) The exemption is optional in every sense. Each municipality decides for itself whether to enact it at all and on what terms. Alaska Division of Community and Regional Affairs As of August 2, 2026 I found no Alaska municipality that has applied it to an AI data center, and no local ordinance either granting or refusing one. | Active as a standing option in state law. But as of August 2, 2026 I found no Alaska municipality that has used it for an AI data center. AS 29.45.050(m) |
| Proposed no cost state land transfer to AIDEA for a Mat-Su industrial and energy district | A land benefit rather than a tax benefit. It is only proposed. The Department of Natural Resources released a preliminary decision in July 2026. It would transfer a 30 square mile parcel of state land to the Alaska Industrial Development and Export Authority at no cost. The parcel sits just north of the city of Houston, about 60 road miles north of Anchorage. DNR preliminary decision AIDEA calls the site a multi use industrial and energy development district. The 41 page decision document describes 1) a logistics hub near the Alaska Railroad and the Parks Highway, 2) transmission infrastructure for utilities such as electricity and natural gas, 3) advanced manufacturing pads, and 4) scalable data centers that would draw on those utilities. Mat-Su Sentinel Alaska Beacon | Nothing is settled. The transfer would be a noncompetitive sale to AIDEA, following an application the authority filed in December 2025. DNR is taking public comment on the preliminary decision through August 19, 2026. Mat-Su Sentinel No AI data center tenant has been named. No incentive terms have been offered to any developer. AIDEA executive director Randy Ruaro said there are no predetermined and set land use decisions. He said any such decision would come only after the transfer goes through and after consultation with local officials. So a tax abatement or lease concession for a future tenant would be a later and separate question. Alaska News Source Local officials including the Houston mayor and the Mat-Su borough manager said they were not told about the proposal before the public notice came out. Alaska Beacon | Proposed only. Public comment runs through August 19, 2026. DNR has issued no final decision. Mat-Su Sentinel |
| SB 250 data center utility service bill | None. This was a ratepayer protection bill rather than an incentive. Per the sponsor statement, utility contracts with AI data centers had to 1) fully account for and assign infrastructure costs to the data center, 2) assign new variable costs through a separate customer specific cost of power or gas cost adjustment, and 3) make sure other customers' adjustments do not increase. SB 250 bill history SB 250 sponsor statement The bill also required commission approved service contracts, backup power plans favoring renewables, and decommissioning and recycling plans filed with the Department of Environmental Conservation. BillTrack50 summary | Sen. Loki Tobin of Anchorage sponsored it. It would have applied to AI data centers seeking utility service anywhere in Alaska. SB 250 bill history Nothing revived it after adjournment. Every special session called since has been about the Alaska LNG gas pipeline tax rather than AI data centers. That includes a third one Gov. Dunleavy called on July 16, 2026. Alaska Public Media | Dead. The Senate engrossed and passed it May 16, 2026. The House referred it to its Community and Regional Affairs Committee, which heard it on May 18, 2026 and held it. The House never voted on it. It died when the regular session adjourned May 20, 2026. It was still dead on August 2, 2026. SB 250 bill history Alaska SB 250 bill history, 34th Legislature Alaska News Source Alaska Beacon on the May 20, 2026 adjournment |
County and local programs
Anchorage Borough
Anchorage adopted AI data center zoning rules on March 27, 2026 and offers no local incentive. Davis Wright Tremaine An April 2026 Air Force lease solicitation also floated commercial AI data center sites at Joint Base Elmendorf Richardson. SAM.gov solicitation AFCEC-26-R-0006
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| AO 2026-27 data center land use ordinance (regulation, not an incentive) | No tax benefit. The ordinance defines a data center as a distinct land use for the first time and makes it a conditional use. That means each project goes through a public review instead of being built by right. Anchorage AO 2026-27 I read the adopted text. It reaches a facility or co-located facilities that house computer servers and require at least 20 megawatts of electrical demand at peak operation. It splits them into small under 2,000 servers and large at 2,000 or more. Anchorage AO 2026-27 An applicant must file a noise mitigation study and written statements from the electrical, water, and wastewater utilities confirming capacity at peak operation. The water and wastewater utilities may condition a statement on privately funded upgrades that then become a condition of the land use permit. Anchorage AO 2026-27 Siting standards require 1) screening of cooling and power equipment, 2) landscaping buffers next to residential zones, and 3) a setback of at least 200 feet from residential or other noise sensitive uses. The Director may waive that setback only for small facilities. Davis Wright Tremaine Anchorage AO 2026-27 | Applies to AI data centers and similar energy intensive facilities proposed in the Municipality of Anchorage. The Anchorage Assembly adopted it on March 27, 2026 on a 10 to 2 vote, before any large project had been proposed. Anchorage Daily News On the zoning question, the adopted text adds data centers as a conditional use in the I-1 light industrial, I-2 heavy industrial, and I-3 rural industrial districts under the old code. It also amends the tables of allowed uses for the Anchorage Bowl, Girdwood, and Chugiak-Eagle River, making it a conditional use in certain zones, none of them residential. Anchorage AO 2026-27 Press accounts paraphrase those zones loosely. Some describe them as industrial, port, airport, and public lands, and others as commercial and industrial. So the ordinance itself is the reliable text. Must Read Alaska Davis Wright Tremaine The ordinance also directs the Planning Department to do follow up work on energy intensive uses. The framework is expected to keep developing. No amendment, repeal, or legal challenge to it surfaced through August 2, 2026. | In effect now. Section 10 of the ordinance makes it effective immediately upon passage and approval by the Assembly. The text sets no expiration date. So it has governed AI data center applications since the March 27, 2026 vote. Anchorage AO 2026-27 Davis Wright Tremaine |
Chugach
The city of Cordova hosts a small hydro powered edge AI data center built with the local electric cooperative, and the money came from an AIDEA loan in June 2025 rather than from any local tax break. AIDEA Resolution G25-03 Greensparc says the first modular unit it deployed with Cordova Electric Cooperative in spring 2024 is 150 kilowatts and sits at the Humpback Creek hydro facility, which both powers and cools it. Greensparc Trade press has put the site at 170 kilowatts, but the company's own project page is the better number for that original deployment.
Fairbanks North Star Borough
An April 2026 Air Force lease solicitation floated commercial AI data center sites at Eielson Air Force Base near Fairbanks, and the borough itself has no incentive. SAM.gov solicitation AFCEC-26-R-0006 Proposals closed June 29, 2026 and the Air Force had announced no selection or award as of August 2, 2026, so the winning offeror and any ground lease terms are still not public. GovTribe
Matanuska-Susitna Borough
The Mat-Su Borough offers no AI data center tax incentive, and its code does not regulate these facilities or require a special permit for one. Mat-Su Sentinel Alaska Beacon In March 2026 the assembly overrode a mayoral veto to put borough staff time behind an effort to recruit an AI data center to borough land. Alaska Public Media The city of Houston, whose boundaries abut the parcel the state now proposes to give AIDEA, is weighing Ordinance No. 26-11, which would add a new Chapter 10.15 to the Houston Municipal Code prohibiting the construction, establishment, and operation of data centers inside city limits and attach a penalty under HMC 1.16. Houston City Council agenda, June 11, 2026 The council held its public hearing on June 11, 2026. It has since pushed the vote to August 13, 2026. Alaska Beacon
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Terra Energy Center partnership resolution (recruitment support, not an incentive) | No tax benefit. Resolution RS 26-019 sets up a two year partnership. Under it, borough staff time and resources help Terra Energy Center Corp. find companies interested in developing an AI data center or other high energy use facility on borough land. That land sits near Port MacKenzie, Big Lake, or the proposed West Susitna Access Road. Mat-Su Borough RS 26-019 Alaska Public Media Officials said the point is to land an anchor customer for a coal fired power plant that Terra parent company Flatlands Energy has proposed near Skwentna. Alaska Business Magazine Alaska Public Media | A memo attached to the measure says it does not require the borough to sell or lease land. It also does not commit the borough to allowing an AI data center. Alaska Business Magazine Alaska Public Media The assembly first approved the resolution 5 to 2. Mayor Edna DeVries vetoed it. The assembly overrode the veto 6 to 1 on March 17, 2026. Assembly member Stephanie Nowers was the lone no. Alaska Public Media More than a dozen residents testified against AI data centers at that meeting. About three spoke in support. Mat-Su Sentinel Borough code does not regulate AI data centers or energy generation facilities. It does not require a special permit for either one. Alaska Beacon | In effect now. The resolution runs for 24 months from the date of adoption. The assembly can extend it. The adopted text is dated March 3, 2026, so it lapses on March 3, 2028. Mat-Su Borough RS 26-019 adopted text |
North Slope Borough
Stak Energy proposes a 500 million dollar gas powered AI data center on state land off the Dalton Highway, and no local incentive has turned up. Alaska Beacon The borough is not offering an abatement. It runs the other way. DNR treats the project as an addition to the North Slope Borough property tax base, noting the borough draws more than 90 percent of its tax revenue from taxable industrial property and spends it on schools and public services. DNR preliminary decision ADL 422741 The borough was one of the agencies DNR circulated the application to, and under AS 38.05.946 it is entitled to notice and may hold its own public hearing within 30 days of receiving that notice. DNR preliminary decision ADL 422741 The state review is still open. DNR extended public comment to July 17, 2026 after more than 500 comments came in, most of them opposed, and as of August 2, 2026 the department had issued no final best interest decision and said only that it will weigh the comments first. Anchorage Daily News
Petersburg Borough
Greensparc has proposed a small edge AI data center at the former Ocean Beauty Seafoods canning plant on the Petersburg waterfront. Data Center Dynamics The site is privately owned, so the deal runs between the company and the site owner and the borough has offered no incentive terms. Petersburg Municipal Power and Light issued a fact sheet on April 28, 2026. The utility said it will supply electricity and the other utilities at the rates already in the municipal code. It also said the water, sewer, and garbage service will be similar to a small retail shop in town. Petersburg data center FAQ As of that date the borough had not received a building permit application or plans, and the early estimate was a single story building of roughly 1,500 to 2,000 square feet. Petersburg data center FAQ
Wrangell Borough
The Wrangell Borough Assembly voted unanimously on June 9, 2026 to deny Greensparc a land lease for a 10,000 square foot AI data center at the borough owned Six Mile Mill deepwater port site, so there is no project here and no incentive. KSTK The borough manager recommended keeping the waterfront property for future maritime industry expansion, and the assembly went with that recommendation. Wrangell Borough Assembly meeting, June 9, 2026 KSTK
Arizona waives state, county, and city sales and use tax on AI data center equipment for 10 or 20 years, with no job requirement anywhere in the statute. A.R.S. § 41-1519 Arizona Commerce Authority The door is now shut. Section 31 of the 2026-2027 taxation omnibus, which Governor Hobbs signed on June 13, 2026 as Chapter 140 of the 2026 session laws, bars the Arizona Commerce Authority from accepting any new certification application from July 1, 2026 through June 30, 2029. Laws 2026, Ch. 140, sec. 31 A center certified before that date keeps everything it had. KPMG TWIST
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Computer Data Center Program sales and use tax exemption | This takes state, county, and city transaction privilege tax and use tax off computer data center equipment. Covered equipment includes 1) servers, chassis, racks, and cabling, 2) enabling software, 3) cooling and temperature control systems, 4) generators and the full electrical chain, 5) water conservation systems, 6) monitoring and security systems, 7) modular data centers, and 8) refreshments, replacements, and upgrades to any of it. A.R.S. § 41-1519 A.R.S. § 42-5061 A.R.S. § 42-5159 A.R.S. § 42-6004 Relief runs from the effective date of certification to the end of the tenth full calendar year after the certification year. A sustainable redevelopment project instead runs to the twentieth year. A prime contractor building a certified AI data center gets the same relief on materials under the prime contracting classification. A.R.S. § 41-1519(O)(14) A.R.S. § 42-5075 Arizona Commerce Authority | You need certification from the Arizona Commerce Authority. Arizona Commerce Authority A new AI data center must reach the investment floor by the fifth anniversary of certification. That floor is 25 million dollars in a county of 800,000 people or fewer. It rises to 50 million dollars in a county of more than 800,000 people. Only Maricopa and Pima clear 800,000. Every other Arizona county sits at the lower tier. An existing center qualified instead by investing 250 million dollars in the 72 months before September 1, 2013. A.R.S. § 41-1519 A sustainable redevelopment project is one of three things. It can be a new build of at least 200 million dollars that earns Energy Star, Green Globes, LEED, or an equivalent green rating it did not hold before. It can be an existing facility at least 50 percent vacant for six of the twelve months before acquisition. Or it can be an existing facility that earns one of those green ratings it did not hold before. A.R.S. § 41-1519(O)(13) There is no job, wage, or benefit test anywhere in the statute. A colocation tenant qualifies on its own if it contracts for at least 500 kilowatts per month for two or more years. Missing the investment floor means 1) revocation, 2) termination of everyone else's qualification period, and 3) recapture from owners and operators. Ordinary colocation tenants are shielded from recapture. A.R.S. § 41-1519 | Closed to new applicants. The Arizona Commerce Authority may not accept any new application from July 1, 2026 through June 30, 2029. Laws 2026, Ch. 140, sec. 31 H.B. 4168, sec. 31 Existing certifications are untouched and run their full 10 or 20 years. KPMG TWIST The Commerce Authority says 83 AI data center projects have benefited since 2013. It says 113 applications came in the two weeks before the pause. It says applications filed before July 1 can still be approved. The Authority has 60 days to act on each one. KJZZ If nothing else changes, the window reopens July 1, 2029. The underlying statutory cutoff for new certifications is still December 31, 2033. A.R.S. § 41-1519 |
| Three year moratorium on new computer data center certifications | This is a restriction, not a benefit. Section 31 of the 2026-2027 taxation omnibus sets the rule. Notwithstanding any other law, from July 1, 2026 through June 30, 2029 the Arizona Commerce Authority may not accept applications for any new computer data center under A.R.S. § 41-1519. No new computer data center qualifies for the relief in that window. The section applies retroactively from and after June 30, 2026. It repeals itself from and after June 30, 2029. I read the enrolled text. Laws 2026, Ch. 140, sec. 31 A.R.S. § 41-1519 The vehicle was H.B. 4168, the taxation omnibus of the fifty-seventh legislature, second regular session. The moratorium sits in section 31 of that bill. H.B. 4168, sec. 31 | The scope is narrow and worth reading carefully. The bar is on accepting new applications and on new AI data centers qualifying. A center that completed certification before the cutoff keeps its relief for the whole qualification period. Nothing in the section touches 1) an existing certification, 2) a transfer of a certified center, or 3) a colocation tenant signing into an already certified center. Laws 2026, Ch. 140, sec. 31 Nothing bars anyone from building an AI data center in Arizona without the exemption. KPMG TWIST | Enacted as Chapter 140 of the 2026 session laws. Governor Hobbs signed the 18.3 billion dollar fiscal year 2027 budget package on Saturday, June 13, 2026. In May she had vetoed a 17.9 billion dollar Republican budget that would have left the exemption alone. Laws 2026, Ch. 140 Bloomberg Tax Arizona Capitol Times KNAU Developers filed 113 applications between June 15 and June 30, 2026. Only 123 applications were filed in the whole 13 years from August 2013 through June 14, 2026. So the practical bite of the pause is smaller than it looks. Axios Phoenix Arizona Capitol Times |
| International Operations Center utility tax relief | This takes transaction privilege and use tax off retail purchases of electricity and natural gas by a certified international operations center. A.R.S. § 41-1520 A.R.S. § 42-5063(C)(7) A.R.S. § 42-5159(G)(2) A.R.S. § 42-6012(2) It is the only Arizona tax break that reaches an AI data center power bill. The computer data center exemption covers equipment only. A.R.S. § 41-1519(M) separately bars a certified center from generating electricity for resale or selling power outside the center. A.R.S. § 41-1519(M) The 2015 law was written around Apple's Mesa facility. Arizona Commerce Authority Associated Press | You need certification from the Arizona Commerce Authority, then all of the following. At least 100 million dollars of new capital assets in each of ten consecutive taxable years. Excess in any year carries forward against later years. At least 1.25 billion dollars of new capital assets by the tenth anniversary of certification. At least 100 million dollars invested in one or more new Arizona renewable energy facilities producing power for self consumption. Those facilities must be completed within three years of the application or by December 31, 2030, whichever comes first. Construction must start within six months of the application. A.R.S. § 41-1520 By the fifth year each renewable facility operates, at least 51 percent of its output must go to self consumption in Arizona. A qualifying renewable energy facility needs at least 30 million dollars of investment. It also needs either 20 megawatts of capacity or 40,000 megawatt hours of typical annual generation. Missing the annual 100 million dollar mark can be cured by repaying that year's relief within 60 days. ACA International Operations Center rules | Active. The moratorium in the 2026-2027 taxation omnibus reaches only A.R.S. § 41-1519, not this section. Laws 2026, Ch. 140, sec. 31 A.R.S. § 41-1520 carries no cutoff date for new certifications. A.R.S. § 41-1520 The Arizona Commerce Authority says it may certify these centers through December 31, 2030. Arizona Commerce Authority |
| Business personal property 2.5 percent valuation factor | Personal property first classified in tax year 2022 or later in class one, class two (P), or class six subclasses two and three is valued using a factor of two and one half percent. That factor applies every year with no step up. A.R.S. § 42-13054(B)(4) Servers, cooling gear, switchgear, and generators are the bulk of an AI data center taxable value in Arizona. So this is the single most useful property tax rule in the state for this industry. It needs no application and has no test aimed at AI data centers. It was enacted by H.B. 2822 in 2022. H.B. 2822, Laws 2022, Ch. 103 Arizona Department of Revenue | It is automatic for qualifying personal property valued by the county assessor. Two real limits sit in subsection C. The rule does not apply to property valued centrally by the Department of Revenue. It also may not push a valuation below the Department minimum value for property in use. So the effective floor is higher than a flat two and one half percent of cost. A.R.S. § 42-13054(C) | Active. A.R.S. § 42-13054 |
| Foreign trade zone class six property classification | Real and personal property inside a foreign trade zone or subzone that is activated with US Customs is reclassified from class one to class six. It is then assessed at five percent of full cash value instead of the class one commercial ratio. A.R.S. § 42-12006(2) Arizona Department of Revenue A.R.S. § 42-15006 Class one is 15.5 percent for 2026, so the reduction is about 68 percent now. Class one drops to 15 percent from 2027 forward, so the reduction is about 67 percent going forward. A.R.S. § 42-15001 Arizona has no direct property tax exemption for AI data center real property. So this is the main statutory route to a lower real property bill. | The site must sit in a federally approved zone or subzone. It must also be activated for foreign trade zone use by the district director of US Customs under 19 C.F.R. 146.6. Arizona Department of Revenue That means approval from the federal Foreign Trade Zones Board through the local zone grantee, then activation. Both take time and money. Arizona Department of Revenue Arizona Commerce Authority Reclassification is a change in qualifying status rather than a change in use. So it does not trigger a recalculation of limited property value. Arizona Department of Revenue | Active. A.R.S. § 42-12006 |
| Government Property Lease Excise Tax (GPLET) | A government lessor takes title to the project site. It then leases the site back to the developer. Ordinary property tax is replaced by an excise tax keyed to building square footage for a lease term of up to 25 years. Arizona Department of Revenue Arizona Commerce Authority A full eight year abatement of even that excise tax is available for some projects. The project must sit inside a single central business district in a designated slum or blighted area. It must also at least double the property value. A.R.S. § 42-6209 Mesa used a GPLET lease for the 1 billion dollar Google AI data center in 2019. DatacenterDynamics | You need a negotiated development agreement with a government lessor willing to take title. A city, a town, a county, or a county stadium district can all serve as the government lessor. A.R.S. § 42-6201(1) Only a city or town can grant the eight year abatement of the excise tax itself. The 2017 reforms cap that abated period at eight years. After that the property returns to the regular rolls. A.R.S. § 42-6209 In practice every Arizona AI data center deal I found ran through a city rather than a county. Arizona Department of Revenue | Active. A.R.S. §§ 42-6201 through 42-6210 |
| Qualified Facility Tax Credit | This is a refundable income tax credit equal to ten percent of the lesser of total qualifying investment or a per job cap. The per job cap is 200,000 dollars of investment per net new full time position. It rises to 300,000 dollars per position when total qualifying investment reaches 2 billion dollars. So the credit works out to 20,000 or 30,000 dollars per job. A.R.S. § 41-1512 The Arizona Commerce Authority may not preapprove more than 30 million dollars for one taxpayer or more than 125 million dollars statewide in a calendar year. The credit is claimed in five equal annual installments. Arizona Commerce Authority The credit itself sits in A.R.S. § 43-1083.03 for individual income tax and A.R.S. § 43-1164.04 for corporate income tax. H.B. 4168 amended both of those sections in 2026. H.B. 4168 | The facility must devote at least 80 percent of its property and payroll to 1) qualified manufacturing, 2) qualified manufacturing related research and development, or 3) a headquarters. The statute defines manufacturing as turning raw or prepared materials into usable products. It expressly excludes generating electricity. A.R.S. § 41-1512 The Arizona Commerce Authority requires 1) preapproval and postapproval, 2) employee compensation and employer paid health benefit tests, and 3) documentation of 250,000 dollars of qualifying investment within twelve months of preapproval. Missing that documentation deadline means the preapproval lapses. Arizona Commerce Authority On the plain text a stand alone AI data center does not meet the 80 percent test. The Commerce Authority describes the program as one for headquarters facilities and manufacturing facilities, without ever mentioning data centers. Arizona Commerce Authority Some AI data center developers still market the credit as available. As of August 2, 2026 I could find no Arizona ruling, private letter, or Commerce Authority statement resolving the point either way. So treat it as an open question rather than a line item in a model. | Active for taxable years through December 31, 2030. There is no preapproval for taxable years after that. All five installments of a credit preapproved before January 1, 2031 survive a later repeal. A.R.S. § 41-1512 The 2026-2027 taxation omnibus amended A.R.S. §§ 43-1083.03 and 43-1164.04 only to strike the cross reference to the repealed Quality Jobs credit. Laws 2026, Ch. 140 |
| Quality Jobs Tax Credit (repealed 2026) | Before repeal this gave 3,000 dollars per net new qualifying job per year for up to three years. That capped out at 9,000 dollars per job. The credit ran against income tax or insurance premium tax. Arizona Commerce Authority It is gone. Sections 41-1525, 43-1074, 43-1161, and 20-224.03 were all repealed by the same 2026-2027 taxation omnibus that created the AI data center moratorium. The repeal is effective for taxable years beginning from and after December 31, 2025. The saving clause in section 36 preserves carryforward of credit amounts already earned in earlier years. Laws 2026, Ch. 140 The repealer was H.B. 4168. In that bill, 1) section 3 repeals 20-224.03, 2) section 8 repeals 41-1507 and 41-1525, 3) section 19 repeals 43-1074, and 4) section 24 repeals 43-1161. H.B. 4168 | It is no longer available. I list it here for two reasons. Published guidance still describes it as a live Arizona incentive. An AI data center feasibility model built before mid 2026 may still carry it. A.R.S. § 41-1525 Arizona Commerce Authority | Repealed for taxable years beginning from and after December 31, 2025. Carryforwards from prior years survive. Laws 2026, Ch. 140 |
County and local programs
Maricopa County
Metro Phoenix is one of the four or five largest AI data center markets in the country. Maricopa County itself grants nothing that I could find. Every local break here comes from a city, through a GPLET leaseback or a foreign trade zone site, and several of those same cities have spent 2025 and 2026 writing new restrictions instead. AZBEX DatacenterDynamics FTZ Board zone 221 record
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Mesa GPLET lease for the Google data center (Project Red Hawk) | Mesa took title to the site at Elliot and Sossaman Roads. It leases the site back to Google for 25 years. So a square footage excise tax stands in for property tax. Reporting at the time put the property tax saving at about 16 million dollars over the term. Against that, Mesa expected to collect roughly 33 million dollars of excise tax plus further city tax revenue. DatacenterDynamics | A development agreement and GPLET lease approved by the Mesa City Council in July 2019. Google worked through Stone Applications LLC during entitlement. DatacenterDynamics Construction on the first phase started in 2023. Phoenix Business Journal Arizona Technology Council The lease itself gives the tenant the notice of excise tax liability that A.R.S. § 42-6206 requires. It points to the whole article at A.R.S. §§ 42-6201 through 42-6210. Mesa GPLET lease with Stone Applications LLC | Live. The Mesa City Council took up the resolution on its July 1, 2019 agenda. It authorized the development agreement and the GPLET lease with Stone Applications LLC for the 187 acre site at Elliot and Sossaman Roads. Mesa City Council file 19-0809 The lease sets a rental period of 25 years running from the date the certificate of occupancy is issued for the first building on the land, not from signing. So the term cannot end before 2044. Mesa GPLET lease with Stone Applications LLC |
| Foreign trade zone class six sites in the Phoenix area | An activated zone or subzone parcel is assessed at five percent of full cash value instead of the class one commercial ratio. That is a cut of roughly two thirds on land, buildings, and equipment. A.R.S. § 42-12006(2) Arizona Department of Revenue The Apple Mesa facility sits inside FTZ 221. A Federal Register notice of proposed production activity at the site documents this. Federal Register | The site must be inside an existing zone or win a subzone designation from the federal Foreign Trade Zones Board through the local grantee. It must then be activated with US Customs. Arizona Department of Revenue Greater Phoenix hosts several zones, including FTZ 75 in Phoenix and FTZ 221 in Mesa. Greater Phoenix Economic Council | Live. The Foreign-Trade Zones Board lists Foreign Trade Zone 75 in Phoenix as active, approved March 25, 1982. The City of Phoenix is its grantee. FTZ Board zone 75 record It lists Foreign Trade Zone 221 in Mesa as active. That record shows 1) the City of Mesa Office of Economic Development as grantee, 2) a service area of the City of Mesa, and 3) a 2,000 acre activation limit. FTZ Board zone 221 record Neither record carries an end date. |
| Goodyear project by project incentives | Goodyear hosts a Microsoft campus. Arizona Technology Council It has no standing AI data center entitlement. The city negotiates each project. It points developers to foreign trade zone sites and GPLET as the two tools it actually has. Develop Goodyear Develop Goodyear foreign trade zone | Everything is negotiated with the Goodyear economic development office project by project. Develop Goodyear I found no local tax agreement on the public record for the Microsoft campuses in Goodyear or El Mirage as of August 2, 2026. El Mirage handled its side through a site plan amendment and a development agreement with Dermody Properties for three buildings totaling 750,000 square feet. Those are land use approvals rather than tax deals. Arizona Technology Council | Live as a practice rather than as a program. The Goodyear economic development incentives page is still up in July 2026. It still lists only state level programs plus the government property lease excise tax. The page shows no local AI data center entitlement of its own and no application deadline. Develop Goodyear |
| City zoning restrictions across the Valley | This one runs the other way. Chandler adopted the first Arizona AI data center ordinance in late 2022. The ordinance 1) limits data centers to areas with a planned area development in place, 2) treats them as an ancillary use, and 3) requires noise studies and mitigation. City of Chandler Phoenix followed with a zoning update. It makes data centers a permitted use only through a special permit that addresses health and safety. City of Phoenix Mesa adopted its own data center zoning rules in a July 2025 council vote. KJZZ 12 News Tempe passed Ordinance O2025.23 on July 1, 2025. It allows data centers in the MU-ED, GID and HID districts only, and only with a use permit. It also keeps data center buildings at least 500 feet from the property line of any residential site. Tempe Ordinance O2025.23 More Valley cities have been weighing restrictions of their own. AZBEX In December 2025 the Chandler City Council rejected the 2.5 billion dollar Active Infrastructure project by a 7 to 0 vote. Arizona Capitol Times Arizona’s Family | These are land use rules, not tax rules. They bind whether or not a project holds a state certification. They are now the binding constraint on siting in most of the Valley. AZBEX | In effect now. Chandler Ordinance 5033 added a definition of data center to chapter 35 of the city code. It barred the use unless it is approved as part of a planned area development. The council passed and adopted it in December 2022. Chandler Ordinance No. 5033 The Phoenix mayor and council approved the Phoenix zoning update on July 2, 2025. City of Phoenix Mesa passed and adopted Ordinance 5957 on July 8, 2025. It makes a data center its own land use. It lets the council permit one only through a planned area development overlay used with certain industrial districts. Mesa Ordinance No. 5957 None of the three carries a sunset. |
Mohave County
Mohave County is where the largest single proposed capital number I found in the state sits, and also where a county government has moved hardest against the industry. There is no incentive here. There are conditions. AZBEX AZBEX on the Entrata plan
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Mohave County data center zoning and utility conditions | This one runs the other way. In 2025 the Board of Supervisors dropped AI data center development as an economic development goal. It adopted Ordinance 2025-05, which requires data centers to provide on site energy and dry cooling technologies. Mohave County AZBEX On December 1, 2025 it adopted zoning amendments. Those amendments define data centers and require a special use permit in industrial and airport districts. A project must show its water and power impact before final approval. Mohave County Board of Supervisors | Most sites now need a special use permit on top of base zoning. Projects that had already filed a preliminary site plan may fall outside the new permit requirement. County staff described that point as unresolved at the time. Mohave County Board of Supervisors AZBEX | In effect now. The current Mohave County Zoning Ordinance 1) carries December 1, 2025 in its revision history, 2) defines a data center, and 3) puts data centers among the uses that need a special use permit in the manufacturing zones. That text survived the most recent revision of April 6, 2026, made by Ordinance 2026-04. Mohave County Zoning Ordinance |
| Entrata data center (Clean Cloud Energy) | I identified no county tax incentive. The site plan application filed with Mohave County lists several figures. They are 1) up to 12.5 billion dollars of capital investment for the powered shell, 2) a maximum capacity near 1.25 gigawatts, 3) 34 AI data center modules, 4) three high voltage substation pads, and 5) a hybrid cooling and water plant. The site is about 776 acres of unincorporated land near White Hills Airport, east of Highway 93. Estimated employment is up to 1,200 construction jobs and 150 permanent positions. These are the developer maximum build numbers from a December 2025 application, not a committed build. AZBEX | The parcel sits within the roughly 10,000 acre Entrata master plan, entitled in 2023. The developer says it holds a 100 year certificate of assured water supply from the Arizona Department of Water Resources. Land use and zoning already allowed data centers. That is why the special use permit question mattered. AZBEX | Pending, with no county approval or denial on the public record. Entrata's lead land use consultant told the Board of Supervisors on December 1, 2025 that the team had submitted a commercial site plan for AI data center use. Mohave County Board of Supervisors Development Services Director Scott Holtry said that application was in review and that the new special use permit rule would not reach it. Mohave County Board of Supervisors No Planning and Zoning Commission agenda, action agenda, or minutes from January through July 2026 lists the project. Mohave County The build figures therefore remain a developer proposal and not an approved AI data center. |
Pima County
Pima County sold land for the 3.6 billion dollar Project Blue campus in a 3 to 2 vote and gave up no tax revenue to do it. AZPM KOLD The county negotiated job and wage commitments with money damages instead of handing over an abatement, which makes this one of the more instructive AI data center deals in the state. Pima County Project Blue FAQ AZPM
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Project Blue purchase and sale agreement (Beale Infrastructure) | Pima County sold a 290.31 acre parcel at the Southeast Employment and Logistics Center on South Houghton Road, north of the county fairgrounds. The parcel was appraised at 20.8 million dollars. The sale came with a 500,000 dollar earnest payment. No property tax incentive was requested or granted. Pima County Project Blue FAQ AZPM KOLD The county estimated 250 million dollars of tax revenue over ten years. That splits into roughly 1) 97 million dollars to Tucson, 2) 60 million dollars to Pima County, and 3) 93 million dollars to the state. Planned build out is 2.25 million square feet across four buildings by about 2029. AZPM | The Board of Supervisors approved the purchase and sale agreement 3 to 2 on June 17, 2025. AZPM Under the agreement Beale must employ at least 75 full time onsite workers at an average salary of 75,000 dollars. That count is certified twice a year over a two year reporting period. Falling short costs 12,500 dollars per missing position. That is capped at 250,000 dollars per report and 1 million dollars over the reporting period. Pima County Project Blue FAQ AZPM The Tucson city council had rejected the project unanimously on August 6, 2025. KOLD That is why it proceeded on unincorporated county land. Construction began in April 2026 over continuing protest about water and power. AZ Luminaria | Live, with no end date. This was a land sale rather than a term incentive. Pima County posted an April 23, 2026 progress update on Project Blue development. Its 2026 memoranda track the use of the land sale proceeds from January 27, 2026 onward. Pima County administrator memoranda 2026 The county posted its update on closing the land sale on December 24, 2025. It posted its summary of the proceeds on December 29, 2025. Pima County Project Blue records |
| Marana rezoning and the referendum fight | There is no incentive here. Beale Infrastructure also holds a rezoning for an AI data center campus in the town of Marana. Two referendum petitions filed in February 2026 sought to overturn that rezoning. The group behind them asked to withdraw them. The town clerk refused the withdrawal and rejected the petitions. KOLD AZPM H.B. 2873 would have let referendum petitions be withdrawn before a vote. A lobbyist for the developer pushed it. It passed the legislature in late April 2026. Governor Hobbs vetoed it at the end of June 2026. AZ Luminaria H.B. 2873, senate engrossed | This matters because it shows the actual leverage point in Pima County is local land use and the referendum power, not tax policy. Arizona Capitol Times | Dead as legislation. H.B. 2873 appears on the vetoed list in the Governor's June 2026 legislative action update. So the referendum withdrawal rule never became law. Nothing on the state books changed. Governor Katie Hobbs legislative action update |
Pinal County
Pinal is the lower tier county closest to Phoenix, so a project here needs only 25 million dollars of investment rather than 50 million to hit the state threshold. A.R.S. § 41-1519 Arizona Commerce Authority I found no county tax incentive. What Pinal does have is a live zoning fight, and the biggest proposed campus in the state was cut down sharply in May 2026. Phoenix Business Journal KJZZ
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| La Osa Energy Center (Vermaland LLC) | I identified no county tax break. The original Vermaland plan was up to 59 AI data center buildings and two gas fired power plants across more than 3,300 acres of vacant desert. The county planning and zoning commission cleared it in April 2026. KTAR After a wave of opposition letters, counsel for the developer told the Board of Supervisors on May 27, 2026 that the plan was cut. It dropped to 11 AI data center buildings and one gas fired plant. Phoenix Business Journal Sonoran Desert Network | County zoning approval is the whole gate. Nothing in the record shows a negotiated tax agreement. KTAR | Pending. The Pinal County Board of Supervisors did not vote on May 27, 2026. It instead continued the public hearing on the rezoning to August 26, 2026. So there is no final county decision on the AI data center yet. Pinal Central KJZZ |
Yuma County
Three developers have reportedly looked at desert land around Yuma, but as of August 2, 2026 no project, site, or local agreement has been announced. There is nothing to claim here yet. Arizona’s Family
Arkansas exempts a qualified data center from state and local sales and use tax on equipment, construction costs, services, and electricity. Ark. Code Ann. § 26-52-456 Ark. Code Ann. § 26-74-407 A 2025 law cut the entry investment from 500 million dollars to 100 million dollars and opened a second track for multi site campuses at 2 billion dollars. Act 548 of 2025 Kutak Rock There is no state property tax break for an AI data center, so property tax relief happens locally through industrial development bond leases under Ark. Code Ann. § 14-164-704. Kutak Rock on Act 9 bonds Little Rock, Conway, and West Memphis have each signed off on 30 year packages that abate about 65 percent of property tax. Arkansas Democrat Gazette
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Qualified data center sales and use tax exemption | Everything a qualified data center buys to build and run the site comes out from under the Arkansas gross receipts tax and the compensating use tax. That reaches 1) data center equipment, 2) eligible costs including land and buildings and site improvements, 3) services bought to build or operate the facility, and 4) the electricity the facility burns. Act 548 of 2025 The exemption covers local sales and use tax as well as the state layer. Arkansas county and city sales taxes are administered under the state gross receipts act, so they ride on the same base. Ark. Code Ann. 26-74-407 When the legislature wants local tax to survive an exemption it says so, as it did for groceries in 2025. Act 1008 of 2025 The equipment definition is wide. It names servers, routers, cooling systems, water conservation systems, monitoring and security systems, software, modular data centers, and the labor to install and maintain any of it. Ark. Code Ann. § 26-52-456(a)(1) | The owner or operator has to be a qualified firm. It also has to put at least 100 million dollars of qualified investment into the facility within 5 years after construction starts. Act 548 of 2025 Act 548 lowered that floor from 500 million dollars. It also moved the start of the clock from the issuance of a certificate of occupancy to the day construction commences. Kutak Rock Sales Tax Institute The firm also has to pay aggregate annualized compensation of at least 1 million dollars to people working in Arkansas, directly or through its contractors. That floor is measured over the 2 calendar years after the year the facility starts operating. The project needs a positive cost benefit analysis from the Arkansas Economic Development Commission. It also needs an approved financial incentive certificate from the Department of Finance and Administration. The department took over the application from the commission under Act 548. A firm primarily engaged in adding virtual currency transactions to a distributed ledger is shut out. DFA fiscal impact statement on HB 1444 The department has 30 days to grant or deny a completed application. The certificate is revoked if compensation drops below the floor. There is no sunset date. The certificate runs to the qualified firm that owns or operates the facility. The statute says nothing about colocation tenants. I searched the Department of Finance and Administration revenue legal counsel opinions and found no opinion on the point as of August 2, 2026. DFA revenue legal counsel opinions | Active since October 2023 under Act 819 of 2023. It was expanded effective October 1, 2025 by Act 548 of 2025. Kutak Rock The 2026 fiscal session left it untouched. University of Arkansas Division of Agriculture |
| Qualified large data center sales and use tax exemption | Same full state and local sales and use tax exemption, but written for a campus made of two or more nonadjacent sites tied together by fiber. It also covers the gear needed to run that fiber network out to upstream internet peering points. Act 548 of 2025 Spending at a satellite site that could never qualify on its own becomes exempt as part of the combined facility. A firm already certified as a qualified data center can ask the Department of Finance and Administration to recertify it together with new sites as a qualified large data center. Kutak Rock The definition also reaches any addition to or expansion of the facility. Ark. Code Ann. § 26-52-456(a)(7) | The owner or operator has to create a qualified investment of at least 2 billion dollars within 10 years after construction commences. It also has to pay aggregate annualized compensation of at least 3 million dollars, contractors included, to individuals performing services in Arkansas. That payroll floor is measured over the 2 calendar years following the calendar year the facility starts operating. Act 548 of 2025 DFA fiscal impact statement on HB 1444 The project still needs a positive commission cost benefit analysis and department certification. Crypto mining is excluded on the same terms. If the campus misses the 2 billion dollar test the certificate is revoked. But any single site that independently meets the qualified data center requirements, including the 100 million dollar investment, stays eligible and gets certified. The revocation exception is written only for the investment test. On its face a shortfall on the compensation floor revokes the certificate outright. Ark. Code Ann. § 26-52-456(f) | Active. Enacted 2025 and effective October 1, 2025. Act 548 of 2025 Kutak Rock Sales Tax Institute |
| Electricity sales tax exemption for qualified data centers | Electricity used by a qualified data center or a qualified large data center is exempt from state and local sales and use tax. Ark. Code Ann. § 26-52-456(b)(4) Arkansas city and county taxes ride on the same base, so the local layer goes too. Act 1008 of 2025 This sits inside the AI data center exemption statute rather than standing on its own. The equipment definition separately reaches property needed to transform, generate, distribute, store, or manage the electricity that runs the servers. It names substations, generators, uninterruptible energy equipment, conduit, fuel piping and storage, cabling, duct bank, switchboards, batteries, and backup generators. Act 548 of 2025 I found no Arkansas tax on AI data center electricity consumption. The Arkansas Advocate reported in May 2026 that the state’s data center tax breaks include an exemption for the electricity the centers use. Arkansas Advocate | The facility has to hold an approved financial incentive certificate as a qualified data center or a qualified large data center, under the same investment and compensation tests. Act 548 of 2025 | Active since October 2023. Act 819 of 2023 Kutak Rock |
| Act 9 industrial development bonds with payment in lieu of taxes | Arkansas gives no state property tax exemption to an AI data center. That makes this local bond lease the only property tax abatement tool in the state. A city or county issues industrial development revenue bonds, takes title to the project, and leases it back to the company. Arkansas Economic Development Commission bond programs Publicly owned property comes off the tax rolls. The company makes negotiated payments in lieu of taxes instead. Every announced Arkansas AI data center property tax break runs through this structure. Arkansas Democrat Gazette Counsel who work in the area call a payment in lieu of taxes agreement the only allowable property tax abatement in Arkansas. Kutak Rock | Aggregate payments during the initial term of the lease or sale contract have to be not less than 35 percent of the ad valorem taxes that would be due if the property were on the tax rolls. That makes 65 percent the practical ceiling on abatement. State officials can sign off on less. Ark. Code Ann. § 14-164-704 Approval takes a public hearing and local approval. For agreements signed on or after September 1, 2023 the company has to file the agreement and a property description with the county assessor. Local officials have to give school superintendents and county tax officials at least 10 days notice before approving a payment in lieu of taxes deal. Kutak Rock Bloomberg Tax | Active. Arkansas Economic Development Commission |
| Advantage Arkansas, ArkPlus, and Create Rebate job creation incentives | Advantage Arkansas is a state income tax credit based on the payroll of new full time permanent employees. The credit cannot wipe out more than 50 percent of income tax liability in a year. Unused credit carries forward 9 years past the year it was first earned. ArkPlus is a discretionary income tax credit tied to both a minimum investment and a minimum payroll by county tier. Create Rebate is a discretionary annual cash rebate on new payroll. Arkansas Economic Development Commission None of these were built for AI data centers. The headcounts are small. The Little Rock and Conway projects each promise about 50 permanent jobs. That makes the credits modest at best. Arkansas Advocate | For Advantage Arkansas the proposed average hourly wage of the new employees has to be at least 16.75 dollars. Payroll thresholds move by county tier. ArkPlus and Create Rebate thresholds also move by tier. Both need approval from the commission executive director. Arkansas Economic Development Commission An AI data center reaches these programs as a computer related business. That category carries two extra tests. The business has to derive at least 51 percent of its revenue from out of state sales. It also has to pay an average above 125 percent of the lesser of the state or county average hourly wage. Arkansas Economic Development Commission investment incentives Ark. Code Ann. § 15-4-2703(8)(B) | Active. Arkansas Economic Development Commission |
| Tax Back sales and use tax refund | A refund of state and local sales and use taxes paid on building materials, machinery, and equipment for new and expanding eligible businesses. Arkansas Economic Development Commission For an AI data center that does not clear the 100 million dollar bar in Ark. Code Ann. § 26-52-456, this is the closest general program. West Memphis Utilities | The business has to 1) be an eligible business under the Consolidated Incentive Act, 2) invest and create payroll under a financial incentive agreement with the Arkansas Economic Development Commission, and 3) get an endorsement from the local community. Arkansas Economic Development Commission Arkansas Economic Development Commission investment incentives An AI data center qualifies through the computer related business category. That category requires at least 51 percent of revenue from out of state sales. It also requires an average wage above 125 percent of the lesser of the state or county average hourly wage. Arkansas Economic Development Commission investment incentives Ark. Code Ann. § 15-4-2703(8)(B) | Active. Arkansas Economic Development Commission |
| Quick Action Closing Fund | A discretionary deal closing fund the Governor can spend on infrastructure, equipment, or training for major projects. More than 365 million dollars has flowed into it since 2007. Arkansas Advocate In April 2026 lawmakers set aside up to 300 million dollars more from surplus for a West Memphis superproject. Reporting is explicit that the project is advanced manufacturing rather than an AI data center. Talk Business and Politics Action News 5 The House amended the Revenue Stabilization Act to carry the set aside over resistance from members who wanted more disclosure. Arkansas Advocate The fund was created as the Economic Development Incentive Quick Action Closing Fund at Ark. Code Ann. § 19-5-1230. Act 510 of 2007 | Agreements carry custom job creation and average wage targets tested each year. Clawbacks apply if the targets are missed. Awards are discretionary. Arkansas Advocate | Active. Talk Business and Politics |
| Generating Arkansas Jobs Act of 2025 | Not a tax break for AI data centers. This 2025 energy law lets an electric utility recover the cost of new generation through a rider while the plants are still being built. It also relaxes when a certificate of public convenience and necessity is required for a strategic investment. Act 373 of 2025 State officials credit it with drawing AI data centers to Arkansas. Governor Sanders said in October 2025 that it helped bring Google in. Arkansas Advocate Entergy Arkansas has an approved rider under the act. Entergy Arkansas Utilities say the cost of serving very large customers will not land on existing ratepayers. That claim is a live political fight through 2026. Arkansas Advocate | Applies to public utilities seeking cost recovery, not to AI data center operators directly. Act 373 of 2025 Act 373 is codified in the Arkansas Code. Ark. Code Ann. § 23-4-1301 et seq. | Enacted 2025 and in effect. Act 373 of 2025 |
| Arkansas Data Centers Act of 2023 local preemption | Not an incentive. It is routinely confused with the sales tax exemption act. This separate 2023 law regulates the digital asset mining business. It also limits how local governments may restrict those facilities. Act 851 of 2023 Little Rock Mayor Frank Scott Jr. pointed to it in June 2026 as the reason a city cannot ban AI data centers outright. That shapes what a local government can offer or withhold. Arkansas Advocate Arkansas Democrat Gazette Whether it actually reaches conventional AI data centers rather than only crypto mining is an open question. Arkansas Advocate | Applies to local governments and to digital asset mining businesses. It grants nothing to an operator. Act 851 of 2023 | Active, with contested scope. Arkansas Advocate Arkansas Democrat Gazette |
County and local programs
Crittenden County
West Memphis authorized up to 60 billion dollars in industrial development bonds over 30 years so the Google campus can take property tax abatement through a bond lease and payment in lieu of taxes structure. Arkansas Democrat Gazette The city agreed to abate 65 percent of real and personal property tax for 30 years. WREG
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| City of West Memphis industrial development bond and payment in lieu of taxes package for the Google data center | The West Memphis City Council approved a maximum of 60 billion dollars in industrial development revenue bonds over 30 years. That splits into 10 billion dollars for real estate and 50 billion dollars for personal property including computer equipment. Arkansas Democrat Gazette The council approved the package in mid May 2025, including a payment in lieu of taxes arrangement with Groot LLC, the entity acting for Google. WREG, May 19, 2025 The bonds were issued under Act 9 of 1960. Arkansas Democrat Gazette The city clerk document portal is unreachable, so the individual ordinance numbers are not sourced here. The abatement level is 65 percent of real and personal property tax for 30 years. WREG The bond lease takes the property off the tax rolls. It swaps taxes for negotiated payments in lieu of taxes. Ark. Code Ann. § 14-164-704 Google separately funded a 25 million dollar Energy Impact Fund for local energy efficiency and weatherization. That is a community benefit rather than a tax break. Google Arkansas Advocate | Google announced the project on October 2, 2025 at 4 billion dollars through 2027. The state commission put the site at more than 1,000 acres. It will hold an AI data center, office buildings, and a substation. Arkansas Economic Development Commission The Arkansas Advocate put the site at 1,100 acres. The brokerage that sold it recorded 1,178 acres. Arkansas Advocate KATV The state commission described hundreds of operations jobs and thousands of construction jobs. Construction began in October 2025. Arkansas Economic Development Commission State law requires payments in lieu of taxes of at least 35 percent of otherwise due taxes. State officials can approve less. Ark. Code Ann. § 14-164-704 The dollar amount of the annual payment has not been published. The Arkansas Democrat Gazette review of Arkansas AI data center tax breaks on June 27, 2026 did not report one. Arkansas Democrat Gazette | Live. The West Memphis City Council passed the two bond ordinances unanimously in May 2025. Arkansas Democrat Gazette on the council vote The payment in lieu of taxes agreement has since been reached. The abatement runs 30 years from it. Arkansas Democrat Gazette |
Faulkner County
Conway promised an unnamed Fortune 100 company at least a 65 percent property tax abatement for 30 years for a planned 1 billion dollar AI data center on Lollie Road. Arkansas Money and Politics Conway City Council special agenda, April 1, 2025
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| City of Conway property tax abatement for the ForgeLight Ventures data center | A property tax abatement of at least 65 percent for 30 years for a 1 billion dollar, 300,000 square foot AI data center in southwest Conway. The same terms cover any additional data center buildings at the site. The bond structures are written broad and flexible. They set build out and equipping periods of at least 30 years. They cap investment at no more than 10 billion dollars for real property and 50 billion dollars for personal property. Conway City Council special agenda, April 1, 2025 City utility Conway Corp will build out water, wastewater, cooling water, fiber, and medium voltage power for the project. Arkansas Business | Set by a memorandum of understanding the Conway City Council approved in special session on April 1, 2025 with ForgeLight Ventures LLC, acting for an undisclosed end user. Conway City Council special agenda, April 1, 2025 Arkansas Money and Politics and Arkansas Business describe that user as a Fortune 100 company. The Arkansas Advocate calls it a Fortune 500 company. The identity is still undisclosed as of August 2, 2026. Arkansas Money and Politics Arkansas Business Arkansas Advocate The project promises 50 new jobs. It would be the largest capital investment in the history of the city. Lollie Road would have to be relocated. The financing was still under negotiation. No construction timeline was given. Data Center Dynamics During the abatement period the company will pay a high voltage electric franchise fee the city will set by ordinance in cooperation with Entergy Arkansas. Conway City Council special agenda, April 1, 2025 The Arkansas Democrat Gazette reported on June 27, 2026 that Conway city leaders had agreed to the same 65 percent abatement for 30 years. I found no published ordinance or bond document for the project as of July 2026. The Arkansas Advocate confirmed in May 2026 that the project is still set to get a local property tax break. Arkansas Democrat Gazette Arkansas Advocate | The Conway City Council approved it in special session on April 1, 2025 by a vote of 8 to 0. Conway City Council special session minutes, April 1, 2025 It is live now only as a promise. The memorandum binds the city to support the abatement through future legislative and administrative actions rather than granting it. Conway City Council special agenda, April 1, 2025 I found no published bond ordinance for the project as of July 2026. The Arkansas Democrat Gazette reported on June 27, 2026 that Conway city leaders had agreed to the same 65 percent abatement for 30 years. Arkansas Democrat Gazette |
Johnson County
Serverfarm has closed on 135 acres in Clarksville for a planned 8 billion dollar AI data center campus of six buildings north of Interstate 40, next to Johnson Regional Medical Center. Data Center Dynamics KVOM No local tax incentive has been reported for it. State Representative Aaron Pilkington said in November 2025 that the project will generate a significant property tax windfall for the city, which points away from an abatement, and no bond or payment in lieu of taxes action has been reported as of August 2, 2026. Arkansas Democrat Gazette
Pulaski County
Little Rock approved a 65 percent property tax abatement for 30 years plus deep franchise fee cuts for the Google Port of Little Rock AI data center. Little Rock memorandum of understanding Arkansas Democrat Gazette The county is the center of the state backlash. A yearlong construction moratorium appeared to pass on May 26, 2026 Arkansas Advocate but a review of the roll call two days later found it had failed, and no moratorium is in force. Arkansas Advocate Little Rock adopted AI data center zoning rules on Tuesday June 2, 2026. Arkansas Democrat Gazette Arkansas Advocate On July 14, 2026 the quorum court committee passed over the county proposal and sent Justice Dianne Curry ordinance 26-I-52 to the full court. KATV The full court voted it down on July 28, 2026. KATV, July 28, 2026 A second project by AVAIO Digital near Wrightsville was reported on July 13, 2026 to be seeking its own tax break, and none has been approved as of August 2, 2026. Arkansas Democrat Gazette Arkansas Times
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| City of Little Rock property tax abatement for the Google Port of Little Rock data center | At least a 65 percent net real and personal property tax abatement runs for 30 years. It covers the AI data center, its ancillary buildings, and any additional data center buildings. It is delivered through industrial development bond structures sized at no less than 10 billion dollars for real property and 50 billion dollars for personal property. Little Rock memorandum of understanding In exchange the company pays the city an annual City Enrichment Investment of 300,000 dollars. That payment rises by 200,000 dollars for each additional data center and by 2 percent every 5 years. The chamber of commerce estimated the site would otherwise generate more than 5 million dollars a year in new property tax and fees at a 1 billion dollar valuation. Arkansas Democrat Gazette | Set by a memorandum of understanding between the city and Willowbend Capital LLC, the entity acting for Google. The city Board of Directors approved it in special session on April 29, 2025. The plan is a 1 billion dollar, 300,000 square foot facility with about 50 jobs. Little Rock memorandum of understanding Arkansas Advocate A payment in lieu of taxes agreement has been reached. The bonds that carry the abatement still have to be issued. Arkansas Democrat Gazette State law requires state sign off for any abatement deeper than 65 percent. Ark. Code Ann. § 14-164-704 State and federal wetlands approvals for the site were still pending in June 2026. Arkansas Advocate Arkansas Democrat Gazette Arkansas Advocate | Live as a city commitment since the Board of Directors adopted the authorizing resolution on April 29, 2025. That resolution binds the city to support the abatement through future legislative and administrative actions. Little Rock memorandum of understanding The bonds that carry the abatement had still not been issued as of June 27, 2026. Arkansas Democrat Gazette |
| City of Little Rock franchise fee and permit fee reductions for the Google project | The city agreed to 1) cut the electric franchise fee to 0.25 percent, 2) cut the water and sewer franchise fees to zero for the domestic and cooling water use of the project, 3) cap standard permit fees at 200,000 dollars per data center, and 4) impose no new fee or assessment that singles out the project. Little Rock memorandum of understanding Arkansas Democrat Gazette | Same April 29, 2025 memorandum of understanding with Willowbend Capital LLC. Little Rock memorandum of understanding The fee changes need special ordinances keyed to load characteristics. They also need cooperation with Entergy Arkansas on a replacement franchise ordinance. Little Rock memorandum of understanding Arkansas Advocate | Live as a city commitment since the Board of Directors adopted the authorizing resolution on April 29, 2025. Little Rock memorandum of understanding The Board approved the franchise fee carve outs in April 2025. Those measures do not name the project. They cut the fees for any power, water, or wastewater user above set volume thresholds. Arkansas Democrat Gazette Little Rock Board of Directors |
California has no tax incentive built for AI data centers. The 2025 bill that would have created one died in the Senate Revenue and Taxation Committee, and no 2026 replacement bill turned up. Mayer Brown Owners fall back on general programs, mainly the partial manufacturing exemption and the California Competes credit, and neither one was written with servers in mind. Cal. Rev. & Tax. Code § 6377.1 California Competes The recent laws run the other way. They tax remotely accessed software starting in 2027 and order a study of how AI data center load shifts costs onto other electricity customers. SB 122, Chapter 23, Statutes of 2026 Holland and Knight SB 57, Chapter 647, Statutes of 2025 Cal. Pub. Util. Code § 913.22
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Manufacturing, Research and Development, and Electric Power Equipment Partial Sales and Use Tax Exemption | The exemption takes off 3.9375 percent, which is the state share of the sales and use tax. A qualified purchase or lease is taxed at 3.3125 percent plus whatever local and district rates apply, instead of the full 7.25 percent state rate plus local and district rates. CDTFA guide for purchasers CDTFA guide for sellers The cap is 200 million dollars of qualifying purchases per taxpayer, or per combined reporting unit, in a calendar year. The exemption reaches purchases made before July 1, 2030. Cal. Rev. & Tax. Code § 6377.1 | The buyer has to be primarily engaged in one of three activities. 1) Manufacturing under NAICS codes 3111 to 3399. 2) Research and development under NAICS 541711 or 541712. 3) Electric power generation, production, storage, or distribution under NAICS 221111 to 221118 or 221122. Cal. Rev. & Tax. Code § 6377.1 An AI data center operator or a colocation provider does not land in any of those codes, so the servers and racks usually do not qualify. Onsite power generation and storage equipment can qualify, and so can a special purpose building that houses it. Both qualify if the owner meets the electric power codes. CDTFA guide for purchasers Cal. Rev. & Tax. Code § 6377.1 The property has to stay in a qualifying use in California for one year or the tax comes back. CDTFA guide for sellers Cal. Rev. & Tax. Code § 6377.1 | Active. It applies to purchases made before July 1, 2030. Cal. Rev. & Tax. Code § 6377.1 |
| California Competes Tax Credit | A negotiated nonrefundable income tax credit that the Governor's Office of Business and Economic Development awards in competitive application rounds. It is open to any business that locates or expands in California. California Competes The baseline allocation runs about 180 million dollars a year. Legislative Analyst's Office A round announced November 17, 2025 handed out 99.9 million dollars in credits to nine companies. One of them, Bright Machines, is scaling a Fremont plant that makes AI data center infrastructure. That project carries a 62.9 million dollar investment and 295 jobs. GO-Biz A second round announced June 22, 2026 went to six companies. Governor's office The credit sits in Cal. Rev. & Tax. Code §§ 17059.2 and 23689. Those are the personal income tax and corporation tax versions of the same credit. Cal. Rev. & Tax. Code § 17059.2 Cal. Rev. & Tax. Code § 23689 | Awards turn on promised new full time jobs, wage levels, and capital investment. All of it is written into a binding five year agreement with the state. The credit is recaptured if the milestones are missed. California Competes Cal. Rev. & Tax. Code § 17059.2 Legislative Analyst's Office An AI data center owner can apply. GO-Biz publishes every awardee. The recent awards in this space went to manufacturers in the AI data center supply chain rather than to the operators of the buildings. GO-Biz Senate Bill 122 separately caps how much of the credit a business can use in one year. SB 122, Chapter 23, Statutes of 2026 Ernst and Young | Active. Senate Bill 180, Chapter 85, Statutes of 2026, signed July 13, 2026, extended the program through fiscal year 2032-33 and to taxable years beginning before January 1, 2035. SB 180 Governor's office Cal. Rev. & Tax. Code § 17059.2 |
| CAEATFA Sales and Use Tax Exclusion | A full exclusion from state and local sales and use tax on qualified machinery and equipment. The California Alternative Energy and Advanced Transportation Financing Authority awards it case by case. Cal. Rev. & Tax. Code § 6010.8 The authority can award 100 million dollars of exclusions in a calendar year. Each applicant is capped at 15 million dollars. An applicant can get more if allocation is left over at year end. CAEATFA program FAQ | The applicant has to be a manufacturer whose project does one of three things for more than half the use of the property. 1) Processes recycled feedstock. 2) Uses an advanced manufacturing process. 3) Makes an alternative energy source product or an advanced transportation technology. CAEATFA regulations CAEATFA program FAQ Equipment that merely runs on onsite renewable power can ride along only if it is ancillary and under 10 percent of the qualified property. CAEATFA program FAQ An AI data center owner buying servers does not qualify, so this program reaches supply chain manufacturers rather than the facilities themselves. | Active. Senate Bill 86, Chapter 211, Statutes of 2025, ran the authority to approve projects out to January 1, 2028. SB 86 CDTFA CAEATFA exclusion page |
| Active solar energy system new construction exclusion | Building an active solar energy system does not count as new construction, so the assessor does not add its value to the assessment. The exclusion rides with the property until the next change in ownership. Cal. Rev. & Tax. Code § 73 Letter to Assessors 2024-031 For an AI data center that self supplies with onsite solar, this is the closest thing California has to a property tax break. | The system has to meet the statutory definition of an active solar energy system. It also has to be completed before January 1, 2027. Board of Equalization The Board of Equalization has said that construction starting after January 1, 2026 and not finished before January 1, 2027 cannot qualify. Letter to Assessors 2024-031 Passive systems do not count. Neither does solar used to heat a swimming pool or a hot tub. Board of Equalization | Active but sunsetting. A system has to be completed before January 1, 2027. Board of Equalization Cox Castle |
| Sales tax exemption for utility deliveries | Gas, electricity, and water delivered to consumers through mains, lines, or pipes are exempt from California sales and use tax. So an AI data center pays no sales tax on grid electricity. Cal. Rev. & Tax. Code § 6353 This is not an AI data center program. It applies to every customer in the state. | Nothing beyond delivery through mains, lines, or pipes. Cal. Rev. & Tax. Code § 6353 Many California cities layer a local utility users tax on top of the utility bill. This exemption does nothing about that. The city of Santa Clara is not one of them. Its utility tells customers they are not charged the user tax levied in most PG&E jurisdictions. The city does levy a flat 1.85 dollars a month excise tax tied to sewer availability. Silicon Valley Power Santa Clara City Code Chapter 3.30 | Active. Cal. Rev. & Tax. Code § 6353 |
| Senate Bill 57 data center cost shift assessment | Not an incentive. The law lets the California Public Utilities Commission assess whether investor owned utility costs tied to new AI data center load are shifting costs onto other retail electricity customers. The Commission has to send that assessment to the Legislature and post it publicly on or before January 1, 2027. SB 57, Chapter 647, Statutes of 2025 Senator Padilla Cal. Pub. Util. Code § 913.22 The bill as introduced would have created a data center tariff. It was narrowed to an assessment before it passed. Mayer Brown SB 57 versions, introduced through chaptered | It applies to electrical corporations serving AI data center load. Nothing is asked of the AI data center owners themselves. SB 57, Chapter 647, Statutes of 2025, chaptered text Cal. Pub. Util. Code § 913.22 | Enacted October 11, 2025 as Chapter 647, Statutes of 2025. The assessment is due on or before January 1, 2027. SB 57 status Cal. Pub. Util. Code § 913.22 |
| Senate Bill 122 sales tax on digital products | Not an incentive, a new cost. Starting January 1, 2027 California sales and use tax reaches digital products. That means prewritten software delivered electronically or accessed remotely, including software as a service. SB 122, Chapter 23, Statutes of 2026 Holland and Knight The definition expressly leaves out digital infrastructure. That means infrastructure as a service and platform as a service where the customer runs its own software on the provider's platform. So raw compute and hosting sold by an AI data center operator sits outside the new tax. The packaged software that operator buys to run its own business sits inside it. BDO Holland and Knight The same bill extends the 5 million dollar cap on business tax credits through 2029. Then it sets a permanent cap equal to the greater of 5 million dollars or 70 percent of the taxes imposed, starting in 2030. Ernst and Young | Sales are sourced to the purchaser's California address in the seller's records. Custom software stays exempt. BDO When one retailer sells more than 5 million dollars of digital products to one purchaser in a year, the purchaser self assesses and pays the tax directly. Holland and Knight | Enacted June 29, 2026 as Chapter 23, Statutes of 2026. The tax applies on and after January 1, 2027. SB 122 status Holland and Knight |
County and local programs
Imperial County
This is the site of the largest AI data center proposed in California. The county advanced it in April 2026, then paused it in June 2026 with a moratorium. CalMatters On July 14, 2026 the Board of Supervisors voted unanimously to extend that moratorium by 10 months and 15 days, out to June 2027, and seated a Data Center Advisory Committee to write new policy. Calexico Chronicle inewsource There is no county incentive program attached to any of it.
Los Angeles County
No county or city AI data center incentive turned up here. What the county produced instead was the first outright voter ban on data centers in the country, when Monterey Park approved Measure NDC on June 2, 2026. Ballotpedia Spectrum News 1 City of Monterey Park
Riverside County
Two desert cities moved against AI data centers in 2026 rather than toward incentives. Coachella adopted a 45 day moratorium in June 2026 and extended it on July 8, 2026 by 10 months and 15 days while it drafts a permanent ban. KVCR Indio adopted its own 45 day moratorium on June 3, 2026. City of Indio KESQ No county AI data center incentive turned up.
Sacramento County
Rancho Cordova hosts a long running AI data center cluster and offers small discretionary city grants for technology employers rather than AI data center tax abatements. City of Rancho Cordova Greater Sacramento The city manager counts 12 AI data centers inside the city. The Sacramento Municipal Utility District was reviewing four AI data center inquiries in July 2026. PBS KVIE Abridged
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| City of Rancho Cordova Jobs and Talent Attraction Program | 10,000 dollars for each qualifying new job, paid over five years and contingent on the job sticking. The job has to be in the city and pay at least 100,000 dollars in W-2 base wages. The city aims it at technology, semiconductor, advanced manufacturing, and research employers. City of Rancho Cordova Sacramento Business Journal Greater Sacramento Economic Council | At least 5 net new jobs. Awards are discretionary, first come first served, and limited by available funding. Jobs moved in from surrounding counties do not count. A recipient generally has to operate in the city for five years or pay the money back. City of Rancho Cordova | Live now. The city still lists the program as open, with no application deadline and no sunset date published. It pays the awards out of the city Community Enhancement and Investment Fund. City of Rancho Cordova business incentives page, captured May 18, 2026 |
| City of Rancho Cordova Business Incentive Program | Fee assistance covers up to 70 percent of eligible city fees. Economic development grants are generally capped around 10,000 dollars. Both are for businesses that locate, expand, or reinvest in the city. Target sectors include technology, artificial intelligence, robotics, and research and development. These sectors can reach AI data center users. But the dollars are small next to what an AI data center build costs. City of Rancho Cordova | Case by case approval, subject to available funding and a showing of clear economic or community benefit. City of Rancho Cordova Under Government Code Section 53083 a local agency has to publish a public report and hold a noticed hearing before it grants an economic development subsidy of 100,000 dollars or more. Cal. Gov. Code § 53083 | Live now. The city still lists the program as open, with no application deadline and no sunset date published. City of Rancho Cordova business incentives page, captured May 18, 2026 |
Santa Clara County
This is one of the largest AI data center clusters on the West Coast, and what draws it is cheap city owned power in the city of Santa Clara plus a San Jose grid deal with PG&E, not tax breaks. Silicon Valley Power City of San José The binding constraint now is electricity rather than tax, because finished buildings sit empty waiting on capacity. Los Angeles Times
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Silicon Valley Power municipal electric rates in the city of Santa Clara | Silicon Valley Power is the city owned utility of the city of Santa Clara. It advertises some of the lowest rates in the state. It serves more than 50 AI data centers. The city counts 55 in operation and three in the pipeline. AI data centers now take about 60 percent of the electricity the utility sells. Silicon Valley Power San Jose Spotlight Silicon Valley Voice, May 2026 This is a structural cost advantage rather than a formal incentive. Rates rose 5 percent in January 2025. San Jose Spotlight The City Council approved another 4 percent increase on December 16, 2025 that took effect in January 2026. The city tied both increases to rising material and construction costs, infrastructure projects, and reserves as the city grows. Silicon Valley Power AI data centers are now the third largest source of city general fund revenue, behind property and sales taxes. Santa Clara Valley Voice | A facility has to sit inside the city of Santa Clara service territory. There is no application, no abatement, and no negotiated tax deal. The city also does not layer a utility users tax on the bill the way most PG&E jurisdictions do. The only excise tax in its revenue code is a flat 1.85 dollars a month tied to sewer availability. Silicon Valley Power Santa Clara City Code Chapter 3.30 Capacity is the real gate. Completed AI data centers in the city have sat unpowered. The utility does not expect to finish its upgrades until 2028. San Jose Spotlight Los Angeles Times | Live now. The rates in force took effect in January 2026. They stay in force until the Santa Clara City Council sets new ones. City of Santa Clara |
| City of San Jose large load support and the PG&E implementation agreement | San Jose gives AI data center developers free concierge style help through its Office of Economic Development. It signed an implementation agreement with PG&E on July 25, 2025 to speed grid connections for large loads. City of San José Powering San José PG&E is expected to put roughly 2.6 billion dollars into the local grid. Two new LS Power transmission lines are expected to add about 2,000 megawatts of capacity in the area. Mercury News KQED PG&E energized the first large load under the agreement at the Equinix SV12 facility in south San Jose on January 21, 2026. This was the first of a dozen tracked projects. PG&E The package buys speed on permitting and power. It carries no tax relief. | An AI data center in San Jose needs a Special Use Permit heard at the Planning Director's Hearings. Any other large energy use project needs one too. City of San José Grid support runs case by case through the PG&E large load process. That process starts at a proposed load of 2,000 kilowatts. It carries a 25,000 dollar engineering advance invoice that has to be paid before PG&E will even build the planning package. PG&E large load process | Live now. The city program page was still up in May 2026 with named staff for large load projects. Neither the city help nor the PG&E agreement carries an end date. Powering San José, captured May 17, 2026 A change is pending. On May 27, 2026 the Mayor and three council members asked the Rules and Open Government Committee to direct the City Manager to write uniform standards for AI data center projects. Those standards would cover energy use, water use, air quality, and community notice. Data Center Uniform Standards memorandum, May 27, 2026 |
Colorado gives an AI data center nothing that an ordinary business does not also get. Bills to create a dedicated break died in 2024, in 2025, and again in 2026. SB24-085 SB25-280 HB26-1030 That leaves general tools, mainly the enterprise zone investment credit under C.R.S. 39-30-104, the job growth income tax credit under C.R.S. 39-22-531, and a negotiated county agreement on business personal property tax under C.R.S. 30-11-123. Local government moved the other way in 2026. Denver, Jefferson, Larimer, and Boulder counties all adopted moratoriums in the first half of the year, and Longmont banned hyperscale facilities outright. Broadband Breakfast Longmont Times-Call
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Enterprise Zone Investment Tax Credit | A state income tax credit worth 3 percent of what a business invests in qualified business personal property. Servers and other AI data center equipment can count. Credit you cannot use in the year you earn it carries forward for up to 14 years. OEDIT Colorado Enterprise Zone Tax Guide The credit sits in the state Urban and Rural Enterprise Zone Act. C.R.S. 39-30-104 C.R.S. 39-30-101 | The site has to sit inside one of the 16 designated Colorado enterprise zones. The property also has to be used only inside the zone for the first year you own it. Statute caps how much of the credit you can actually use in any single tax year. Software generally does not qualify. That is a real problem for an AI data center. Used equipment counts only up to 150,000 dollars a year. None of this was written with AI data centers in mind. So a server hall claims it the same way a machine shop does. OEDIT Colorado Enterprise Zone Tax Guide | Active. OEDIT |
| Job Growth Incentive Tax Credit | A performance based state income tax credit worth up to 50 percent of the federal FICA tax the employer pays on each net new job. The credit counts for every calendar year of an eight year credit period. Unused credit is not refundable, but it carries forward for 10 years. OEDIT Colorado legislative tax expenditure evaluation | The Colorado Economic Development Commission has to approve the project before the company 1) signs a lease, 2) hires anyone, or 3) announces anything. The company also has to show a genuine multi state or international site competition that it could plausibly lose. Then it needs at least 20 net new jobs, or at least 5 in an enhanced rural enterprise zone. Each job has to pay an average annual wage of at least 100 percent of the county average. And each has to be held for at least a year before the credits vest. An AI data center rarely clears the 20 job bar, because these buildings run lean once construction ends. But nothing stops it from applying. OEDIT Colorado tax expenditure compilation report The credit is created by statute. C.R.S. 39-22-531 | Active. OEDIT Colorado extended the program in 2026. The commission can now approve new credit awards through state income tax year 2034. HB26-1014 |
| Industrial use energy sales tax exemption | State sales and use tax does not apply to electricity, coal, gas, fuel oil, steam, coke, or nuclear fuel used in processing, manufacturing, mining, refining, and other listed industrial uses. C.R.S. 39-26-102(21) The state auditor put Colorado industrial energy spending at about 3.5 billion dollars in 2021. That came to roughly 104 million dollars of state sales tax never collected. Colorado Office of the State Auditor Power is the largest running cost at an AI data center. So this would be the most valuable break in the state if it reached one. | This is a general industrial exemption and not an AI data center program. The Department of Revenue has already drawn the line by rule. Its regulation defines industrial uses as the use of energy in a continuing business activity of manufacturing or producing tangible personal property, or producing the services taxed under C.R.S. 39-26-104(1)(c) and (d.1). 1 CCR 201-4, Rule 39-26-102(21)(3)(c) Those two subsections are telephone and telegraph service and gas and electric service. C.R.S. 39-26-104 Running servers is none of those on the face of the rule. I searched for a department ruling, FYI publication, or guidance applying the exemption to an AI data center. I found none as of August 2, 2026. So an operator that wants to claim it should get a private letter ruling first. | Active as a general exemption. But the department rule defining industrial uses does not appear to reach an AI data center. 1 CCR 201-4, Rule 39-26-102(21)(3)(c) |
| County business personal property tax incentive agreements | State law lets any county negotiate an annual incentive payment or credit with a taxpayer that establishes or expands a business facility in the county. The payment cannot exceed the county taxes levied that year on the taxable personal property at the facility. So the ceiling is the whole county share and nothing beyond it. An agreement made on or after August 6, 2014 may not run longer than 35 years. C.R.S. 30-11-123 Servers and cooling equipment are business personal property. So in a state with no sales tax break, this is the main property tax lever an AI data center has. | Every deal is negotiated with the individual county. Each one is capped each year at the county tax actually levied on that facility's personal property. Business facility is defined by cross reference to C.R.S. 39-30-105.1(6)(b). Agreements aimed at keeping an existing facility from leaving carry their own separate limits under the same section. C.R.S. 30-11-123 FindLaw | Active. C.R.S. 30-11-123 |
County and local programs
Arapahoe County
Home to the QTS Aurora campus, the largest AI data center under construction in Colorado. Aurora gave QTS a capped rebate of city sales and use taxes, and unlike its Front Range neighbors it has not adopted a moratorium. The QTS site paid 4.55 million dollars in property taxes this year according to property records the city pointed to. Aurora Sentinel That posture may not hold. A council member raised the idea of a pause on July 17, 2026. Denver Business Journal
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Aurora QTS sales and use tax rebate agreement | Aurora approved a rebate of between 40 and 60 percent of the eligible city sales and use taxes QTS pays on qualified equipment and construction materials at the campus at 1160 N Gun Club Rd. The rebate is capped at roughly 19 million dollars. The Aurora Sentinel reported the range and the cap, crediting 9News. Aurora has not posted the agreement itself, so treat the cap as approximate rather than exact. Aurora Sentinel | QTS has to pay Aurora sales and use tax on qualified equipment and construction materials. Then it claims the rebate under its own negotiated agreement with the city. Aurora issues partial sales and use tax rebates of this kind case by case, not under a published formula. So there is no standing program another AI data center can simply apply to. Aurora Economic Development Council | Active. The Aurora City Council approved the sales and use tax rebate agreement with QTS on April 24, 2023. 9NEWS Aurora paid QTS a first rebate of 797,735 dollars and 22 cents in August 2025, against a cap of 19,088,438 dollars. 9NEWS I found no record that the city has amended, suspended, or ended the agreement as of August 2026. Aurora still has not posted the agreement itself. Local reporting in mid 2026 still put the rebate at 40 to 60 percent with a cap near 19 million dollars. Sentinel Colorado |
Boulder County
The county commissioners enacted a six month moratorium on accepting data center and detention center applications in unincorporated Boulder County effective June 2, 2026. Boulder County Inside the county, Longmont went further and banned hyperscale facilities on a 6 to 1 vote, capping any AI data center at 5 percent of Platte River Power Authority nameplate grid capacity or 100 megawatts, whichever is lower. Longmont Times-Call No incentives are on offer anywhere in the county.
Denver County
Denver negotiated a rebate of half the sales and use taxes tied to the CoreSite project. The rebate was worth up to 9 million dollars. Council members raised water and energy objections, and CoreSite withdrew the request on October 30, 2024. The rebate never came to a vote. Denver Post In May 2026 the council passed a one year moratorium on new AI data centers, and several members apologized for having let the CoreSite project through at all. Denver City Council File 26-0431 Denverite 9NEWS
El Paso County
The friendliest large county in Colorado for an AI data center. The county credits back its own share of business personal property tax for every business. El Paso County Colorado Springs pays back part of the city share for qualifying employers. City of Colorado Springs And while Front Range neighbors were adopting moratoriums, the city approved the roughly 50 megawatt Project Taurus at a former Intel plant in June 2026. DatacenterDynamics KKTV That approval is under appeal. Five resident appeals cleared the city filing requirements and the City Planning Commission set a hearing for July 23, 2026. Colorado Springs Gazette KRDO Novva Data Centers separately bought a 37 acre campus in Colorado Springs and says it will spend more than 200 million dollars taking it from 6 megawatts to 30. DatacenterDynamics
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| El Paso County business personal property tax credit | Since 2000 the county has credited back its share of business personal property taxes for every business in the county. It appears automatically as a tax rate reduction or credit on the property tax statement from the El Paso County Treasurer. So an AI data center effectively does not carry the county portion of tax on its servers and equipment. El Paso County | No application, no job count, no investment floor. Every business with taxable personal property in the county receives it. The county describes the credit as covering the county share. It does not publish a percentage. So confirm the current figure with the assessor before modeling it. El Paso County El Paso County Assessor One caution on local marketing. This credit covers the county share only. Colorado Springs runs a separate program that returns just part of the city share. So any claim that business personal property tax simply is not collected here overstates what the two programs do. City of Colorado Springs | Live now with no published end date. The county still lists the credit among its current business programs. It says every business in the county receives it. El Paso County business programs |
| City of Colorado Springs business personal property tax incentive | Colorado Springs pays back either 50 percent or 90 percent of the city portion of business personal property taxes paid. Which rate applies depends on how many new jobs the project creates and how much it invests. Standard agreements run four years. At least 100 new jobs supports a 10 year agreement. A company that creates over 500 jobs and invests over 75 million dollars can extend a 10 year agreement by five more years, to a maximum of 15 years. City of Colorado Springs | Open to primary employers. That means a business that earns at least 50 percent of its gross annual income from sales of products or services outside El Paso County. The company has to create at least 10 new jobs. It also has to hold more than 1 million dollars in business personal property value. Then it requests the incentive every year under a current agreement. It also supplies its county business personal property tax statements. The first payment usually arrives about two years after the agreement is executed. A colocation AI data center clears the primary employer test easily. It clears the job test with difficulty. City of Colorado Springs | Live now with no published end date. The city still lists a business personal property tax credit among the incentives it offers. City of Colorado Springs services and incentives One catch before you model it. For taxes payable in 2026, the City Council granted a credit equal to 100 percent of the city mill levy on all taxable business personal property inside the city. So there is no city business personal property tax left for this program to pay back that year. Colorado Springs Ordinance No. 25-85 |
Jefferson County
The county commissioners issued a 10 month moratorium on AI data centers on May 19, 2026, which runs into March 2027. It carves out land already zoned for data centers through a Planned Development so long as the facility sits at least 1,500 feet from any dwelling. No AI data center incentive has been offered here. Jefferson County 9NEWS
Larimer County
Unincorporated Larimer County has had a moratorium on new AI data center applications since January 27, 2026, extended on February 9, 2026 to run through August 25, 2026 while the county writes land use rules. The county reports no site specific applications on file. Larimer County I found no incentive aimed at an AI data center. The county's general policy is to rebate up to 50 percent of personal property taxes for up to five years for a qualifying large capital investment. Larimer County incentives
Connecticut signs 20 or 30 year agreements that wipe out state sales and use tax and local property tax for a qualified data center that invests at least 50 million dollars in a designated zone or at least 200 million dollars elsewhere. Conn. Gen. Stat. § 32-286(c) Only Cigna has actually used the program since 2021. Governing A 2026 bill to shut the door on new applicants died in the Finance Committee, so the incentives stay open as of July 2026. CT SB 245 bill history CT SB 245 raised bill text
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Qualified data center sales and use tax exemption | A qualified data center gets a full exemption from Connecticut sales and use taxes under chapter 219. The exemption covers 1) its equipment, 2) the services listed in section 12-407, and 3) all the electricity it uses. It runs for the life of the data center's agreement with the Department of Economic and Community Development. Conn. Gen. Stat. § 32-286(d) The term is 20 years at the base investment level and 30 years at the higher one. Owners, operators, and colocation tenants can all apply. Conn. Gen. Stat. § 32-286(b), (c) The Department of Revenue Services issues a certificate. The AI data center and its contractors and subcontractors hand it to sellers. Those sellers are entitled to rely on it. Conn. Gen. Stat. § 32-286(d)(1) The only user so far is Cigna. It reported more than 863 million dollars invested between 2023 and 2025. It also reported about 17 million dollars in tax rebates while creating five jobs. Governing The program comes from House Bill 6514, Public Act 21-1 of 2021. Public Act 21-1, House Bill 6514 The Department of Economic and Community Development runs it through its Office of Data Infrastructure Administration and Security. Connecticut DECD Office of Data Infrastructure Administration and Security Governor Lamont cooled on the incentive in 2026. In his State of the State address he told the legislature that Connecticut told developers to slow down new AI data centers. The exception is for developers that add generation as well. CT Insider The exemption survived the 2026 session anyway, because two bills both died without passing. One was Senate Bill 245, which would have eliminated the data center tax incentives. The other was House Bill 5469, which would have set rules for AI data centers next to power plants. Connecticut Public | For a 20 year term, invest at least 50 million dollars within five years if the site sits in a state enterprise zone or a federal qualified opportunity zone. Anywhere else the threshold is at least 200 million dollars. To stretch the term to 30 years, the thresholds rise to 200 million dollars in a zone or 400 million dollars elsewhere. Conn. Gen. Stat. § 32-286(c)(1), (3) No developer or owner may start construction until it has signed a negotiated host municipality fee agreement with the town. Conn. Gen. Stat. § 32-286(e)(4) The agreement also carries an annual fee. The commissioner sets it each year, capped at fifty thousand dollars. It is payable through the five year qualifying period, or until the investment target is met, whichever comes first. Conn. Gen. Stat. § 32-286(c)(2)(C) The act sets no job creation or wage requirement. Conn. Gen. Stat. § 32-286(c)(1) Shipman and Goodwin AdvanceCT | Active. |
| Qualified data center property tax exemption with host municipality fee | Exemption from local property tax under chapter 203 covers the real property, buildings, and structures at a qualified data center. It also covers the enterprise information technology equipment the data center uses. The exemption runs the full 20 or 30 year term. Conn. Gen. Stat. § 32-286(e)(1) Shipman and Goodwin The exemption also picks up buildings and equipment added later, even if nobody contemplated them when the agreement was signed. Conn. Gen. Stat. § 32-286(e)(2) The town collects negotiated annual payments instead, under a host municipality fee agreement that works like a payment in lieu of taxes. Conn. Gen. Stat. § 32-286(e)(4) Shipman and Goodwin Without one, an AI data center pays full Connecticut tax on business personal property such as servers. That is why Windsor described the Cigna spending as 286 million dollars of otherwise taxable personal property. Hartford Business Journal | Same investment thresholds and same five year window as the sales and use tax exemption. Conn. Gen. Stat. § 32-286(c) The owner needs a separate host municipality fee agreement for every additional facility it acquires. If the site straddles two towns, it needs one with each. Conn. Gen. Stat. § 32-286(e)(4)(A) If the town's legislative body finds the fee agreement is not being met, the AI data center has 180 days to cure. If it does not cure, the agreement terminates. Every dollar of exempted property tax comes due as a charge on the land. Conn. Gen. Stat. § 32-286(e)(5), (6) Towns write their own fee terms and they vary a lot. Windsor structured its Cigna agreement with no reduction in local tax revenue. Hartford Business Journal Groton, Waterford, and Killingly all negotiated large fixed annual payments instead. Groton host municipality fee agreement Waterford host municipality fee agreement Killingly host municipality fee agreement The Department of Economic and Community Development says the town fee agreement has to be in place before the capital project begins. The department administers House Bill 6514, Public Act 21-1 of 2021 through its Office of Data Infrastructure Administration and Security. Connecticut DECD Office of Data Infrastructure Administration and Security Public Act 21-1, House Bill 6514 Only one company has cleared all of these steps since 2021. Governing | Active. |
| Financial transactions tax exemption for qualified data centers | A qualified data center with a state agreement is shielded from any financial transactions tax or fee Connecticut might later impose. That covers trades of stocks, bonds, derivatives, and other financial products. The shield runs 30 years from the date the commissioner determines construction or renovation is finished. Conn. Gen. Stat. § 32-286(c)(4) Server Country Connecticut policy summary Connecticut imposes no such tax today. OLR analysis of HB 6514 The exemption is written against a tax the state might impose in the future. Shipman and Goodwin AdvanceCT | This one is stricter than the other two. It reaches only a qualified data center that hits the higher investment figures. That means 200 million dollars in an enterprise zone or a federal qualified opportunity zone, or 400 million dollars elsewhere. This is the same test that stretches the term to 30 years. Operators, affiliates, and colocation tenants of that data center are covered too. Conn. Gen. Stat. § 32-286(c)(3), (4) The state agreement and the host municipality fee agreement are still required. Conn. Gen. Stat. § 32-286(b), (e)(4) | Active. |
County and local programs
Fairfield County
Trumbull authorized a host municipality fee agreement for a 200 million dollar upgrade of the AI data center it already has, and residents are now pushing back hard. Westfair Trumbull First Selectman statement
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Trumbull data center qualified investment plan at 80 Merritt Boulevard | Aphorio Carter Critical Infrastructure Fund bought the former Digital Realty colocation facility for 10 million dollars in 2024. The 227,552 square foot site has 15 megawatts of capacity and was originally built for Nasdaq. Data Center Dynamics Baxtel Its investment vehicle AC Trumbull LLC and redeveloper CogNOVUM plan a 200 million dollar rebuild into a modern artificial intelligence and cloud computing facility. At that investment level the project buys a 20 year state exemption rather than a 30 year one. Westfair Conn. Gen. Stat. § 32-286(c) Aphorio Carter has also partnered with Norwalk based 365 Data Centers. The company says it is evaluating upgrades at Trumbull for high density artificial intelligence workloads. CT Insider Hartford Business Journal | To claim the state exemptions the owner must apply to the Department of Economic and Community Development and sign a host municipality fee agreement with Trumbull first. Conn. Gen. Stat. § 32-286(b), (e)(4) Trumbull's Rules and Research Committee cleared that hurdle in the fall of 2025. Its resolution authorized First Selectman Vicki Tesoro to enter the agreement with AC Trumbull LLC and CogNOVUM. Westfair I could not find the executed agreement posted by the town as of August 2, 2026. More than 1,200 residents have since petitioned for a joint Town Council and Planning and Zoning meeting and a one year moratorium. Tesoro said on July 10, 2026 that she is gathering information before she schedules a public meeting. Trumbull First Selectman statement Westfair | Pending. The Trumbull Town Council Rules and Research Committee adopted Resolution TC30-170 on September 29, 2025 by unanimous consent. The resolution authorized the First Selectman to sign the host municipality fee agreement with AC Trumbull LLC. Trumbull Rules and Research Committee minutes, September 29, 2025 The First Selectman said on July 10, 2026 that she was still meeting with the property owners and gathering information. She added that a public meeting would be premature. Trumbull First Selectman statement, July 10, 2026 |
Hartford County
Windsor approved the local host agreement that made Cigna the only company so far to use the state qualified data center tax program. Governing Hartford Business Journal
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Windsor host municipality agreement for the Cigna data center | The agreement cleared the way for Cigna to join the state program for a 386 million dollar renovation of its Windsor AI data center. That total covered about 100 million dollars in software and 286 million dollars in taxable personal property over five years. The town structured the deal with no reduction in local tax revenue. Hartford Business Journal Through fiscal 2025 Cigna reported more than 863 million dollars invested. It also reported about 17 million dollars in state tax rebates while adding five jobs. Governing Connecticut has an estimated 50 plus small and mid size data centers. It still has no hyperscale AI data center. CT Insider | State law bars a developer or owner from starting construction on a qualified data center until it has signed a negotiated host municipality fee agreement with the town. Conn. Gen. Stat. § 32-286(e)(4) The Windsor Town Council endorsed the Cigna agreement unanimously on June 20, 2022. Becker's Payer | Active. Cigna was drawing rebates under the state program on investment made between 2023 and 2025. It was still the only company using the Connecticut data center incentive when Governing reviewed the program on April 1, 2026. Governing |
Litchfield County
Morris passed a two year moratorium on AI data centers and battery storage in May 2026 to protect its farmland and rural character, so there is no local incentive here and no route to the state program while the ban runs. Morris moratorium CT Post Morris planner memo, June 2026
New Haven County
The West Haven City Council unanimously approved a one year moratorium on new AI data centers in 2026, New Haven Register and New Haven is weighing a twelve month pause so it can write zoning rules first. Hartford Business Journal Neither offers a local incentive.
New London County
Groton and Waterford both signed host fee agreements early, then closed the door. Town of Groton data center notice Groton capped AI data centers at 12,500 square feet Data Center Dynamics and the Waterford agreement gave NE Edge until March 2026 to obtain building permits. Baxtel It terminated on a default that month. CT Mirror Norwich still markets its municipal utility to developers, CT Insider and East Lyme formed a subcommittee in July 2026 to weigh a moratorium or a ban. CT Examiner WFSB
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Groton qualified data center host municipality fee agreement with Gotspace | Groton signed a host municipality fee agreement with Gotspace Data Partners LLC effective July 1, 2021. It covers parcels on Gold Star Highway, Paulson Road, and North Road. The negotiated annual fee is 1) 500,000 dollars per building under 16 megawatts of capacity, 2) 1 million dollars for 16 to 32 megawatts, and 3) 1.5 million dollars above 32 megawatts. Each year the fee rises by the greater of 2 percent or the Northeast consumer price index. The index increase is capped at 3 percent. Before a building opens the developer owes preliminary payments equal to the prior property tax assessment. Those payments rise to 150 percent of that assessment once the first building permit issues. Groton host municipality fee agreement | The agreement runs 30 years per building for a qualified investment of at least 400 million dollars. It runs 20 years for at least 200 million dollars. It terminates if the state agreement ends or the investment is not made within five years. Groton host municipality fee agreement It is now effectively dead. Groton imposed a one year moratorium on data centers over 5,000 square feet in June 2022. Data Center Dynamics In June 2023 its Planning and Zoning Commission voted unanimously to allow data centers only under 12,500 square feet. That rules out any project large enough to qualify for the state program. Data Center Dynamics CT Examiner | Signed and still listed by the town, but no longer usable. Groton says it has entered into a host municipality fee agreement to allow qualified data centers in two small areas of town. Town of Groton data center notice Since June 2023 Groton zoning has capped data centers at 12,500 square feet. That is far below what any qualified AI data center would need. Nothing has been built under the agreement. Data Center Dynamics |
| Waterford host municipality fee agreement with NE Edge | First Selectman Rob Brule signed a host fee agreement with NE Edge LLC on March 17, 2023 for two AI data centers on the Millstone nuclear station property. Dominion Energy Nuclear Connecticut owns that property. The agreement conditioned the fee obligation on NE Edge entering a binding power purchase agreement with Dominion Energy to serve the two AI data centers. That is a supply contract with the plant owner rather than a direct feed from the plant. Waterford host municipality fee agreement Data Center Dynamics The first building carried a host municipality fee of 3.5 million dollars a year for 30 years, rising 2 percent annually. It also owed a 10 million dollar payment 30 days after its building permit. It owed five further payments of 6 million dollars at the fifth, tenth, fifteenth, twentieth, and twenty fifth anniversaries of its certificate of occupancy. The second building carried 1,312,500 dollars a year on the same 2 percent escalator. It also owed 3.75 million dollars at permit. It owed five payments of 2.25 million dollars on the same anniversaries. Waterford host municipality fee agreement | The project needed Connecticut Siting Council and state agency approvals. The Siting Council denied Dominion Energy a key boundary petition in January 2024. CT Mirror CT Mirror, January 19, 2024 The agreement gave NE Edge 36 months from the March 17, 2023 execution date to apply for a building permit for the first data center. The second data center had 60 months. Both clocks paused during any appeal of the permitting, running again 30 days after the appeal ended. The agreement terminated immediately if NE Edge missed the deadline. It also died automatically if the state agreement ended. Waterford host municipality fee agreement In April 2025 the Board of Selectmen voted 2 to 1 to let NE Edge assign the agreement to a subsidiary. That left the March 2026 permit deadline where it was. The Day Foundation for Fair Contracting of Connecticut NE Edge never filed a building permit application, so the agreement terminated in March 2026. Brule has said he will not support any data centers coming into town in the future. The Day, March 19, 2026 CT Mirror | Expired in March 2026. NE Edge missed the building permit deadline written into the agreement and fell into default. The agreement expired by its own terms. The Day CT Mirror Concerned Citizens of Waterford and East Lyme |
| Norwich municipal utility capacity for data centers | Norwich runs its own municipal electric utility. It markets that spare capacity plus available land to AI data center developers. Mayor Swarnjit Singh says the city is open to data centers and wants more of them on the tax base. The city has one data center today. CT Insider pinned down that figure in a published correction. The original story had been read as counting fifteen. CT Insider This is a marketing posture and a utility advantage. Governing I found no codified Norwich tax program for AI data centers. | I found no Norwich AI data center incentive ordinance. I found no executed host municipality fee agreement on the public record as of August 2, 2026. CT Insider A developer would still need a Norwich host agreement and a state agreement before it could reach the exemptions. Conn. Gen. Stat. § 32-286(b), (e)(4) | Active as an open posture, with no local AI data center tax incentive behind it. The land use side is now codified. The Norwich City Council adopted a new zoning code on January 20, 2026, effective February 15, 2026. Norwich Zoning Regulations That code lists Data Center as a principal use and routes it through a special permit application. Norwich Zoning Regulations I found no Norwich AI data center incentive ordinance and no executed host municipality fee agreement. Norwich has adopted no AI data center moratorium, unlike three other Connecticut towns. CT Insider Mayor Swarnjit Singh said in reporting published June 30, 2026 that the city is open to these projects. CT Insider |
Windham County
Killingly executed a qualified data center host fee agreement with NE Edge in June 2023 and approved selling town land for a project that was never built. Killingly host municipality fee agreement Data Center Dynamics Killingly Town Council minutes, June 13, 2023 Data Center Dynamics, August 22, 2023
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Killingly qualified data center host municipality fee agreement | Killingly and NE Edge LLC executed a Qualified Data Center Host Municipality Fee Agreement on June 19, 2023. It covers 141 Louisa Viens Drive and 125 Alexander Parkway. Three AI data center buildings were proposed there. The host municipality fee is 3.5 million dollars a year per campus, rising 2.5 percent each year. It is based on a minimum of 500,000 square feet of total building footprint. NE Edge also owed 2.5 million dollars within 30 days of the first building permit. It owed five further payments of 2.5 million dollars at the fifth, tenth, fifteenth, twentieth, and twenty fifth years after the first certificate of occupancy. Killingly host municipality fee agreement Residents voted to authorize the sale of roughly 39 acres of vacant town land at Alexander Parkway to NE Edge. Data Center Dynamics Data Center Dynamics | The agreement runs 30 years if the qualified investment reaches 400 million dollars. It runs 20 years at 200 million dollars. Four things end it immediately. The first two are 1) the state agreement ending and 2) the investment not being made inside five years. The others are 3) NE Edge failing to apply for building permits on time and 4) all three buildings ceasing to be a qualified data center. It can also end by mutual agreement or on an uncured default. Killingly host municipality fee agreement Eligible qualified data center costs are expenditures made on or after July 1, 2021. That tracks the state definition exactly. Conn. Gen. Stat. § 32-286(a)(2) I found no report of an AI data center built on the site. Data Center Dynamics | Live on paper with nothing built. The Killingly Town Council authorized the Town Manager to execute the agreement on June 13, 2023 by unanimous voice vote with one abstention. I found no town notice terminating it since. Killingly Town Council minutes, June 13, 2023 Voters approved the linked sale of the Alexander Parkway land on August 8, 2023. The purchase and sale agreement gave NE Edge two years to close on the property. Data Center Dynamics |
Delaware runs no AI data center incentive program and competes on tax structure instead, with no sales tax, no personal property tax, and a general new facility credit that a data processing business can claim. Choose Delaware 30 Del. C. § 2010 Lincoln Institute Delaware property tax profile In 2026 the state moved hard the other way. The General Assembly passed House Bill 310 to strip that credit from large energy users, plus two more bills that make big AI data centers supply their own power and go first in a blackout. HB 310 HB 445 HS 1 for HB 233 All three were still sitting unsigned when I checked the General Assembly records on August 2, 2026. Spotlight Delaware
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| No sales or use tax | Delaware levies no state or local sales tax. Servers, network gear, cooling equipment, and construction materials are all bought free of sales tax. There is no application, no minimum investment, and no sunset. Choose Delaware Sellers pay a Delaware gross receipts tax on their own receipts instead. That cost can be buried in the price a buyer pays. Division of Revenue gross receipts tax FAQ | None. The treatment is automatic for every buyer, including colocation tenants, because the tax does not exist. Choose Delaware | Active. |
| No personal property tax | Delaware does not tax tangible personal property at the state or local level. Counties, school districts, and towns tax real estate only. The servers and IT gear that make up most of an AI data center's value carry no annual property tax. Lincoln Institute Delaware property tax profile Only the land and the buildings are taxed, at some of the lowest effective rates in the country. Area Development Delaware business taxes Lincoln Institute Delaware property tax profile | None. Personal property is simply not taxed in Delaware. Lincoln Institute Delaware property tax profile | Active. |
| New Business Facility tax credit under the Blue Collar Job Act | The credit is five hundred dollars per new qualified employee plus five hundred dollars for each one hundred thousand dollars of qualified investment. It is claimed against the corporate income tax in the year the facility is placed in service and in up to 9 following years. Each year the credit is capped at 50 percent of liability. A carryforward runs inside the 10 year life of the credit. 30 Del. C. § 2011 Division of Revenue Blue Collar Job Act The figure rises to seven hundred fifty dollars per employee and per one hundred thousand dollars in targeted areas under 30 Del. C. § 2021. It rises to six hundred fifty dollars for brownfield facilities under 30 Del. C. § 2011(l). This is the closest general program an AI data center could use. | The requirements are 1) a qualified activity, 2) at least 5 qualified full time employees, 3) at least two hundred thousand dollars of investment and forty thousand dollars per employee, 4) at least 25 percent Delaware resident employees, and 5) Division of Revenue approval within 36 months of the placed in service date. 30 Del. C. § 2011 Division of Revenue Blue Collar Job Act A business that draws more than 50 percent of its annual gross receipts from computer processing or data preparation or processing services is engaged in a qualified activity. That is the hook an AI data center operator would use. The Division of Revenue lists that same activity on its own program page. 30 Del. C. § 2010(3)e. Division of Revenue Blue Collar Job Act I found no published ruling or memorandum applying that language to an AI data center. The reading rests on the statute and on the agency's own activity list rather than on a decided case. Division of Revenue technical information memorandums Lessees can count 8 times net annual rent as qualified investment. So tenants can qualify. 30 Del. C. § 2010 House Bill 310 would remove the hook for most AI data centers by carving large energy use facilities out of the definition of qualified facility. HB 310 text | Active on the books, but House Bill 310 would exclude most large AI data centers. The Senate adopted Senate Amendment 1 and passed the bill 15 votes to 6 on June 30, 2026. The House concurred in the early hours of July 1, 2026 by 26 to 11. Three members did not vote and one was absent. The General Assembly record still showed the bill as passed rather than signed when I checked it on August 2, 2026. HB 310 bill history HB 310 text Governor Meyer had not said whether he supports the bill as of July 16, 2026. Spotlight Delaware General Assembly roundup |
| Gross receipts license fee reduction for new business facilities | The reduction cuts the gross receipts license fee on receipts attributable to the new facility by 90 percent in months 1 through 12. It steps down 10 points a year to 10 percent in months 97 through 108. The rate is then 5 percent in months 109 through 120. The reduction ends after 120 months. 30 Del. C. § 2012 Division of Revenue Blue Collar Job Act In a targeted area the schedule is far richer. It runs 100 percent for the first 60 months. It steps down to nothing only after 180 months. 30 Del. C. § 2022 | The taxpayer must satisfy the same Blue Collar Job Act qualified activity, employment, and investment tests that support the income tax credit. 30 Del. C. § 2011 30 Del. C. § 2012 Because the reduction runs off the same definition of qualified facility, House Bill 310 would close it to most AI data centers as well. HB 310 text | Active on the books, but House Bill 310 would exclude most large AI data centers. The Senate adopted Senate Amendment 1 and passed the bill 15 votes to 6 on June 30, 2026. The House concurred in the early hours of July 1, 2026 by 26 to 11. Three members did not vote and one was absent. The General Assembly record still showed the bill as passed rather than signed when I checked it on August 2, 2026. HB 310 bill history HB 310 text |
| Public utility tax rebate for new business facilities | The rebate covers 50 percent of the public utility tax on the electricity and gas consumed in operating the qualified facility. It runs for the placed in service year plus the 4 following years. For an expanded facility, only the added volume counts. 30 Del. C. § 5507 The baseline matters because Delaware taxes nonresidential electricity at 4.25 percent of gross receipts. The reduced 2.00 percent rate covers only manufacturing, food processing, and agribusiness, not data processing. 30 Del. C. § 5502 | The corporation must satisfy the Blue Collar Job Act tests for the same facility. The facility must be a qualified facility. Then it claims the rebate with the Division of Revenue. 30 Del. C. § 2011(a) 30 Del. C. § 2010(1) Division of Revenue Blue Collar Job Act House Bill 310 amends that same definition. So if it becomes law, this rebate closes to most AI data centers too. HB 310 text | Active on the books, but House Bill 310 would exclude most large AI data centers. The Senate adopted Senate Amendment 1 and passed the bill 15 votes to 6 on June 30, 2026. The House concurred in the early hours of July 1, 2026 by 26 to 11. Three members did not vote and one was absent. The General Assembly record still showed the bill as passed rather than signed when I checked it on August 2, 2026. HB 310 bill history HB 310 text |
| Delaware Strategic Fund | Discretionary grants and low interest loans for business attraction, retention, and expansion, sized case by case. 29 Del. C. § 8728A Division of Small Business incentives This is the vehicle Delaware would use for a negotiated AI data center deal. I went through the Division of Small Business material and the coverage of Council on Development Finance activity. I found no award to any AI data center project through August 2, 2026. Division of Small Business incentives | Application goes through the Division of Small Business, and public approval comes from the Council on Development Finance. Terms are negotiated project by project. Division of Small Business incentives 29 Del. C. § 8729A | Active. |
| Delaware Site Readiness Fund | Grants, loans, or other economic assistance for construction, renovation, or improvement of infrastructure at commercial and industrial sites. This can cover the pads, utilities, and access work a large project needs. 29 Del. C. § 8711A Division of Small Business incentives The statute ties the money to opportunities that would create a significant number of direct, quality, full time jobs in the state. The Division of Small Business takes applications on a rolling basis until the funding is gone. 29 Del. C. § 8711A Site Readiness Fund I found no announced award to an AI data center project through August 2, 2026. Site Readiness Fund | Application through the Division of Small Business with Council on Development Finance review. The applicant must meet the eligibility criteria in the statute. The applicant must also show a public utility advantage to the citizens of Delaware. 29 Del. C. § 8711A Site Readiness Fund | Active. |
County and local programs
Kent County
Kent County has no AI data center proposal pending. I found no local incentive there. The Levy Court took up zoning ordinance LC26-06 in June 2026, and the Kent County Regional Planning Commission recommended it unanimously on July 9, 2026. The ordinance would 1) allow data centers only in the Limited Industrial and General Industrial districts, 2) cap noise at 55 decibels, with a licensed Delaware engineer's study before and after construction, 3) keep buildings at least 300 feet from residential districts and generators and cooling towers at least 400 feet, 4) limit generator testing to weekdays between 10 in the morning and 4 in the afternoon, and 5) require written confirmation from the water utility that the site has capacity. Sierra Club Delaware Delaware Online The Levy Court held the public hearing on July 21, 2026 and passed the ordinance unanimously. Five amendments were drafted before the vote, so the enacted text may differ from the version described above. Sierra Club Delaware
New Castle County
Nearly every Delaware AI data center proposal sits in New Castle County, which answered with the state's first data center zoning ordinance rather than with incentives. The county council passed Substitute 3 to Ordinance 25-101 on March 10, 2026 with 12 members voting yes and 1 absent, and County Executive Marcus Henry signed it on March 18, 2026. Spotlight Delaware New Castle County signing announcement
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| City of Wilmington real estate tax exemption program | A 5 year abatement of 100 percent of city real estate taxes attributable to qualified improvements on commercial property. Market rate multi family residential and mixed use projects in certain areas get a 10 year version instead. Wilmington City Code § 44-71 Choose Wilmington property tax abatement This is a general redevelopment tool rather than an AI data center program. I found no AI data center proposed inside the city. | New construction or a qualified improvement must raise the assessment above the base assessment. The property must also lie in one of three places 1) the mapped downtown and waterfront area, 2) an urban renewal area, or 3) within one block of a listed commercial corridor. Wilmington City Code § 44-71 Choose Wilmington property tax abatement There is also a citywide route for any commercially zoned property anywhere in the city that generates at least 25 jobs in a qualifying activity. Data processing is one of those activities. Wilmington City Code § 44-71(c)(1)c. 30 Del. C. § 2010(3) | Active now and set to expire on June 30, 2030 under the time limit for eligibility in section 44-71(i). Wilmington Ordinance 19-025 Choose Wilmington property tax abatement The city Department of Finance still takes applications under the program. The program was adopted by Ordinance 19-025 in July 2019. An application must be filed no later than 60 days after New Castle County issues a reassessment notice. City of Wilmington property tax incentive exemption application I found no later ordinance amending or repealing section 44-71. |
Sussex County
I found no AI data center proposal, no county data center ordinance, and no county level incentive in Sussex County. The draw there would be the same statewide structure, meaning no sales tax and no personal property tax, rather than anything local. Choose Delaware Lincoln Institute Delaware property tax profile
I found no AI data center incentive in the District of Columbia at any level of government, and its tax code does more than stay quiet. It writes these facilities out of the one technology tax program the District runs. A business cannot be a Qualified High Technology Company if it earns 51 percent or more of its District gross revenues from operating an electronic equipment facility for data switching, transmission, or telecommunication between computers. The wage credits and the property tax abatement both ride on that status, so both are closed to a colocation or AI data center operator. D.C. Code § 47-1817.01(5)(B)(i)(II) OTR Form FR-399 The zoning code reaches the same result from the other direction. It defines an Electronic Equipment Facility to include a data center, a server farm, and a colocation facility, bars that use outright in the residential zones, and caps how much of a building it may fill everywhere else. 11 DCMR Subtitle B, Subtitle U §§ 203.1, 515.1, 516.1, 801.1
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Qualified High Technology Company wage credit for qualified employees | A credit against the District corporate franchise tax worth 5 percent of the wages paid during the first 24 calendar months of employment to a qualified employee hired after December 31, 2017. The credit is capped at 3,000 dollars per employee per taxable year. D.C. Code § 47-1817.03 The older version of the credit was worth 10 percent of wages and capped at 5,000 dollars per employee. It applies only to taxable years ending on or before December 31, 2019. Unused credit carries forward for 10 years only if it was earned on the wages of a qualified employee hired before October 1, 2019. Both the rate cut and the carryforward cutoff came out of the Downloading Lost Revenues Amendment Act of 2019. The mayor signed it on July 22, 2019 as part of the Fiscal Year 2020 Budget Support Act, bill B23-0209. BDO summary of the 2019 amendment | The claimant has to be a Qualified High Technology Company. That means a for-profit business that 1) leases or owns an office in the District, 2) has 10 or more qualified employees here, 3) earns at least 51 percent of its District gross revenues from a long list of permitted technology activities, and 4) self certifies every year through MyTax.DC.gov. D.C. Code § 47-1817.01 Office of Tax and Revenue QHTC page An AI data center operator is shut out by definition. The statute excludes any business that derives 51 percent or more of its District gross revenues from operating an electronic equipment facility. That facility is one primarily occupied, or intended to be occupied, by electronic and computer equipment providing data switching, transmission, or telecommunication functions between computers both inside and outside the facility. The Office of Tax and Revenue repeats that exclusion word for word in its own filing booklet. D.C. Code § 47-1817.01(5)(B)(i)(II) OTR Form FR-399 A mixed business that runs servers here but earns most of its District revenue from software or hosted services is not automatically caught. The test is a revenue test rather than an activity test. That is an audit fight, not a safe harbor. Self certification does not stop the Office of Tax and Revenue from auditing. The agency may use the cost of performance method to test the revenue split when the books do not show it cleanly. It has issued deficiency notices attacking the 51 percent computation before. D.C. Code § 47-1817.01a(b) OTR Form FR-399 GKG Law on OTR QHTC assessments As of August 2, 2026 I found no published ruling or decided case applying the electronic equipment facility exclusion to a mixed business. | Active, and closed to AI data center operators by the statutory definition. D.C. Code § 47-1817.01(5)(B)(i)(II) |
| Qualified High Technology Company wage and retraining credits for disadvantaged employees | One credit equals 50 percent of the wages paid to a qualified disadvantaged employee during the first 24 calendar months of employment. It is capped at 15,000 dollars per employee per taxable year. D.C. Code § 47-1817.05 A second credit covers tuition, course fees, and approved apprenticeship retraining costs for the same kind of employee. It is capped at 10,000 dollars per employee during the first 18 months of employment. D.C. Code § 47-1817.04 | The claimant has to be a Qualified High Technology Company. The worker has to be a District resident who 1) receives or recently received Temporary Assistance for Needy Families, 2) was released from incarceration within 24 months before hire, or 3) supports a federal Welfare to Work or Work Opportunity credit. D.C. Code § 47-1817.04 Both credits are written as credits against the tax imposed by section 47-1817.06. That section carried the reduced Qualified High Technology Company franchise tax rate. It has been repealed. D.C. Code § 47-1817.06 The repeal came in the QHTC Tax Incentives Modification Amendment Act of 2020, Title VII Subtitle M of the Fiscal Year 2021 Budget Support Act, bill B23-760. OTR Form FR-399 So a taxpayer reading the current code cannot tell what tax these two credits now offset. The electronic equipment facility exclusion applies here too. It puts an AI data center operator outside both credits before that puzzle even matters. D.C. Code § 47-1817.01(5)(B)(i)(II) | On the books, but pointed at a taxing section that no longer exists. D.C. Code § 47-1817.06 |
| Real property tax abatement for commercial space used by a Qualified High Technology Company | Abates for 5 years the real property tax increase attributable to the increase in billed assessed value. The abatement applies either to a new building whose first certificate of occupancy came after December 31, 2000, or to improvements and renovations that adapt or convert an existing building for use by a Qualified High Technology Company. D.C. Code § 47-811.03 A tenant that owes the tax under its lease and pays for the improvements takes the abatement itself. D.C. Code § 47-811.03(b)(2) Office of Tax and Revenue QHTC page If the qualifying lease ends during the abatement period, the abatement survives up to 12 more months. During that time the landlord or tenant makes a good faith effort to relet the space to another Qualified High Technology Company. D.C. Code § 47-811.03(b)(3) | The space has to be eligible premises. The statute defines eligible premises as premises occupied and used as an office, including ancillary uses, or as retail space by a Qualified High Technology Company under a lease. D.C. Code § 47-811.03 A server hall is neither an office nor retail space, so an AI data center use fails this test before anyone reaches the definitional exclusion for electronic equipment facilities. D.C. Code § 47-1817.01(5)(B)(i)(II) The abatement is revoked at once if the premises are leased to a tenant that is not a Qualified High Technology Company. It is claimed by attaching an original tenant affidavit to the real property tax return. D.C. Code § 47-811.03(b)(5) | Active, and a poor fit for an AI data center because the statute covers only office and retail space. D.C. Code § 47-811.03 |
| Qualified High Technology Company sales and use tax exemption for computer hardware and software | Before repeal, a certified Qualified High Technology Company paid no District sales or use tax on computer software and hardware or on visualization and human interface equipment bought for its own operations. Its own qualifying sales were exempt as well. The two exemptions sat in D.C. Code § 47-2001(n)(2)(G) and D.C. Code § 47-2005(31). BDO summary of the 2019 amendment Sales Tax Institute This was the closest the District ever came to an AI data center equipment exemption. I found nothing that replaced it. Aprio | None today. The exemptions ended for purchases made on or after October 1, 2019, under the Downloading Lost Revenues Amendment Act of 2019 in the Fiscal Year 2020 Budget Support Act, bill B23-0209. BDO summary of the 2019 amendment Server purchases now pay the general rate, which is 6 percent. The scheduled step to 7 percent has been pushed back twice. The most recent delay came in the Sales Tax Increase Delay Amendment Act of 2026, Subtitle VII A of the Fiscal Year 2027 Budget Support Act. That act holds the rate at 6 percent through fiscal year 2027 and moves the increase to fiscal year 2028. Office of Revenue Analysis fiscal impact statement, July 6, 2026 substitute Thomson Reuters | Repealed for purchases made on or after October 1, 2019. Sales Tax Institute |
| Qualified High Technology Company reduced 3 percent capital gains rate | Taxed capital gain from the sale or exchange of an investment in a Qualified High Technology Company at 3 percent instead of the regular District rate. The provision lived at D.C. Code § 47-1817.07a. The Qualified High Technology Company Tax Amendment Act of 2024 repealed it effective October 1, 2024. That act was Title VII Subtitle O of the Fiscal Year 2025 Budget Support Act. OTR Form FR-399 Baker Tilly Mayor Bowser proposed reviving the rate in her May 2025 budget. Mayor's office release on the Fiscal Year 2026 Grow DC budget, May 27, 2025 The Council pulled the proposal out of the fiscal year 2026 budget before the first vote. Technical.ly | No longer available. Gain on an investment in a Qualified High Technology Company is taxed at regular District rates. D.C. Code § 47-1817.07a The District economic development agency still advertises the 3 percent rate on its Qualified High Technology Company page as applying to tax years beginning after December 31, 2024. That is wrong, so do not rely on that page. DMPED QHTC page OTR Form FR-399 | Repealed effective October 1, 2024 by the Qualified High Technology Company Tax Amendment Act of 2024. OTR Form FR-399 |
| Federal Property Development Tax Incentive Act of 2026 | A real property tax abatement for a large redevelopment on land the federal government hands off, added to the code as a new section 47-861.05. B26-0661 as introduced, Subtitle D Four disposition structures qualify. They cover land the District takes from the federal government and then ground leases or sells, and land the federal government sells or ground leases straight to a private developer. The mayor proposed a term of up to 20 consecutive tax years for federal dispositions after October 1, 2026. The Council circulated a substitute on July 6, 2026 and passed it on July 7. The substitute cut the term to 15 years and moved the disposition trigger back to January 1, 2026. Those changes widen the pool of eligible sites and shorten the benefit. Office of Revenue Analysis fiscal impact statement, July 6, 2026 substitute Holland and Knight This is not an AI data center program. The subtitle never mentions one. It matters only because it is the largest new District development abatement in years. It is also the one 2026 change that could reach a big technology building on former federal land. | The project needs 200,000 square feet or more of gross floor area. The site must not have been subject to real property tax under D.C. Code § 47-811 or § 47-1005.01 before the disposition. The owner or ground lessee has to sign an agreement with the District. That agreement commits the owner or ground lessee to 1) contract with certified business enterprises for at least 35 percent of the construction and development contract dollar volume, 2) a First Source hiring agreement, and 3) affordability set asides on housing units in the project. B26-0661 as introduced, Subtitle D The mayor also has to find the project one of special merit. The developer has to show that the abatement is necessary for financial feasibility and that the project can finish on time. Office of Revenue Analysis fiscal impact statement, July 6, 2026 substitute Special merit is defined by 1) housing units, 2) neighborhood or regional retail square footage, 3) historic designation, 4) development complexity, or 5) social benefits. An AI data center offers none of those, so a server building would be a hard sell even on a qualifying site. B26-0661 as introduced, Subtitle D | Passed by the Council on July 7, 2026. It awaits mayoral action and congressional review as of August 2, 2026. ArentFox Schiff Office of Revenue Analysis fiscal impact statement, July 6, 2026 substitute |
County and local programs
District of Columbia
Washington is a single county equivalent jurisdiction, so one government sets every tax and there is no separate county layer to negotiate with. The zoning code is the local lever that actually bites. It defines an Electronic Equipment Facility as space used mainly to house, operate, or colocate computer equipment providing data switching, transmission, or telecommunication functions, and says the term includes a data center, a server farm, and a colocation facility. 11 DCMR Subtitle B That use gets three different answers by zone. 1) In the residential zones it may not be approved at all as a utility use. 2) In the mixed use zones it is a matter of right only if it takes no more than 25 percent of the above ground gross floor area or sits below the ground floor. 3) By special exception it still cannot exceed 50 percent of a building, unless a planned unit development approves more. 11 DCMR Subtitle U §§ 203.1, 515.1, 516.1 In the production, distribution, and repair zones the same use is a matter of right until it passes 25 percent of a building. Past that point the building may not sit within 800 feet of an existing or planned Metrorail station, or within 1,250 feet of a river edge. 11 DCMR Subtitle U § 801.1(bb) A planned unit development may push past 50 percent only in the MU-7, MU-8, MU-9, MU-15, and downtown zones, and even then the facility has to sit off the street frontage so retail and office can hold the sidewalk. 11 DCMR Subtitle X § 303.16 A zoning approval for one of these facilities also expires in one year rather than the usual two. 11 DCMR Subtitle Y §§ 702.1, 705.3 The actual footprint is a small downtown interconnection cluster led by CoreSite DC1 at 1275 K Street Northwest and the neighboring DC2 building, and I found no local abatement or negotiated deal for an AI data center. CoreSite DC1 spec sheet
Florida exempts data center property and the electricity used at the facility from sales tax under Fla. Stat. § 212.08(5)(r), but a 2025 law raised the bar to a 100 megawatt critical IT load and 150 million dollars of investment, so only hyperscale campuses qualify. Greenberg Traurig Ryan Counties and cities can grant local property tax exemptions of up to 20 years for an AI data center. Fla. Stat. § 196.1995(5) And a 2026 law makes any customer with a 50 megawatt peak load pay its own full cost of electric service. Ch. 2026-65, Laws of Fla. House companion CS/CS/HB 1007 analysis
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Data center sales and use tax exemption | The exemption takes an AI data center out of the 6 percent state sales tax. It also removes the local option surtaxes that usually add another 1 to 1.5 percent. Greenberg Traurig Data center property is defined broadly. It is any property used exclusively at the facility to construct, outfit, operate, support, power, cool, dehumidify, secure, or protect the data center. Any contiguous dedicated substation counts too. That reaches construction materials, servers, cooling gear, backup power equipment, and the electricity bill. Fla. Stat. § 212.08(5)(r) Fla. Stat. § 212.08(5)(r)1.d. | Three tests must all be met within 5 years of the start of construction. The facility needs 1) a critical IT load of 100 megawatts or higher, 2) at least 1 megawatt of critical IT load dedicated to each individual owner or tenant, and 3) cumulative capital investment of at least 150 million dollars made after July 1, 2017. Greenberg Traurig Ryan Critical IT load counts only power reserved for server equipment. It leaves out cooling, lighting, and common area load. So a campus drawing far more than 100 megawatts in total can still fall short. Fla. Stat. § 212.08(5)(r) The owner first applies on form DR-1214DCP for a temporary certificate. The permanent certificate comes later on form DR-5DCP. That form needs certifications from a licensed professional engineer and a Florida licensed CPA. Fla. Admin. Code R. 12A-1.108 Form DR-5DCP Tenants and contractors buy exempt by showing a copy of the owner certificate plus a signed Certificate of Entitlement. Fla. Admin. Code R. 12A-1.108 The load threshold rose from 15 megawatts on August 1, 2025, with no grandfather clause. An existing smaller facility cannot make the required declaration at its next 5 year review. That means it loses the certificate. The Department of Revenue can then assess the avoided tax within 6 years of the purchase. Greenberg Traurig Florida sales tax practitioner analysis | Active. The Department may not issue a new temporary certificate after June 30, 2037. Ryan Florida Senate summary of HB 7031 The Department has not caught its own paperwork up to the 2025 change. The rule history page for Rule 12A-1.108 still shows June 14, 2022 as the last effective version. The Department has published no tax information publication on the 100 megawatt threshold as of August 2, 2026. Rule 12A-1.108 rule history Florida Department of Revenue tax information publications The statute controls either way. |
| Electricity exemption at qualifying data centers | Electricity used exclusively at a qualifying AI data center is free of sales tax, because power sits inside the statutory definition of data center property. Fla. Stat. § 212.08(5)(r)1.d. For a hyperscale campus this is the single largest recurring piece of the exemption. The rule also covers separately stated electricity charges that an owner passes through to a tenant. Fla. Admin. Code R. 12A-1.108 Florida sales tax practitioner analysis | This is not a separate application. It rides on the same temporary or permanent certificate as the equipment exemption. So the facility still has to clear 1) the 100 megawatt load test, 2) the 150 million dollar investment test, and 3) the 1 megawatt per tenant test. Fla. Admin. Code R. 12A-1.108 Florida Senate summary of HB 7031 A facility that loses its certificate starts paying sales tax on its power bill. That is a recurring cost rather than a one time hit. Greenberg Traurig | Active. Fla. Admin. Code R. 12A-1.108 |
| Economic development ad valorem tax exemption with data center terms | Florida has no statewide property tax exemption for an AI data center. What it has is a local option. A county or a city may exempt up to 100 percent of the assessed value of new improvements to real property. It may also exempt the tangible personal property of a new or expanding business. The statute goes further for this industry. It says all data center equipment for a data center shall be exempt from ad valorem taxation for the term of the approved exemption. It also allows a term of up to 20 years for a data center instead of the ordinary 10. Fla. Stat. § 196.1995(5) Fla. Stat. § 196.1995 | Voters have to approve the granting authority first, in a countywide or citywide referendum. That authority runs out after 10 years. Another referendum can renew it. Each award then needs a local ordinance. In practice it also needs a performance agreement on jobs, wages, and investment. Fla. Stat. § 196.1995 The exemption reaches only taxes levied by the government that granted it. So a county grant does not touch school district or city millage. By statute it never reaches taxes levied to pay bonds. It also never reaches taxes authorized by a vote of the electors under section 9(b) or section 12 of Article VII of the state constitution. Fla. Stat. § 196.1995 | Active. Fla. Stat. § 196.1995 |
| Capital Investment Tax Credit | An annual corporate income tax credit worth 5 percent of eligible capital costs for up to 20 years. The yearly credit is capped at a percentage of the corporate income tax the project itself generates. The cap is 50, 75, or 100 percent, depending on whether cumulative investment reaches 25 million, 50 million, or 100 million dollars. Fla. Stat. § 220.191 | The project has to 1) create at least 100 new Florida jobs, 2) invest at least 25 million dollars, and 3) operate in a designated high impact sector. Fla. Stat. § 220.191 Information technology is one of those sectors, so an AI data center company can apply. Select Florida high impact sectors But the credit is not written for this industry. No public record I read shows an AI data center claiming it. The award requires an agreement with the Department of Commerce and ongoing job verification. Florida Department of Revenue TAA 12C1-004 The credit is also worth very little to a company with no Florida corporate income tax liability. That describes a lot of single purpose project entities. An unused credit generally cannot be carried backward or forward. Only a project with cumulative capital investment of at least 100 million dollars can use leftover credits, in the 21st through 30th years after operations begin. Florida Senate staff analysis of SB 1878 | Active. Fla. Stat. § 220.191 |
| High Impact Performance Incentive grant | A negotiated cash grant to a business certified in a designated high impact sector. Half of the award is paid when the business certifies that operations have begun. The balance is paid once the full employment and capital investment goals are met. Fla. Stat. § 288.108 Select Florida program sheet | Information technology is one of the designated high impact sectors, alongside clean energy, corporate headquarters, financial services, and life sciences. The general track calls for cumulative investment of 50 million dollars and 50 new jobs. A research and development business can qualify at 25 million dollars and 25 jobs. Certification and a written agreement with the state come before any work starts. Select Florida program sheet Florida Commerce incentives page Like the Capital Investment Tax Credit, this is a general tool rather than an AI data center program. Awards are discretionary and depend on annual funding. No AI data center award turned up in the sources I read. | Active. Florida Commerce incentives page |
| Commercial rent tax repeal | Florida repealed its sales tax on commercial real property leases effective October 1, 2025. So an AI data center tenant no longer pays that tax on rent. Occupancy costs in a multi tenant facility drop. Ch. 2025-208, Laws of Fla. The same bill deleted the old carve out in the data center statute that had preserved commercial rent tax. There is no longer a tax to carve out. Florida sales tax practitioner analysis | None. The repeal applies to every commercial lease statewide, AI data center space included, with no application and no threshold. EY Tax News | Enacted 2025, effective October 1, 2025. EY Tax News Greenberg Traurig |
| SB 484 large load cost of service rules | Filed here as a cost rather than a break, because it is a ratepayer protection law that changes the cost picture. A large load customer is any customer with an anticipated monthly peak load of 50 megawatts or more at a single location. The peak is measured as the highest average load over a 15 minute interval. House companion CS/CS/HB 1007 analysis This customer has to take service under a new utility tariff. The tariff is built so that the customer bears its own full cost of service. It also keeps the risk of nonpayment off the general body of ratepayers. Ch. 2026-65, Laws of Fla. Senate bill summary The definition does not require an AI data center on site. So it reaches any large electrical load. A separate defined term, large scale data center, is what the water permitting sections of the same law use. A customer also may not split one large load into several smaller connections to duck the threshold. Senate bill summary | The Senate passed the bill 31 to 6 on March 13, 2026. The Governor approved it on May 7, 2026. It became Chapter 2026-65 on May 8, 2026. It took effect July 1, 2026. CS/CS/SB 484 bill history Governor DeSantis signing release The Public Service Commission has to set minimum large load tariff and service requirements for public electric utilities. Each public utility has to file a complying tariff for Commission approval no later than October 1, 2026. Senate bill summary The law also 1) bars utility service to a large load customer that is a foreign entity of concern, 2) confirms that local governments keep their comprehensive planning and land development authority over these projects, 3) restricts consumptive use water permits for a large scale data center, and 4) orders the Office of Program Policy Analysis and Government Accountability to contract for a study of large scale data center construction and operation. Senate bill summary House companion CS/CS/HB 1007 analysis | Enacted 2026, effective July 1, 2026. CS/CS/SB 484 bill history Spectrum News 13 |
County and local programs
Duval County
Jacksonville and Duval County share one consolidated government. Charter of the City of Jacksonville, section 1.01 Its city owned utility JEA offers electric bill discounts to large new or expanding power users, and the City Council can cut the municipal public service tax in half for a qualifying business. JEA economic development programs Fla. Stat. § 166.231(6) JEA tax exemptions
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| JEA Economic Development Program and Enhanced Economic Development Program | A percentage discount on the demand, energy, and environmental charges of the electric bill. Under the Economic Development Program rider the discount starts at 30 percent in year one and steps down to nothing by year nine. In a targeted area it starts at 35 percent. Under the Enhanced Economic Development Program rider it starts at 45 percent and steps down over twelve years. In a targeted area it starts at 50 percent. A customer at 5 megawatts or more holds the top rate longer than a smaller one. JEA electric tariff riders EDP and EEDP A new customer gets the discount on its whole qualifying load. An existing customer gets it only on load above a 12 month baseline. That baseline is built from billed peak kilowatts and the highest kilowatt hour use in the year before the application. JEA economic development programs | The Economic Development Program rider needs at least 300 kilowatts of new or incremental metered demand at one delivery point. It also needs at least 15 additional full time employees in the service territory. The rider runs six to eight years. The Enhanced rider needs an industry on the Florida target industry list. That list includes information technology. It also needs either 500 kilowatts and 50 new employees or more than 3,000 kilowatts and 15 new employees. JEA electric tariff riders EDP and EEDP Either way the customer signs an electric service agreement on one of the qualifying demand rate schedules. Those schedules are 1) General Service Demand, 2) General Service Demand Time of Day, 3) General Service Large Demand, 4) General Service Large Demand Time of Day, and 5) General Service Large Demand High Load Factor. Enrollment takes 1) an application and approval, 2) an initial verification of load and employees, and 3) updated employment verification every year on the agreement anniversary. JEA economic development programs The discount never touches customer charges, fuel, excess KVAR, penalties, service charges, gross receipts tax, franchise fees, or other taxes. Enrolling rules out other rider programs for the same new load. Shifting load between JEA service points is prohibited. JEA economic development programs Neither rider is available for multi tenant residential or commercial properties. That is a problem for a colocation AI data center that leases space to several tenants. JEA economic development incentive programs Two cautions. The tariff on file says applications under either rider will not be accepted after September 30, 2028. JEA still markets both programs on its website as of August 2, 2026. So confirm availability with the utility before relying on them. JEA electric tariff, Rider EDP sheet 15.0 and Rider EEDP sheet 15.10 JEA electric tariff riders EDP and EEDP JEA economic development programs These are general economic development riders rather than AI data center programs. JEA reserves the right to pull them immediately if a state or federal body mandates electric service discounts. JEA economic development programs | Both riders are live. The JEA electric tariff now on file says applications for either rider will not be accepted after September 30, 2028. Its Rider EDP and Rider EEDP sheets took effect April 1, 2025. JEA electric tariff, Rider EDP sheet 15.0 and Rider EEDP sheet 15.10 |
| City of Jacksonville public service tax exemption | A 50 percent exemption from the municipal public service tax on electricity. State law lets a municipality exempt any amount up to and including the whole tax. The exemption runs to an industrial consumer that uses the electricity directly in a manufacturing, processing, compounding, or production process. The statute ties that process to making items of tangible personal property for sale. So 50 percent is a local choice and not a statutory floor. Fla. Stat. § 166.231(6) | Eligibility turns on the business NAICS code and on the business having a large impact on local employment or other financial activity. The Jacksonville City Council has to approve each exemption. JEA tax exemptions An AI data center would need to confirm its code qualifies and win a council vote before counting on any of this. The statutory limit is worth reading closely. Section 166.231(6) reaches a consumer that uses the power to make items of tangible personal property for sale. An AI data center sells computing capacity rather than goods. I found no Florida authority applying this subsection to a data center, so treat the fit as an open question. Do not mix this up with the separate enterprise zone sales tax exemption on electricity. That exemption ended December 31, 2015. The same JEA page discusses it. JEA tax exemptions | The state authority is live and carries no sunset date. So Jacksonville can still grant the exemption. Fla. Stat. § 166.231(6) Every award still takes a City Council vote. I found no standing Jacksonville ordinance and no current award in the sources I read. So treat this as available in principle rather than an open program you can enroll in. JEA tax exemptions |
Miami-Dade County
Miami-Dade approved a cash job creation award of about 3.6 million dollars for an AI data center through its Targeted Jobs Incentive Fund in December 2024, paid out across ten future fiscal years. Miami-Dade County memorandum South Florida Business Journal
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Targeted Jobs Incentive Fund award for confidential Project Apollo | The Board of County Commissioners approved a resolution designating confidential Project Apollo as a Targeted Jobs Incentive Fund business. The same resolution appropriates up to 3,633,902 dollars from countywide general fund revenues across fiscal years 2029 to 2030 through 2038 to 2039. Miami-Dade County memorandum The county memorandum is dated December 3, 2024. Trade coverage reported approval on December 6, 2024. South Florida Business Journal Trade reporting described the project as a data center of roughly 15 megawatts. Data Center Dynamics The company behind Project Apollo stays hidden on purpose. Miami Today reported before the vote that the legislation does not name the company. It also reported that the name would not be made public at the time of the vote. I found no later report naming it. Miami Today | A Targeted Jobs Incentive Fund company has to agree to 1) create at least 10 new jobs paying above the county average wage, 2) make a capital investment, and 3) sit in a targeted industry. A project in an enterprise zone, a targeted urban area, a brownfield area, or a community development block grant area can pick up a bonus amount. Miami-Dade County memorandum Miami-Dade County business incentives Payments are spread over future fiscal years and tied to verified job creation. So the award is a promise of later cash and not money up front. Miami-Dade County memorandum | Adopted by the Board of County Commissioners on December 3, 2024 as Resolution R-1055-24. It is in effect now. Miami-Dade County legislative matter 242058 |
Nassau County
Nassau went the other way from an incentive. The Board of County Commissioners adopted Ordinance No. 2026-044 on June 8, 2026, a temporary 12 month moratorium on accepting, reviewing, or approving applications tied to AI data center facilities in the unincorporated county. Nassau County data centers page Florida Data Centers
Osceola County
No county AI data center incentive was confirmed here. Osceola offers the ordinary Florida community development district route under chapter 190 for any large project, but the Crossings district that earlier research tied to an AI data center is in fact a residential subdivision. Crossings CDD Series 2024 preliminary offering memorandum
Palm Beach County
Palm Beach offered no AI data center incentive and instead turned down the county biggest proposal. Commissioners voted 5 to 1 on July 16, 2026 to reject Project Tango, a 3.6 million square foot hyperscale campus near Loxahatchee, though an earlier approval for the same Central Park Commerce Center site still allows some data center square footage. Commissioners are weighing a code rewrite and a possible moratorium. WFLX WLRN
Polk County
Polk granted a 90 percent ten year property tax exemption for the Fort Meade hyperscale campus, which is the largest local AI data center tax deal I found in Florida. The Ledger Polk County file 25-1989 The City of Fort Meade separately approved a 20 year development agreement for the same project. FOX 13 Tampa Bay Propmodo
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Economic development ad valorem tax exemption for Fort Meade DC LLC | A 90 percent exemption from county property tax on the assessed value of the project and its qualifying tangible personal property, running 10 years. The Polk County Commission approved the ordinance unanimously on November 4, 2025. Polk County file 25-1989 Outlets put different price tags on the same action. The Ledger called it a 140 million dollar break. The Tampa Bay Business Journal called it a 150 million dollar break. So read the number as a range and not a fixed figure. The Ledger Tampa Bay Business Journal | Granted by county ordinance with a companion performance agreement. The applicant plans 1) roughly 1,925,000 square feet, 2) about 1.2 billion dollars in real property improvements, 3) about 1.64 billion dollars in equipment, and 4) 50 full time jobs averaging about 107,000 dollars a year. Polk County file 25-1989 The corporate applicant appeared in the county agenda as Fort Meade DC LLC with a Bethesda, Maryland address. Local reporting names the developer as Stonebridge, also Maryland based. The end user has never been disclosed, not at the commission meeting and not in the developer emails with the paper. The Ledger LkldNow WUSF | In effect now. The exemption covers the 2029 through 2038 tax years. Daily Ridge |
| City of Fort Meade development agreement for the Fort Meade hyperscale campus | Not a tax break of its own. The Fort Meade City Commission unanimously approved a 20 year development agreement on April 14, 2026. The agreement covers a 2.6 billion dollar campus on about 1,300 acres of former phosphate mine land. That is the land use approval that lets the county exemption attach to a real project. The developer committed 10 million dollars to local infrastructure. FOX 13 Tampa Bay Florida Data Centers | Buildout is described as up to 4.4 million square feet. Power is planned from the Duke Energy Hines complex. LkldNow Florida Data Centers The project still needs a consumptive use permit from the Southwest Florida Water Management District. It drew hours of public opposition at the hearing. FOX 13 Tampa Bay | In effect since April 14, 2026. Construction has not started. As of that approval the developer had not applied for any water use permit. The water management district governing board has to approve the water at a public meeting before the campus can operate. Bay News 9 |
Georgia exempts qualifying AI data center equipment from state and local sales tax through the end of 2031. O.C.G.A. § 48-8-3(68.1) Ga. Comp. R. & Regs. 560-12-2-.117 The General Assembly adjourned on April 3, 2026 without passing any AI data center legislation, so every bill that tried to shrink or kill the break died. Georgia Watch The state offers no property tax break of its own, so counties negotiate bond for title deals with development authorities one project at a time. Governing
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| High technology data center equipment sales and use tax exemption | Qualifying AI data center equipment is fully exempt from the 4 percent state sales and use tax and from all local sales taxes. Covered items include servers and other computer equipment, emergency backup generators, air handling units, cooling towers, energy storage, switches, power distribution units, switching gear, routers, batteries, wiring, cabling, and conduit. Land, buildings, and fixtures are real property and are not covered. O.C.G.A. § 48-8-3(68.1) Ga. Comp. R. & Regs. 560-12-2-.117(2)(e) O.C.G.A. § 48-8-30(b)(1) Combined state and local rates reach 8.9 percent in parts of Fulton County. One billion dollars of equipment bought there can save about 89 million dollars. Sales Tax Handbook Atlanta rate Georgia Department of Revenue A state audit published in December 2025 and revised in January 2026 put forgone state revenue at 474.2 million dollars in fiscal year 2025 alone. It found that about 70 percent of Georgia AI data center construction would have happened without the exemption. DOAA audit summary Carl Vinson Institute evaluation | The owner picks a seven year investment period that starts on or after July 1, 2018 and ends on or before December 31, 2031. The owner must also hit a spending and jobs tier set by county population. For certificates issued on or after May 9, 2022 under HB 1291, three tiers apply. 1) Counties over 50,000 people require 250 million dollars in qualifying expenditures and an average of 25 new quality jobs. 2) Counties of 30,001 to 50,000 require 75 million dollars and 10 jobs. 3) Counties of 30,000 or fewer require 25 million dollars and 5 jobs. Certificates issued before May 9, 2022 use the older tiers of 250 million, 150 million, and 100 million dollars with an average of 20 jobs at every tier. O.C.G.A. § 48-8-3(68.1)(G)(v) Ga. Comp. R. & Regs. 560-12-2-.117(2) A new quality job means at least 30 hours a week in the county on AI data center work at pay of at least 110 percent of the county average wage. O.C.G.A. § 48-7-40.17 Ga. Comp. R. & Regs. 560-12-2-.117(4)(c) The owner needs an exemption certificate from the Georgia Department of Revenue. The commissioner may require a surety bond of up to 20 million dollars. A colocation tenant with an initial contract of at least 36 months with a certified owner can get its own certificate. Georgia Department of Revenue Ga. Comp. R. & Regs. 560-12-2-.117(2)(d) Missing the threshold means repaying every exempted dollar plus interest within 90 days. That repayment is calculated notwithstanding the periods of limitation that would otherwise apply to an assessment. Penalties apply after that. Ga. Comp. R. & Regs. 560-12-2-.117(8) While the certificate is valid, the owner and its related members cannot claim any credit under O.C.G.A. §§ 48-7-40 through 48-7-40.33 or O.C.G.A. § 36-62-5.1 for anything connected to the AI data center. Amended returns can reclaim those credits if the exemption is later unwound. Ga. Comp. R. & Regs. 560-12-2-.117(9) O.C.G.A. § 48-8-3(68.1)(F) No exempt purchases are allowed after December 31, 2031. All owner certificates expire that day by operation of law. O.C.G.A. § 48-8-3(68.1)(H) Ga. Comp. R. & Regs. 560-12-2-.117(5)(e) Owners also file annual reports. The Department of Revenue publishes aggregate expenditures by county. Georgia Department of Revenue aggregate expenditures Nothing in the statute or the rule bars a taxpayer from using this exemption and the older high technology company exemption under O.C.G.A. § 48-8-3(68) on different purchases. In fact the newer paragraph borrows the older one's definition of computer equipment. The only express bar in paragraph (68.1) runs to income tax credits, not to other sales tax exemptions. O.C.G.A. § 48-8-3(68.1)(G)(iv) Ga. Comp. R. & Regs. 560-12-2-.117 | Active. The program took effect July 1, 2018 under HB 696, known around the Capitol as the Switch Bill. It expires December 31, 2031. Switch O.C.G.A. § 48-8-3(68.1) Bills filed in the 2026 session would do one of the following. 1) End the exemption on January 1, 2027. 2) Repeal it as soon as it was signed. 3) Suspend new certificates from July 1, 2026 through June 30, 2027. 4) Move the sunset up to December 31, 2026. Alston and Bird |
| High technology company computer equipment exemption | This older exemption covers computer equipment bought or leased by a single purchaser in listed high technology NAICS codes when annual Georgia purchases exceed 15 million dollars. O.C.G.A. § 48-8-3(68)(A) Ga. Comp. R. & Regs. 560-12-2-.107 Ga. Comp. R. & Regs. 560-12-2-.107 at Cornell Since January 1, 2024 the buyer must pay 10 percent of the state and local tax on the first 15 million dollars of exempt purchases each year. Georgia Department of Audits evaluation A refund claim returns 90 percent of the tax on that first tranche. Withum A single tenant operator running its own AI data center can use this older exemption instead of the data center exemption depending on how the project is structured. The state fiscal note on SB 410 puts the data center NAICS code 518210 among the eligible codes. It estimates 82.4 percent of data center equipment purchases would also qualify here. Georgia Department of Audits evaluation Fiscal note on SB 410, LC 59 0263 | The buyer must meet three conditions. 1) It falls under a qualifying high technology NAICS code. 2) It buys or leases more than 15 million dollars of computer equipment for operational use in Georgia in the calendar year. 3) The equipment is incorporated into a facility in the state. The exemption may be taken at the point of sale under a commissioner issued certificate or claimed later by refund. The commissioner may require a bond. O.C.G.A. § 48-8-3(68) Ga. Comp. R. & Regs. 560-12-2-.107 Ga. Comp. R. & Regs. 560-12-2-.107 at Cornell A qualifying entity affiliated with a nonqualified entity must do at least a majority of its business with unaffiliated parties. Each certificate holder files an annual report within 90 days after the calendar year. O.C.G.A. § 48-8-3(68)(D) and (E) | Active. The sunset now sits at December 31, 2028. Georgia General Assembly bill text Georgia Department of Audits evaluation |
| Bond for title local property tax abatements, state enabled | Georgia has no statewide property tax exemption for AI data centers. Relief comes through county and joint development authorities. The authority issues taxable revenue bonds, takes title to the project, and leases it back. The property stays off the ad valorem tax digest while the authority holds title. The company makes payments in lieu of taxes instead. Governing The December 2025 state audit modeled a representative three building campus worth more than 2 billion dollars in land, buildings, and equipment. At the average millage rate for the metro Atlanta jurisdictions studied, the annual bill would be 33.6 million dollars. Of that, 5.9 million dollars would be abated and 27.8 million dollars collected. These deals shave a slice off the bill rather than zeroing it out. DOAA audit summary Bond issues must be validated by the superior court. That review reaches only whether the financing complies with Georgia law, not whether the incentive is good policy. Dalton Daily Citizen | Each deal is negotiated with the local or joint development authority. There is no uniform formula. The structure has to run through an authority because the Georgia Constitution bars a direct gift of tax relief to a private company. Governing Terms usually include four elements. 1) A 10 year or longer abatement schedule. 2) Scheduled payments in lieu of taxes. 3) Clawback and compliance provisions. 4) Superior court bond validation. Bond filings say the debt is not backed by the county, the state, or local taxpayers. Bondholders cannot compel the use of tax revenue to repay it. Dalton Daily Citizen Dalton Daily Citizen The Development Authorities Law creates these authorities. It gives them the power to borrow money, issue bonds, and hold and lease a project. O.C.G.A. 36-62-6, powers of a development authority O.C.G.A. § 36-62-6 | Active and in heavy use. Whitfield County alone saw about 15.2 billion dollars of these bonds validated in a single hearing on June 4, 2026. Dalton Daily Citizen |
| Job, quality jobs, and investment tax credits, general programs | Georgia has no AI data center specific income tax credit. The general programs are available in theory. The Quality Jobs Tax Credit pays up to 5,000 dollars per new job per year for five years for jobs paying at least 110 percent of the county average wage. It can offset all of the income tax liability. Any excess is taken against payroll withholding. O.C.G.A. § 48-7-40.17 Georgia Department of Economic Development The Job Tax Credit and the Investment Tax Credit scale with the county tier. O.C.G.A. § 48-7-40 O.C.G.A. §§ 48-7-40.2 through 48-7-40.4 AI data centers that hold the sales tax exemption certificate cannot claim these credits at all for that facility. Ga. Comp. R. & Regs. 560-12-2-.117(9) DOAA audit summary | The Quality Jobs Tax Credit generally requires at least 50 new quality jobs within 24 months. O.C.G.A. § 48-7-40.17 An AI data center holding a valid exemption certificate under O.C.G.A. § 48-8-3(68.1) cannot claim any of these credits for anything connected to that facility. A developer has to pick one path. If the exemption is later revoked and the tax repaid, amended returns can reclaim the credits. Ga. Comp. R. & Regs. 560-12-2-.117(9) O.C.G.A. § 48-8-3(68.1)(F) | Active, but closed to projects using the data center sales tax exemption. Ga. Comp. R. & Regs. 560-12-2-.117(9) |
County and local programs
Bartow County
Bartow is the site of Project Bunkhouse, a proposed 19 billion dollar campus that would be one of the largest developments in state history, and the county has been writing AI data center rules while it is pending. Govtech WBHF Radio Daily Tribune News
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Project Bunkhouse proposal | Preliminary plans for Project Bunkhouse were revealed on March 31 for a 12 building AI data center campus in Bartow County. The campus would cover about 877 acres and nearly 8.7 million square feet. The estimated buildout is 19 billion dollars. Projected tax revenue runs between 40 and 50 million dollars. The project would finish around 2035. Govtech WBHF Radio No abatement or payment in lieu of taxes agreement had been published as of August 2, 2026. The county economic development authority says it does not incentivize data centers and shut down the incentive talks. Govtech | Local zoning approval first. The site is zoned agricultural and needs rezoning to Business Park District. WBHF Radio The Bartow County Planning Commission recommended a text amendment setting rules for proposed AI data centers. It would require a 200 foot buffer. Daily Tribune News Any incentive package would run through a county development authority under the Development Authorities Law. O.C.G.A. 36-62-6, powers of a development authority | Pending. The zoning side cleared on June 4, 2025 when Bartow County's sole commissioner approved the Project Bunkhouse rezoning. The approval carried conditions on buffers, site access, and total building square footage. The incentive stage comes after that. Daily Tribune News |
Bulloch County
Bulloch commissioners unanimously adopted a 90 day AI data center moratorium on February 26, 2026, extended it in May 2026, and have discussed banning the use outright. PIER Commercial WTOC A draft text and map amendment would allow the use in industrial areas under added conditions. It would also allow smaller AI data centers in highway commercial areas inside an overlay zone. No local incentive framework applies for now. Bulloch County draft amendment
Butts County
AWS announced an AI data center campus along Interstate 75 here in January 2025, and the county development authority markets bond for title property tax incentives. Atlanta Journal Constitution Development Authority of Butts County
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Development Authority of Butts County incentives for the AWS campus | Amazon Web Services announced on January 7, 2025 that it would spend at least 11 billion dollars on new AI data center campuses in Butts and Douglas counties combined. The two projects would add about 550 new jobs. Atlanta Journal Constitution Henry County News County officials said Butts County will collect fixed payments from Amazon to fund public infrastructure and services such as schools and water. Atlanta Journal Constitution The Development Authority of Butts County markets bond for title property tax incentives to qualifying industrial projects. It calls the AWS campus one of the largest investments in Georgia history. Development Authority of Butts County Development Authority of Butts County incentives As of August 2, 2026 the authority had published no abatement schedule. Local reporting puts the county’s share of the 2027 payment in lieu of taxes at 16.5 million dollars. Jackson Progress-Argus I could not find a reported bond validation figure for the campus. Development Authority of Butts County incentives | Negotiated with the Development Authority of Butts County. The county's combined property tax rate is 24.134 mills before any abatement. Development Authority of Butts County incentives The authority draws its power to issue bonds and hold title from the Development Authorities Law. O.C.G.A. 36-62-6, powers of a development authority | Active. Butts County, the county school system, and the Development Authority of Butts County all approved an amended intergovernmental agreement with Amazon on November 12, 2025, covering roughly 12 AI data centers. The payments in lieu of taxes start in 2027. Jackson Progress-Argus |
Clayton County
The county development authority approved an incentive package in June 2025 for a 959 million dollar TA Realty AI data center and refused to say what it is worth. Govtech
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| TA Realty East Tanners Church Road incentive package | The Development Authority of Clayton County, also known as Invest Clayton, approved an incentive package in June 2025 for an AI data center along East Tanners Church Road. The facility is a 959 million dollar, 180 megawatt project built by a TA Realty subsidiary. A bond inducement of nearly one billion dollars backs the deal. The abatement period is 10 years. Govtech Clayton News Daily Good Jobs First Reporting describes likely property tax savings in the tens of millions of dollars. The authority declined to disclose the terms and has routinely declined to provide incentive estimates. As of August 2, 2026 it had still published no dollar figure. Govtech | Negotiated with the Development Authority of Clayton County through the bond for title structure. The investment and job conditions were not made public. Govtech The authority acts under the Development Authorities Law. O.C.G.A. 36-62-6, powers of a development authority | Active. The Development Authority of Clayton County approved the package on June 12, 2025. The 10 year abatement opens with a 50 percent property tax cut in the first year. It steps up to the full bill by year ten. Atlanta Journal Constitution Govtech |
Coweta County
Coweta has become one of the busiest AI data center pipelines in the state with five proposed campuses, and the county development authority offers negotiated property tax savings, but the approvals are contested in court. Newnan Times-Herald 11Alive Choose Coweta
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Coweta County Development Authority negotiated incentives | The Coweta County Development Authority acts as a conduit for taxable and tax exempt bonds. It may offer property tax savings for a negotiated period based on job creation, capital investment, and average wage. It also runs a discretionary job creation grant program. Choose Coweta The pipeline it is negotiating against includes Project Sail, a roughly 17 billion dollar campus across 832 acres. Newnan Times-Herald It was rezoned in April 2026 on a 3 to 2 vote. Fox 5 Atlanta The campus is expected to produce roughly 100 million dollars in tax revenue at full buildout. Newnan Times-Herald The developer is Prologis. Prologis stayed out of view for months while Atlas Development LLC of Carrollton served as the public face of the application. I could not find reporting that supports the widely shared claim that Microsoft is behind it. DeSmog Project Peach was rezoned the same month across 320 acres in Palmetto for about 2.1 million square feet and 700 megawatts. Bridgeport is valued at 3 to 5 billion dollars. Its projected property tax revenue is 30 to 50 million dollars. Project Pegasus is valued near 1.5 billion dollars. Project Oak is projected at 40 million dollars of tax revenue. Newnan Times-Herald | Negotiated case by case with the development authority against job creation, capital investment, and wage commitments. Choose Coweta Rezoning and a development of regional impact review come first. The county adopted an AI data center ordinance with buffer and setback rules after a 180 day moratorium in 2025. Atlanta News First Newnan Times-Herald A group of residents sued in superior court to undo the Project Sail rezoning. They argue the county abused its zoning powers. The approval is not settled in practice. 11Alive Newnan Times-Herald The authority's power to issue bonds and hold title comes from the Development Authorities Law. O.C.G.A. 36-62-6, powers of a development authority | Active. Coweta County extended its pause on new AI data center applications in early December 2025. It then adopted the ordinance on December 16, 2025 by a 4 to 1 vote. That ordinance is now the frame any new package has to fit. 95.5 WSB WSB-TV |
DeKalb County
DeKalb has kept an AI data center moratorium in place since July 2025 and the commission rejected its own proposed land use and zoning regulations on June 23, 2026. WABE It then extended the moratorium to March 30, 2027, so there is no county framework and no published abatement for this use. Decaturish
Douglas County
Douglas has hosted Google's Georgia campus since 2003 and has an announced AWS investment of at least 5 billion dollars, and it has also had an AI data center moratorium in place since March 2025. Google Elevate Douglas Fox 5 Atlanta
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| AWS Douglas County campuses | Amazon Web Services announced on January 7, 2025 that it plans to invest at least 5 billion dollars to build AI data center campuses in Douglas County. The plan would create more than 250 new full time jobs. Elevate Douglas Economic Partnership made the announcement. Elevate Douglas Elevate Douglas release The Douglas County Board of Commissioners approved a 15 year property tax break for the company. Atlanta Journal Constitution I could not find a published abatement schedule. The county commission also voted 4 to 1 in March 2025 for a 90 day moratorium on AI data centers. Fox 5 Atlanta The pause was still in place in December 2025. 95.5 WSB | Negotiated locally through the development authority bond for title structure. The county approved a 15 year property tax break. The schedule has not been disclosed. Elevate Douglas Atlanta Journal Constitution That structure sits in the Development Authorities Law. O.C.G.A. 36-62-6, powers of a development authority | Approved and still in the build out phase. The Douglas County Board of Commissioners voted 4 to 1 on January 7, 2025 to place the AWS project in the county tax incentive program under a 15 year plan. Douglas County Sentinel The abatement schedule is still not public. Local approvals ran on through 2025. In September 2025 the Douglasville City Council approved a variance for five 50 foot water cooling towers at Amazon's 132 acre West Strickland Street site. Douglas County Sentinel Amazon also withdrew four stream setback and impervious surface variance requests there. I found no record that an AWS AI data center in Douglas County has opened. |
| Douglasville data center tax abatement, Project Smart | The Douglasville City Council approved a property tax abatement plan in November 2017 for a 200 million dollar three phase AI data center on a 44 acre site. The project was code named Project Smart. The deal waived a share of property taxes for a set period on a performance basis. Roughly 600 million dollars of data center equipment stayed fully taxable. DatacenterDynamics It shows the standard shape of local incentives in Douglas County. The county also hosts a Google data center. Google has committed more than 3 billion dollars in Georgia since building that data center in 2003. Google | A performance based abatement negotiated with the city and the local development authority, phased over several years of construction. DatacenterDynamics The local development authority acts under the Development Authorities Law. O.C.G.A. 36-62-6, powers of a development authority | Approved in 2017 and then abandoned. The abatement was for CyrusOne, which the city had code named Project Smart, and the company confirmed the Douglasville campus in December 2017. DatacenterDynamics CyrusOne acquired the 44 acre site that year. CyrusOne fourth quarter 2017 results It never built there. The company wrote the land down and sold it to a third party in February 2021. CyrusOne annual report for 2021 CyrusOne lists no Georgia location among its data centers today. CyrusOne No AI data center was ever built to earn the performance based abatement. |
Fulton County
The Development Authority of Fulton County is the busiest AI data center abatement grantor in the state and has approved 10 year bond for title deals for Edged Energy and Microsoft. Atlanta Journal Constitution Atlanta Journal Constitution QTS asked for one too and then withdrew the request. Atlanta Journal Constitution
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Microsoft Union City abatement | The Development Authority of Fulton County approved about 75 million dollars in property tax savings over 10 years in June 2024 for a Microsoft AI data center campus in Union City. Reporting valued the project near 1.8 billion dollars. Atlanta Journal Constitution ConnectCRE | A negotiated bond for title lease with the development authority, sized to the project investment. Governing ConnectCRE The authority's power to issue the bonds and take title comes from the Development Authorities Law. O.C.G.A. 36-62-6, powers of a development authority | Active. The Development Authority of Fulton County approved the deal on June 25, 2024 by a 5 to 3 vote. The abatement runs 10 years. The board required all three buildings to be finished by 2032. Atlanta Journal Constitution ConnectCRE |
| Edged Energy Tilford Yard abatement | The Development Authority of Fulton County took up the Edged Energy project at its meeting of September 26, 2023. What the agenda records is a letter of inducement for Edged Atlanta LLC and two Tilford entities at 1.54 billion dollars. That is the preliminary step rather than a granted abatement. Development Authority of Fulton County agenda, September 26, 2023 The Atlanta Journal Constitution reported the data center abatement at about 32 million dollars in tax savings, part of more than 40 million dollars the authority approved that day. The site is the former Tilford Yard rail site in west Atlanta. The authority page does not record a vote tally, and the newspaper body is served scrambled against automated readers, so no vote count is sourced here. Atlanta Journal Constitution Atlanta Journal Constitution follow up coverage The Fulton County Board of Assessors later approved the appraisals that set the abated value. That step turns the approved figure into realized savings. The final number tracks the appraisals rather than the headline. Atlanta Journal Constitution The campus now spans more than 80 acres. Two operating buildings total about 127 megawatts. A third 42 megawatt building has topped out. Datacenter.news | A negotiated bond for title lease with the development authority. The authority holds title. The company makes scheduled payments while the abatement runs. Governing The Board of Assessors must approve the appraisals that fix the abated value. Atlanta Journal Constitution The Development Authorities Law is what lets the authority issue the bonds and take title in the first place. O.C.G.A. 36-62-6, powers of a development authority | Active. The Development Authority of Fulton County induced the project in September 2023 and the campus is still being built out. Development Authority of Fulton County agenda, September 26, 2023 Atlanta Journal Constitution Datacenter.news |
| QTS Westside BeltLine abatement | The Fulton development board took up a property tax break worth about 45 million dollars for a QTS AI data center being built near the Westside BeltLine in Atlanta. 11Alive Atlanta Journal Constitution | A negotiated bond for title lease with the development authority. 11Alive Governing The authority issues those bonds under the Development Authorities Law. O.C.G.A. 36-62-6, powers of a development authority | Withdrawn. QTS pulled the 45 million dollar request in 2023 before the Development Authority of Fulton County ever voted on it. The company can reapply at any time. Atlanta Journal Constitution |
Jasper County
Jasper is the smallest partner in the Stanton Springs joint development authority and takes 10 percent of the Meta payments in lieu of taxes. The Covington News The Covington News on the JDA agreements
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Share of the Stanton Springs JDA PILOT | Jasper County receives 10 percent of every payment in lieu of taxes collected from the Meta campus by the Joint Development Authority of Jasper, Morgan, Newton and Walton Counties. That share came to 300,000 dollars out of the 3 million dollar payment disbursed on April 23, 2024. The Covington News Rockdale Newton Citizen | Set by the joint development authority agreement rather than by any separate Jasper County program. The Covington News Joint authorities like this one are created under the Development Authorities Law. O.C.G.A. 36-62-6, powers of a development authority | Active and still paying out. The joint development authority amended its fiscal year 2025 budget to disburse 5.5 million dollars in payments in lieu of taxes to the four counties in the spring of 2025. Rockdale Newton Citizen |
Morgan County
Morgan is a member of the Stanton Springs joint development authority and takes 15 percent of the Meta payments in lieu of taxes. The Covington News The Covington News on the JDA agreements
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Share of the Stanton Springs JDA PILOT | Morgan County receives 15 percent of every payment in lieu of taxes collected from the Meta campus by the Joint Development Authority of Jasper, Morgan, Newton and Walton Counties. That share came to 450,000 dollars out of the 3 million dollar payment disbursed on April 23, 2024. The Covington News Rockdale Newton Citizen | Set by the joint development authority agreement rather than by any separate Morgan County program. The Covington News The joint authority itself is created under the Development Authorities Law. O.C.G.A. 36-62-6, powers of a development authority | Active and still paying out. The joint development authority amended its fiscal year 2025 budget to send 5.5 million dollars in payments in lieu of taxes to the four counties in the spring of 2025. Rockdale Newton Citizen |
Newton County
Meta's Stanton Springs campus near Social Circle sits on land held by a four county joint development authority, so the property stays off the tax digest and Meta pays into a shared payment in lieu of taxes instead. Atlanta Business Chronicle The Covington News The Covington News on the JDA agreements
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Meta Stanton Springs bond for title and PILOT deal | The Joint Development Authority of Jasper, Morgan, Newton and Walton Counties approved a 42 billion dollar bond resolution in January 2018. It was for the Facebook project then known as Morning Hornet LLC. Atlanta Business Chronicle Monroe Local The authority issued a second 42 billion dollar bond resolution in 2021 for a second AI data center at the same park, first held by Baymare LLC. Morning Hornet later took ownership of that project as well. That is how the second campus was tied back to Meta. Monroe Local The Walton Tribune The authority holds title. The property is exempt from county and school ad valorem tax, including during construction. The company makes payments in lieu of taxes. Under the agreements Newton County commissioners approved for the second project, those payments start in April 2027 at 2 million dollars a year. They rise by 1 million dollars every two years. The Covington News On April 23, 2024 the authority voted to disburse a 3 million dollar Meta payment among the four counties. Newton and Walton each took 37.5 percent, Morgan 15 percent, and Jasper 10 percent. Newton's share was 1.125 million dollars. The split tracks what each county originally put into Stanton Springs. The Covington News Rockdale Newton Citizen Meta announced the original 970,000 square foot Newton facility, later renamed the Stanton Springs Data Center. It paired the facility with a Walton EMC renewable power arrangement. Meta | Phased construction commitments are set in the bond documents. Payments in lieu of taxes are due on schedule and split by each county's stake in the park. Atlanta Business Chronicle The Covington News Those bond resolutions run under the Development Authorities Law. O.C.G.A. 36-62-6, powers of a development authority | Active and still paying out. The joint development authority amended its fiscal year 2025 budget to disburse 5.5 million dollars to the four counties in the spring of 2025. The Meta campus at Stanton Springs South pays 1 million dollars a year for each building. Rockdale Newton Citizen |
Twiggs County
Twiggs approved an AI data center over public objection, with the developer projecting about 600 jobs and telling commissioners it was not seeking tax breaks, so there is no abatement or payment in lieu of taxes deal to report. Macon Melody Macon Telegraph Macon Telegraph via AOL Residents then sued in Twiggs County Superior Court, arguing the county ignored its own zoning and public notice rules. Govtech
Walton County
Walton is a member of the four county joint development authority behind Stanton Springs and takes the same 37.5 percent share of the Meta payments in lieu of taxes as Newton. The Covington News The Covington News on the JDA agreements
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Share of the Stanton Springs JDA PILOT | Walton County receives 37.5 percent of every payment in lieu of taxes the Joint Development Authority of Jasper, Morgan, Newton and Walton Counties collects from the Meta campus. The formula reflects what each county originally put into Stanton Springs, with Newton and Walton at 37.5 percent each, Morgan at 15 percent and Jasper at 10 percent. Rockdale Newton Citizen That made its share of the 3 million dollar payment disbursed on April 23, 2024 worth 1.125 million dollars. The Covington News Walton EMC also supplies the campus and arranged renewable generation for it. Meta | Set by the joint development authority agreement rather than by any separate Walton County program. The Covington News The four county authority operates under the Development Authorities Law. O.C.G.A. 36-62-6, powers of a development authority | Active and still paying out. The joint development authority amended its fiscal year 2025 budget to disburse 5.5 million dollars in payments in lieu of taxes to the four counties in the spring of 2025. Rockdale Newton Citizen |
Whitfield County
A Whitfield County Superior Court judge validated about 15.2 billion dollars of AI data center bonds on June 4, 2026, the largest single validation tied to this structure that surfaced in this review. Dalton Daily Citizen
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Dalton Whitfield County Joint Development Authority bond for title packages | On June 4, 2026 a Whitfield County Superior Court judge validated approximately 15.2 billion dollars in taxable revenue bonds tied to four AI data center projects proposed through the Dalton Whitfield County Joint Development Authority. Dalton Daily Citizen The four packages break down as follows. 1) 900 million dollars of equipment bonds for CoreWeave Dalton LLC. 2) Two series for CoreWeave Dalton II LLC of 6.4 billion and 6.7 billion dollars. 3) 1.2 billion dollars for three Integra entities whose project is subleased to CoreWeave Dalton II at the Old Tilton Road site that Core Scientific owns. The same court had validated about 1.49 billion dollars of Core Scientific and CoreWeave bonds in October 2025. Dalton Daily Citizen Dalton Daily Citizen The bonds implement approved property tax abatement agreements through the bond for title structure. They are not backed by Whitfield County taxpayers. They create no repayment obligation for local governments. No formal interventions were filed before the hearing. Dalton Daily Citizen | Negotiated with the Dalton Whitfield County Joint Development Authority and validated in superior court. That review reaches only the legality of the bonds and the related agreements. Dalton Daily Citizen The abatement schedules, payment in lieu of taxes provisions, and clawback terms sit in bond resolutions and lease agreements. The paper had obtained those documents from the court but had not yet reported them in detail as of August 2, 2026. Dalton Daily Citizen Dalton Daily Citizen The joint authority issues and validates those bonds under the Development Authorities Law. O.C.G.A. 36-62-6, powers of a development authority | In effect. The Whitfield County Superior Court validated the bonds on June 4, 2026. No one filed a formal intervention. The bond documents now stand as legally validated obligations under Georgia law. Dalton Daily Citizen |
Hawaii has no AI data center incentive at the state level or the county level, and in 2026 the legislature moved to study AI data centers rather than recruit them. Both chambers adopted HCR 206 in final form on April 27, 2026, which asks the Hawaii State Energy Office to convene a working group on the grid, ratepayer, water, and climate impacts of large data centers. HCR 206 H.D. 1 Civil Beat Digital Democracy The closest general tools are the Enterprise Zones Partnership Program, which Act 182 broadened in July 2026, a 4 percent capital goods excise tax credit, and the fact that no Hawaii county taxes business equipment. HRS ch. 209E Act 182, SB 2360 C.D. 1 HRS § 235-110.7
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Enterprise Zones Partnership Program | A qualified business pays no general excise tax on gross proceeds from eligible activities for a standard period of seven years. It also gets a nonrefundable state income tax credit that starts at 80 percent of tax liability in year one and drops ten points a year to 20 percent in year seven. It gets a second credit on the identical schedule against the unemployment insurance premiums it pays on employees in the zone. DBEDT Enterprise Zones Program 2024 Annual Report Licensed general contractors and subcontractors are separately exempt from the general excise tax on work done at the enrolled site. The enrolled firm can try to negotiate a share of that saving. That is the one piece of this program that would actually reach an AI data center buildout. DBEDT Enterprise Zones Program 2024 Annual Report Act 182 makes three changes. 1) It stretches the state business tax credit from seven years to nine for taxable years beginning after December 31, 2026. 2) It stretches the unemployment credit the same way, so the 20 percent rate applies in the seventh, eighth, and ninth years. 3) Effective January 1, 2028 it stretches the general excise tax exemption from seven years to nine, or from ten years to twelve for manufacturers and agricultural producers. Act 182, SB 2360 C.D. 1 Thomson Reuters Checkpoint SB 2360 H.D. 1 The counties add their own benefits. They are thin. Honolulu gives a two year exemption from any property tax increase caused by new construction at an enrolled site, plus a waiver of building and grading permit fees. Hawaii County gives a three year version of that same property tax exemption. Kauai and Maui counties offer nothing but priority business permit processing. DBEDT Enterprise Zones Program 2024 Annual Report DBEDT Enterprise Zones Program 2023 Annual Report Maui County itself advertises a wider list than that. It names 1) priority permit processing, 2) zoning or building permit waivers or variances, 3) property tax adjustments, and 4) priority consideration for federal job training or community development funds. Maui County Enterprise Zones | The business must sit inside one of the eighteen designated zones. The 2024 annual report lists five in Honolulu County, five in Hawaii County, four in Kauai County, and four in Maui County. It shows the Greater Maui and West Maui zones running out on April 30, 2026. DBEDT Enterprise Zones Program 2024 Annual Report At least half of annual gross income earned in the zone has to come from an eligible activity. DBEDT Enterprise Zones Partnership Program Information technology design and production services and telecommunication switching and delivery are the two entries on the eligible list that come closest to an AI data center. DBEDT decides eligibility firm by firm rather than by published rule. Act 182, SB 2360 C.D. 1 HRS ch. 209E DBEDT Enterprise Zones Program 2024 Annual Report None of the 129 companies enrolled statewide in 2024 is identified as a data center. I found no published DBEDT determination on one as of August 2, 2026. So an operator applying would be asking the agency to decide the question for the first time. DBEDT Enterprise Zones Program 2024 Annual Report Enrollees also have to grow full time employment, generally by at least 10 percent in year one with continued increases after that. Act 182, SB 2360 C.D. 1 Retailers, most professional services, and contractors are shut out. DBEDT Enterprise Zones Program 2024 Annual Report Act 182 adds one more path. DBEDT may now declare up to two census tracts on state land that contain an innovation enterprise to be an enterprise zone, with the governor's approval. It may do so without regard to the county application requirements, geographic limits, or eligibility criteria that otherwise apply. Innovation enterprise is defined to cover areas supporting businesses primarily engaged in information technology design and production services. Act 182, SB 2360 C.D. 1 That definition is the single most AI data center adjacent hook anywhere in Hawaii law. One catch is that the extended credit and exemption periods in Part II of Act 182 apply only to firms designated as a qualified business on or after July 1, 2026. Act 182, SB 2360 C.D. 1 DBEDT has to certify to the Department of Taxation each year that a qualified business is exempt from the general excise tax. HRS § 209E-11 The exemption clock is paused while a force majeure event lasts. HRS § 209E-11 | Active and amended by Act 182, Session Laws of Hawaii 2026. The act completed legislative action on July 7, 2026. Act 182, SLH 2026 (SB 2360 SD1 HD2 CD1 measure status, Hawaii State Legislature) The act takes effect July 1, 2026. The tax credit extension applies to taxable years beginning after December 31, 2026. The general excise tax exemption extension takes effect January 1, 2028. Act 182, SB 2360 C.D. 1 |
| Capital Goods Excise Tax Credit | An income tax credit equal to 4 percent of the cost of eligible depreciable tangible personal property that the taxpayer uses in a trade or business in Hawaii. HRS § 235-110.7 Form N-312 It works as a partial offset to the general excise and use tax a buyer bears on an equipment purchase. An AI data center buying servers, cooling gear, and power equipment for use in Hawaii could claim it like any other business. Banks and financial corporations get the same credit under their own franchise tax. HRS § 241-4.5 It does not wash the tax out. All four counties have now adopted the 0.5 percent surcharge on top of the 4 percent state rate. So the real rate on an equipment purchase is 4.5 percent statewide. The credit leaves half a point on the table. Hawaii Department of Taxation | The property has to be depreciable tangible personal property bought or imported for use in a Hawaii trade or business. HRS § 235-110.7 The credit is claimed on Form N-312 for the year the property is placed in service. Form N-312 There is no minimum investment, no job requirement, and no industry restriction. HRS § 235-110.7 | Active and operative since 1987. HRS § 235-110.7 Hawaii Rev. Stat. § 235-110.7 Act 24, Session Laws of Hawaii 2026, added a sunset. The credit does not apply to taxable years beginning after December 31, 2027. Act 24, SB 3125 C.D. 2 |
| No property tax on business equipment statewide | Hawaii is one of the states that broadly exempts tangible personal property from property taxation. Tax Foundation Property tax is a county job. The state constitution gives the counties the taxation of real property exclusively, apart from the county of Kalawao. Hawaii Constitution article VIII section 3 So servers, racks, cooling plants, and other movable AI data center equipment face no recurring property tax anywhere in the state. Honolulu Real Property Assessment Division This is structural treatment that every business gets, not an AI data center program. | Nothing to do. The counties assess land and buildings and nothing else, so there is no business personal property return to file. Hawaii Constitution article VIII section 3 Tax Foundation Honolulu Real Property Assessment Division | Active as a permanent feature of Hawaii property tax law. Tax Foundation |
County and local programs
Hawaii County
The Big Island is moving to zone industrial scale AI data centers out rather than court them. Hawaii Public Radio It offers no AI data center incentive of any kind, and its only enterprise zone sweetener is a three year exemption from any property tax increase caused by new construction at an enrolled site. DBEDT Enterprise Zones Program 2024 Annual Report
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Bill 170, proposed zoning ban on industrial scale data centers | There is no benefit here. Bill 170 runs the other way. It belongs on this map because it is the most important local development for anyone sizing up the Big Island. The bill would amend the county zoning code to define a data center as a facility used for the industrial scale operation of computer systems and associated equipment for processing, computing, transmission, or dissemination of digital data. Such a facility needs supporting infrastructure beyond what is typically accessory to office, commercial, or public institutional uses. The bill states flatly that data centers are not a permitted use in the county. Hawaii Public Radio Hawaii County Council record It splits data centers off from data processing facilities. Data processing facilities are defined as establishments primarily involved in compiling, storing, and maintaining records in digital form on a mainframe computer. They are allowed today on land zoned industrial commercial mixed use. The stated point is to stop developers from using the data processing category as a zoning loophole. Hawaii Tribune-Herald West Hawaii Today | Not law yet. The Policy Committee on Planning, Land Use, and Economic Development voted 8 to 0 on July 7, 2026 to send Bill 170 to the planning director and both planning commissions for review. The vote followed testimony from nearly a dozen supporters. Hawaii Tribune-Herald Hawaii Public Radio The bill carves out data centers serving public institutions. So the University of Hawaii at Hilo campus data center would be untouched. It would not reach back to the existing Hawaiian Telcom facility at Kawaihae. The county planning director told the committee he knew of no formal data center permit application, only inquiries. Hawaii Public Radio West Hawaii Today | Not law. The county council record for Bill 170 logs a single action. That action is a July 7, 2026 referral by the Policy Committee on Planning, Land Use, and Economic Development to the planning director and both planning commissions. Nothing follows it in the record. Hawaii County Bill 170 council record Hawaii Tribune-Herald The bill is not on the Windward Planning Commission agenda for August 6, 2026. That commission's next regular meeting is September 3, 2026. Windward Planning Commission agenda for August 6, 2026 |
Honolulu County
Oahu holds nearly all of Hawaii's AI data center capacity, including the state's largest facility. Data Center Map DRFortress The only local tax tool an operator could reach is the enterprise zone property tax benefit, and no AI data center is known to use it. DBEDT Enterprise Zones Program 2024 Annual Report
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Enterprise Zone real property tax rebate | Honolulu may rebate real property taxes for a certified enterprise zone business once the city council authorizes the rebate by resolution. The ordinance fixes no rate and no term of its own. So the size of the rebate and the number of years both come from the authorizing resolution. ROH § 31-2.2 What DBEDT reports Honolulu actually offering is a two year exemption from any property tax increase caused by new construction at an enrolled site. Honolulu also waives building and grading permit fees. DBEDT Enterprise Zones Program 2024 Annual Report The rebate reaches real property held by the qualified business inside the zone as delineated in the council resolution. The property must be used for that business's activities. ROH § 31-2.2 A lessee counts as a property owner if the lease 1) runs seven years or more, 2) is recorded, and 3) makes the lessee pay the taxes on the property. ROH § 31-2.1 Claims go to the Real Property Assessment Division in the tax year after the tax year being claimed on Form BFS-RPA-M-31-2. Form BFS-RPA-M-31-2 Honolulu enterprise zone forms Outside the rebate, the city may also cut permit fees and user fees. It may grant regulatory flexibility such as permit process reform and exemptions from local ordinances. ROH § 31-1.4 Article 2 of chapter 31 is the whole of the Honolulu rebate law. ROH ch. 31 art. 2 The director of budget and fiscal services may adopt rules under HRS chapter 91 to carry the article out. ROH § 31-2.5 | Three things have to be true. 1) The business is certified as a qualified business in the state Enterprise Zones program. 2) It operates in a designated Honolulu zone. 3) The rebate is authorized by council resolution. ROH § 31-2.2 For every tax year claimed, the director demands two proofs. One is proof of DBEDT certification that the business is exempt from the general excise tax that year. The other is proof that the applicant was a property owner on the certification date. Refusing to hand over the proof is grounds for denial with no appeal. ROH § 31-2.3 The property must be used for the approved eligible activity. An AI data center would have to clear the state eligibility test at DBEDT first. None of the 129 companies enrolled statewide in 2024 is identified as a data center. DBEDT Enterprise Zones Program 2024 Annual Report A Honolulu zone only exists after the council approves an application to the State by resolution. The resolution spells out the area and the incentives the city proposes to offer. The application must comply with Hawaii Administrative Rules § 15-6-4. ROH § 31-1.2 | Active. Article 2 of chapter 31 sits in the current 2026 S-10 edition of the Revised Ordinances of Honolulu. It carries no sunset date of its own. ROH ch. 31 art. 2 Nothing is paid out until the council authorizes a rebate by resolution for a given zone. I found no published resolution that sets a current rate or term. ROH § 31-2.2 |
Idaho lets a new AI data center buy server equipment and construction materials free of sales tax once the owner puts in 250 million dollars and creates 30 jobs, and once the exemption turns final it never expires. Idaho Code § 63-3622VV Three bills tried to narrow that break in the 2026 session and all three failed, the last one dying on a concurrence referral when the session ended. H0609 bill history H0820 bill history H0897 bill history What did pass were two guardrails. Any new electrical load of fifty megawatts or more now needs a service contract approved by the Idaho Public Utilities Commission. An AI data center that starts construction on or after July 1, 2026 may not consume water for cooling unless a municipal or district system supplies it. Idaho Code § 61-335 Idaho Code § 42-252
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Idaho Information Technology Equipment sales tax exemption | An AI data center pays no Idaho sales or use tax on eligible server equipment or on new data center facilities. The state rate is 6 percent, so on a project at this scale the saving runs to tens of millions of dollars. Eligible server equipment reaches servers, rack servers, chillers, storage devices, generators, cabling, and software that is installed on or integral to that equipment. The definition also expressly picks up computer collocation services. Idaho Code § 63-3622VV Idaho Code § 63-3619 A contractor who installs the equipment or builds the facility for the qualifying business gets the exemption too. The Tax Commission issues a provisional exemption while the money is going in. It turns final on its own once the targets are hit, with no further filing. Idaho Commerce Idaho Code § 63-3622VV From then on it also covers every later purchase of eligible server equipment and every purchase tied to building new data center facilities. Nothing in the statute sunsets. H0521 as enacted | Certify to the Idaho State Tax Commission that the company will invest at least 250 million dollars in the aggregate across one or more Idaho data centers within the first 5 years after construction begins. Also certify that it will create and maintain at least 30 new jobs at the data center within 2 calendar years after operations begin. Idaho Code § 63-3622VV Those jobs have to be nonseasonal and full time. Together they have to pay an average weekly wage at or above the county average in the most recent Bureau of Labor Statistics report. New jobs also have to beat the company's highest Idaho full time headcount over the 24 months before operations begin. Shuffling a job from one Idaho site to another does not count. The claimant has to be a business entity whose sole purpose is running a data center, or a separately operated segment of a business that meets the same test. Miss either target and the company owes back the sales and use tax it would have paid. Idaho Code § 63-3622VV (2025) The exemption is closed to property that already took incentives under the Idaho reimbursement incentive act. Idaho Code § 63-3622VV A separate 2023 law also blocks a qualifying project from having its value captured in a new urban renewal district. H0328 as enacted | Active. House Bill 521 created it in 2020 as Session Law Chapter 335, effective July 1, 2020. The code notes show no amendment since. H0521 bill history Idaho Code § 63-3622VV It came through the 2026 session untouched. H0897 bill history House Bill 897 would have capped the exemption at 20 years. It would also have narrowed the exemption to eligible server equipment for AI data center projects starting after July 1, 2026. Idaho Freedom Foundation on House Bill 897 |
| New construction roll exclusion for exempt data center property | Property that has won the provisional data center sales tax exemption stays out of the taxable market value of new construction. That keeps the exempt items from inflating the new construction budget capacity of local taxing districts. The exemption does not hand nearby districts a windfall in levy room. Idaho Code § 63-301A | The property has to qualify for the exemption in Idaho Code § 63-3622VV. House Bill 521 wrote this exclusion into § 63-301A in the same 2020 act that created the AI data center exemption. H0521 as enacted | Active since July 1, 2020, the effective date of Session Law Chapter 335. H0521 bill history |
| New capital investments property tax exemption | Caps a taxpayer's taxable property value in a single county at 400 million dollars. Everything above that in net taxable value is exempt from property tax and from special assessments. A general cap for very large investments, which an AI data center can reach without the cap being written for one. A big campus can use it. Idaho Code § 63-4502 | A qualifying new capital investment of at least 1 billion dollars in real, operating, or personal property tied to new plant and building facilities at a project site in one Idaho county. The 84 month qualifying period starts when a building permit issues for a permanent building at the site. Leased or rented personal property counts only to the extent the taxpayer is contractually on the hook for the tax. Property taking this exemption cannot stack another state property tax exemption on top of it. Idaho Code § 63-4502 Idaho Code § 63-4502 text Idaho Code § 63-4502 (2025) The taxpayer also has to file written notice with the county assessor and the board of county commissioners. The notice identifies the project, the parcels, and the start of the qualifying period. A notice filed after May 15 in a given year counts only for tax years after the filing year. Bonneville County new capital investments exemption | Active. The section was enacted in 2008 and amended in 2011 and 2018. The code notes show nothing since. Idaho Code § 63-4502 House Bill 897 in 2026 would have phased AI data centers out of it. The Senate amendment stripped that change. The bill then died. H0897 bill history Idaho Conservation League on HB 897 Idaho Freedom Foundation on House Bill 897 |
| County option property tax exemption for new plant investment | A board of county commissioners may exempt all or part of the increase over base value that a plant investment produces, for up to 5 years, under a contract with the taxpayer. This is the state enabled local abatement an AI data center can ask any Idaho county for. Idaho Code § 63-602NN | The county has to set a minimum investment amount by ordinance first, at least 500,000 dollars. That minimum has to apply the same way to every taxpayer. The investment has to bring significant economic benefits to the county. The facility has to be nonretail commercial or industrial. Land is not eligible. Money spent on land does not count toward the threshold. Buying an existing building does not count either, though improving one does. The exemption reaches only value above the base value of the project site in the year before the project period starts. The application goes to the county commissioners by April 15 of the first exemption year. Idaho Code § 63-602NN Idaho State Tax Commission guidance Idaho Commerce publishes model documents for counties, including a sample ordinance from Latah County and a sample application from Jerome County. It keeps no public register of which counties have adopted one. I could not find a county that has published a § 63-602NN award to an AI data center as of August 2, 2026. Idaho Commerce property tax exemption page Idaho Commerce § 63-602NN user guide | Active in its current broad form since House Bill 235 in 2017. Idaho State Tax Commission memo on House Bill 235 Idaho Code § 63-602NN |
| Utilities sales tax exemption | Sales of electricity, natural gas, and water delivered to a consumer at the place of consumption are exempt from Idaho sales tax. An AI data center pays no state sales tax on its power bill. Every customer in the state gets this, so it is not an AI data center program. Idaho Code § 63-3622F | Nothing beyond delivery to the consumer at the place of consumption. It applies on its own. Idaho Code § 63-3622F | Active. Idaho Code § 63-3622F |
| Tax Reimbursement Incentive | A performance based refundable credit worth up to 30 percent of the new state income tax, payroll withholding, and sales tax a project generates, over a negotiated term of up to 15 years. Idaho Commerce Idaho Commerce reporting puts the average award nearer 22 percent over about 10 years. The headline 30 percent is a ceiling rather than a going rate. Tax Reimbursement Incentive annual report BLS and Co. on Idaho incentives The program is the Idaho reimbursement incentive act. Idaho Code §§ 67-4737 to 67-4744 | Create at least 20 new jobs in a rural community or 50 in an urban one. Pay wages at or above the county average. Clear a community match and an economic benefit review. Idaho Commerce An AI data center can apply. But Idaho Code § 63-3622VV shuts off the sales tax exemption for any property that already took incentives under this act. So a large project normally picks the sales tax exemption instead. Idaho Code § 63-3622VV H0521 as enacted | Active, effective July 1, 2014. Idaho Commerce |
| Investment tax credit and the Idaho Business Advantage | A 3 percent income tax credit on qualified new depreciable tangible personal property used in Idaho. It can wipe out up to 50 percent of state income tax liability in a year. It carries forward 14 years. Idaho Code § 63-3029B Idaho investment tax credit overview Companies that qualify under the Small Employer Incentive Act, which Idaho markets as the Idaho Business Advantage, get an enhanced 3.75 percent rate. That rate is capped at 750,000 dollars or 62.5 percent of liability in a year. They also get a real property improvement credit and a new jobs credit. Idaho Business Advantage overview BLS and Co. on Idaho incentives Server gear is tangible personal property, so an AI data center can use the base credit whatever else it takes. | For the base credit, buy qualified new depreciable tangible personal property and use it in Idaho. Idaho Code § 63-3029B The Business Advantage package adds thresholds set by statute. One is a capital investment in new plant of at least 500,000 dollars during the project period. Another is at least 10 new employees, each earning at least 19.23 dollars per hour. Any additional new employees have to average at least 15.50 dollars per hour. That hourly floor is where the 40,000 dollar annual salary figure in the promotional guides comes from. The project period has to end no later than December 31, 2030. It can run no longer than 10 years. Idaho Code § 63-4402 | The base credit is active with no sunset. Idaho Code § 63-3029B Idaho pushed the Business Advantage sunset for the real property improvement and new jobs credits out to December 31, 2030. The statutory project period now runs to that same date. Idaho Code § 63-4402 Bloomberg Tax |
| New large load electricity law House Bill 911 | Not an incentive. It is a ratepayer protection law aimed at big new loads such as AI data centers. It shapes the power deal any large project can get in Idaho. House Bill 911 added a new Idaho Code § 61-335. The rule lives in the public utilities title rather than the tax code. | The law reaches a new large load. That means an electrical load that raises the cumulative power requirement at a service entrance by fifty megawatts or more in any consecutive 60 month period. It applies to a service contract entered into on or after July 1, 2026. A customer cannot dodge that by splitting the load across more than one service entrance or by bolting on extra meters and connections to serve what is really one enterprise. The utility has to file the service contract with the Idaho Public Utilities Commission before it serves the load, along with a no harm test. The commission has 270 days to approve or deny. Approval turns on two showings. First, service quality and reliability for other customers hold up. Second, the new large load funds its full cost of service, including the generation, transmission, substation, and distribution investment that would not exist but for it. Approval is also conditioned on financial security in a form and amount the commission sets, sized to cover stranded and unrecoverable costs. The commission then revisits the rates in every general rate case. It can adjust them going forward. Idaho Code § 61-335 | Enacted. The bill was introduced March 17, 2026. It passed the House 65 to 3 on March 20. It passed the Senate 34 to 1 on March 30. The governor signed it as Session Law Chapter 335 of 2026. It carries an emergency clause and took effect July 1, 2026. H0911 bill history Idaho Conservation League bill tracker Idaho H0911 (2026), sec. 2, Session Law ch. 335 H0911 action history |
| Data center water cooling limits House Bill 895 | Not an incentive. It limits how a future AI data center may use water for cooling. That pushes new projects toward closed loop designs or toward buying treated water from a city. Idaho Code § 42-252 Idaho Conservation League on House Bill 895 | A data center as defined in Idaho Code § 63-3622VV that begins construction on or after July 1, 2026 may not use water for cooling purposes as a consumptive use. That ban lifts only where a municipal, water district, or water and sewer district system supplies the water. The ban reaches consumptive use only, so a genuinely closed loop design falls outside it. The act also carries legislative findings aimed at Idaho Code §§ 42-202A and 42-222. One finding is that the water these facilities need conflicts with the local public interest as defined in Idaho Code § 42-202B. Another is that it runs against state water conservation. A third is that it can hurt the local economy of the watershed the water comes from. The findings tell the director of the Department of Water Resources to weigh all of that when reviewing a new appropriation or a transfer of existing water rights for a data center. Idaho Code § 42-252 BillTrack50 on Idaho HB 895 | Enacted. It passed the House 58 to 10 on March 20, 2026. It passed the Senate 32 to 1 on March 31. The governor signed it on April 2, 2026 as Session Law Chapter 291. Emergency clause, effective July 1, 2026. H0895 bill history Capital Press on House Bill 895 H0895 action history |
| Urban renewal district restriction House Bill 328 | Not an incentive. An AI data center whose qualifying investment triggers the state sales tax exemption cannot also have its new property value captured as increment in an urban renewal revenue allocation area. The statute adds that value straight to the base assessment roll in the current tax year. The property taxes then flow to the ordinary local tax base instead of to tax increment financing. H0328 as enacted The rule sits inside the definition of base assessment roll in the urban renewal chapter rather than in the tax code. Idaho Code § 50-2903 | The trigger is a business entity that makes capital investments in one or more data centers as defined in Idaho Code § 63-3622VV(2)(f) after July 1, 2020. Those investments have to total at least 250 million dollars in the aggregate within the first 5 years after construction begins. The entity also has to create and maintain at least 30 new jobs within 2 calendar years after operations begin. It applies only where no bonds had been issued under Idaho Code § 50-2909 for the revenue allocation area as of March 16, 2023. That date is the cutoff the 2023 act wrote in. It is also the date the act applies back to. The legislature took this up after Kuna annexed the Meta site into a new district in 2022. Two earlier 2023 attempts, House Bill 46 and House Bill 159, failed first. H0328 as enacted Idaho Freedom Foundation on HB 328 Idaho Press on the Kuna water treatment plan | Enacted as Session Law Chapter 308 of 2023, signed April 5, 2023 and applied back to March 16, 2023. It is the only one of several reform bills since 2020 to become law. H0328 bill history Data Center Dynamics |
County and local programs
Ada County
Kuna is the center of AI data center building in Idaho, with the roughly 800 million dollar Meta campus finishing construction and the 620 acre Gemstone Technology Park proposed nearby. Construction Equipment Guide Data Center Dynamics A 2023 state law ended the city's tax increment play on the Meta site. H0328 as enacted Idaho Press on the Kuna urban renewal district
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Kuna urban renewal district capture for the Meta data center site | In 2022 the city of Kuna annexed the Meta site into a new urban renewal district covering a 325 acre industrial park. The project's incremental property taxes would then pay for roads and utilities there. Data Center Knowledge Data Center Dynamics That is tax increment financing for area infrastructure rather than a tax cut handed to Meta. Kuna also meant to fund water treatment out of the district revenue. Idaho Press Separately Meta agreed to build a water and sewer system for the city and donate it. Early coverage reported the cost at about 50 million dollars. Later coverage put it at about 70 million dollars. Data Center Dynamics Construction Equipment Guide on the Kuna water and sewer system Meta's Kuna AI data center reached peak construction in January 2026 with about 1,400 workers on site. Meta expects it to be running by the end of 2026. Construction Equipment Guide on the Kuna project | House Bill 328 in 2023 shut the arrangement down going forward. A qualifying AI data center can no longer have its incremental value captured in a revenue allocation area. That bar lifts only where bonds had already been issued there under Idaho Code § 50-2909 as of March 16, 2023. The statute adds that value to the base assessment roll instead. H0328 as enacted The district itself was not dissolved. It simply lost the increment. That is what upset Kuna's water treatment funding plan. Idaho Press | Shut off for a qualifying project since March 16, 2023 and still shut off. The carve out remains in the current text of Idaho Code § 50-2903. Kuna's urban renewal agency is still running. It has a Kuna East district and a Kuna West district. In fiscal 2025 the agency received a fourth year of revenue allocation proceeds in the West district and a second year in the East district. It also reported a reduction in the East district's projected funding due to House Bill 328, the 2023 law behind the carve out. Kuna Urban Renewal Agency 2025 annual report Kuna Urban Renewal Agency 2023 annual report Kuna Urban Renewal Agency Kuna urban renewal plans |
| State sales tax exemption as used in Kuna | Both Kuna projects are large enough to clear the 250 million dollar threshold. That lets both buy construction materials and server equipment free of sales tax under the state program. Idaho Statesman Diode Ventures Data Center Dynamics on the Diode Ventures Kuna park I could not find a separate Ada County abatement on top of it. Idaho Code § 63-3622VV | The thresholds match the state program. One is 250 million dollars in the aggregate within 5 years of construction starting. The other is 30 new jobs within 2 calendar years of operations starting. Idaho Code § 63-3622VV | Active with no sunset date and no amendment since it was added in 2020. Idaho Code § 63-3622VV House Bill 897 in 2026 would have capped it at 20 years. It went no further after the House sent the Senate amended version back to Revenue and Taxation for a concurrence recommendation on April 2, 2026. H0897 bill history Idaho Freedom Foundation on House Bill 897 |
Bannock County
Pocatello turned down a 2.6 billion dollar AI data center at the former Hoku polysilicon site. Data Center Dynamics on the 2.6 billion dollar proposal A hearing examiner denied the conditional use permit in May 2026, finding the applicant had not shown the project would avoid harm to the public interest, health, safety, or welfare under city code chapter 17.02.130. KIVI The city council upheld that denial 4 to 1 on July 16, 2026. Local News 8 East Idaho News A tribal government whose ceded lands take in the site filed a statement of opposition with the council before the vote. Data Center Dynamics The developer, Lex Developments LLC of Arizona, called the denial arbitrary and capricious in its appeal and said it would sue, though no filed complaint had been reported as of August 2, 2026. Local News 8 Idaho State Journal on the promised lawsuit No local tax incentive was ever on the table.
Bonneville County
Deep Atomic has proposed a nuclear powered AI data center campus tied to Idaho National Laboratory near Idaho Falls, running on a 60 megawatt light water small modular reactor built for compute loads. Data Center Dynamics It is a siting proposal to the federal Department of Energy, so no state or county tax incentive attaches to it yet. No parcel has been made public and the laboratory site spans several counties, so the Bonneville County placement comes from project trackers rather than from a filed application. Data Center Map INL 2024 Annual Site Environmental Report
Cassia County
TerraVolt Infrastructure is planning a master planned AI data center campus in the Raft River area, powered by its own behind the meter gas plant, which would keep it off the local grid and outside the new large load review in Idaho Code § 61-335. Data Center Dynamics on the TerraVolt gas supply deal CalEthos Exhibit 10.1 on the Raft River Data Center Campus Idaho Code § 61-335 A campus at that scale could use the state property tax cap for billion dollar investments. Idaho Code § 63-4502
Kootenai County
Kootenai County is moving the other way. It banned new data center building permits for six months in 2025 to protect the Rathdrum Prairie sole source aquifer, then replaced the lapsed moratorium with a conditional use standard that flatly bars siting over the aquifer. Kootenai County Code 8.5.138 Spokane Public Radio
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Data center conditional use standards and building permit moratorium | The opposite of an incentive. Resolution 2025-23 put an emergency six month moratorium on data center building permits in the unincorporated county. The commissioners pointed to the Spokane Valley and Rathdrum Prairie Aquifer, a federally designated sole source aquifer since 1978. It supplies drinking water to more than 600,000 people. Resolution 2025-23 KHQ After it lapsed at the end of August 2025, the commissioners adopted Ordinance 620 on October 2, 2025. That ordinance wrote county code section 8.5.138. It made a data center a conditional use with its own standards. Kootenai County Code 8.5.138 Spokane Public Radio on the Kootenai County ordinance | A new data center or a modification to an existing one in the unincorporated county needs a conditional use permit. Data centers 1) are allowed only in the Light Industrial and Industrial zones, 2) need at least 10 acres, 3) sit back at least 150 feet from residential and agricultural zone boundaries, 4) keep mechanical equipment screened, and 5) get painted to blend in. The flat rule is that no data center may be located over the Rathdrum Prairie Aquifer. That is the permanent siting bar the commissioners had been working toward. An application has to carry 1) a site plan, 2) a landscape plan by a professional, 3) the proposed grid connection and any new power plant, 4) an energy efficiency plan, 5) verification of water rights from a source approved by the Department of Water Resources, 6) a water management plan covering cooling and discharge, 7) a noise mitigation plan by an acoustical engineer, 8) a fire protection plan approved by the fire district, 9) a wastewater plan, and 10) an aquifer recharge plan. Kootenai County Code 8.5.138 Cities inside the county, including Coeur d'Alene and Hayden, set their own rules. | In effect now with no sunset date. The Board of County Commissioners adopted Ordinance 620 on October 2, 2025. Section 9 of the ordinance makes it effective on its passage, approval, and publication in one issue of the Coeur d'Alene Press. The county recorded that publication as October 7, 2025. Kootenai County Ordinance 620 |
Illinois exempts qualified AI data center equipment from sales and use tax for as long as 20 calendar years. 20 ILCS 605/605-1025 The state also taxes no business personal property at all, because the 1970 Constitution ordered that tax abolished, so servers and racks carry no property tax anywhere in Illinois. Ill. Const. art. IX, sec. 5 The door is now shut to newcomers. Governor Pritzker directed the Department of Commerce and Economic Opportunity to stop processing new agreements as of July 1, 2026, and DCEO has posted that it will no longer take applications. Governor's office, June 5, 2026 DCEO Data Center Investment Program
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Data Center Investment Program sales and use tax exemption | The exemption covers three sets of taxes. 1) The state retailers occupation, use, service use, and service occupation taxes. 2) Every locally imposed retailers occupation tax that the Department of Revenue collects. 3) The Chicago non-titled use tax. 20 ILCS 605/605-1025(a) The list of covered property is long. It is written to catch almost everything an AI data center buys. Qualifying items include 1) servers, 2) computers, 3) data storage devices, 4) network connectivity equipment, 5) racks, 6) cabinets, 7) telecom cabling, 8) raised floor systems, 9) software, 10) battery systems, 11) emergency generators, 12) cooling systems and towers, 13) temperature controls, 14) monitoring and security systems, and 15) the building materials physically incorporated into the facility. 20 ILCS 605/605-1025(c) DCEO sets the length of each exemption certificate. That length may not exceed 20 calendar years. 20 ILCS 605/605-1025(d) DCEO puts the total value of the break at about 6.25 percent of what a project invests. Capitol News Illinois | A project needs at least 250 million dollars of capital investment over a 60 month period. That investment is counted together across the AI data center operator and its tenants. That is why colocation tenants can ride the operator's certificate. It also needs at least 20 new full time or full time equivalent jobs over 60 months from the operator and tenants combined. Those jobs must pay total compensation of at least 120 percent of the average wage paid to full time employees in the county where the facility sits. The U.S. Bureau of Labor Statistics measures that county wage. 20 ILCS 605/605-1025(c) Within 2 years after the facility goes into service it must certify to DCEO that it is carbon neutral or that it has earned one of eight named green building certifications. Those certifications are 1) BREEAM, 2) ENERGY STAR, 3) Envision, 4) ISO 50001, 5) LEED, 6) Green Globes, 7) UL 3223, or 8) an equivalent program DCEO approves. 20 ILCS 605/605-1025(c) The contractor must sign a project labor agreement approved by DCEO. The contractor and every subcontractor must meet the responsible bidder rules in Section 30-22 of the Illinois Procurement Code. 20 ILCS 605/605-1025(f) and (g) The recipient signs a memorandum of understanding with DCEO. The memorandum fixes 1) the investment and jobs targets, 2) the timeline, and 3) the repayment obligation if the targets are missed. The recipient must also report its total tax benefits by May 31 each year for the prior calendar year. Missing that report can get the certificate suspended or revoked. 20 ILCS 605/605-1025(d) and (h) | Closed to new applicants. DCEO stopped processing applications on July 1, 2026 under the Governor's June 5, 2026 directive. Its program page now says so in plain terms. DCEO Governor's office Agreements signed before July 1, 2026 are honored and untouched. Croke Fairchild Duarte and Beres The statute carries its own end date on top of the pause. I read the enrolled text of Public Act 104-468, the revenue half of the fiscal year 2027 budget. It amended this section effective June 16, 2026. The amended section bars DCEO from issuing any new certificate after July 1, 2029. Certificates already in effect on that date are left alone. Public Act 104-0468, Section 70-5 |
| Data center construction worker wage credit | An income tax credit worth 20 percent of the wages paid to the construction workers who build a qualifying AI data center in an underserved area. The credit runs against the taxes imposed under subsections (a) and (b) of Section 201 of the Illinois Income Tax Act. 20 ILCS 605/605-1025(a) and (b) DCEO The credit itself sits at Section 229 of the Illinois Income Tax Act. If the credit comes out bigger than the tax bill for the year, the excess carries forward to the 5 taxable years after the excess credit year. 35 ILCS 5/229 | The project has to hold a certificate under the Data Center Investment Program. It also has to sit in an underserved area as the statute defines it. Wipfli DCEO reports to the Governor and the General Assembly every year. The report covers 1) each recipient, 2) the location, 3) the estimated value of the credit, 4) the jobs pledged, and 5) whether the site is in an underserved area. 20 ILCS 605/605-1025(e) | Still on the books for projects that already hold certificates. It is out of reach for anyone new. That is because the credit rides on a Data Center Investment Program certificate. DCEO stopped processing new agreements on July 1, 2026. DCEO |
| Electricity excise tax exemption for enterprise zone and High Impact Business sites | The electricity excise tax does not reach electricity used by a business enterprise certified under Section 9-222.1 or Section 9-222.1A of the Public Utilities Act. The exemption applies for the period and to the extent DCEO specifies. Those two sections are the enterprise zone and High Impact Business utility tax exemptions. 35 ILCS 640/2-4(c) Without an exemption the tax runs on a sliding scale. It starts at 0.330 cents per kilowatt hour on the first 2,000 kilowatt hours a month. It falls to 0.202 cents per kilowatt hour above 20,000,000 kilowatt hours. A self assessing purchaser instead pays 5.1 percent of the purchase price. 35 ILCS 640/2-4(a) Illinois Department of Revenue | Nothing here is AI data center specific. The facility has to sit in a certified Illinois enterprise zone or win High Impact Business certification from DCEO. Each of those carries its own investment and jobs thresholds. 220 ILCS 5/9-222.1 A Data Center Investment Program certificate on its own does not exempt electricity purchases. 35 ILCS 640/2-4(c) | Active. The pause announced on June 5, 2026 reaches only the Data Center Investment Program. It does not touch the excise tax exemption. Governor's office |
| No business personal property tax plus local real property abatement authority | Illinois taxes real property and nothing else. Servers, racks, and other business equipment carry no property tax anywhere in the state because the 1970 Constitution ordered the business personal property tax abolished. Ill. Const. art. IX, sec. 5 On the land and buildings side, any local taxing district may abate its own share of the property taxes on a commercial or industrial project. That runs for as long as 10 years. The abated taxes for all districts combined are capped at 4 million dollars for any one project. A commercial or industrial development of at least 500 acres sits on a bigger tier. That tier runs as long as 20 years with a combined cap of 12 million dollars. 35 ILCS 200/18-165 | The equipment exemption is automatic statewide. There is nothing to apply for. Ill. Const. art. IX, sec. 5 A real property abatement takes a vote of each participating taxing district. A company negotiates district by district and can end up with a patchwork. 35 ILCS 200/18-165 | Active. Both the constitutional exemption and the local abatement authority are untouched by the 2026 pause. That pause reaches only the Data Center Investment Program. Governor's office |
| Quantum computing campus exemptions that reach data centers | Facilities on a state designated quantum computing campus get three kinds of benefits. 1) Exemptions on building materials. 2) Exemptions from the utility taxes on electricity, gas, and telecommunications. 3) Income tax credits. 20 ILCS 605/605-1115 35 ILCS 5/241 The electricity piece shows up in the excise tax law itself. That law carves out electricity used at a quantum computing campus. 35 ILCS 640/2-4 The statute names data centers among the facilities that may sit on a campus. So an AI data center serving quantum work can ride these benefits. Illinois quantum legislation summary | The facility has to locate on a DCEO designated quantum computing campus. The statute defines that campus as a contiguous area in Illinois. The area houses quantum operators, research facilities, data centers, and related manufacturers. 20 ILCS 605/605-1115 | Active. It was enacted in 2024. The 2026 pause leaves it untouched. That pause reaches only the Data Center Investment Program. Governor's office Illinois quantum legislation summary |
County and local programs
Cook County
Cook is the center of the Illinois AI data center market, and 14 of the 34 sites holding state incentives statewide sit in Elk Grove Village alone. Capitol News Illinois The county's Class 6b classification drops the industrial assessment level from 25 percent to 10 percent, which is a cut of roughly 60 percent in assessed value. Cook County Assessor Cook County property tax incentives
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Cook County Class 6b industrial property tax incentive | Qualifying industrial property is assessed at 10 percent of market value for the first 10 years. The rate then rises to 15 percent in year 11 and 20 percent in year 12. The standard Cook County industrial assessment level is 25 percent. Cook County property tax incentives Cook County Assessor The classification runs 12 years from completion and initial assessment. It is renewable with no limit on the number of renewal periods. The property just has to keep applying and keep qualifying. If nobody renews it, the incentive phases out over the next two years. Cook County real property assessment classification ordinance Aligned won a Class 6b abatement for its Elk Grove Village campus. Data Center Dynamics Skybox markets its Elk Grove Village site as built to qualify for both the state program and the local Class 6b. Skybox Datacenters Hoffman Estates approved the Compass Datacenters campus on the former Sears headquarters site at its February 17, 2025 Village Board meeting. The village also backed a Cook County Class 6b classification for the project by ordinance. Secondary accounts place that ordinance at the February 10, 2025 meeting rather than February 17. I could not reach a primary record to settle which. Village of Hoffman Estates project page Elk Grove Village is where the state side of this concentrates. Of the 34 sites holding Data Center Investment Program agreements through 2025, 14 sit in Elk Grove Village. Four of the seven agreements signed in 2025 were there too. One of those four is a new AI data center built by Oracle. Capitol News Illinois | The property has to be new construction, substantial rehabilitation, or the industrial reuse of abandoned property. Cook County real property assessment classification ordinance The applicant must get an ordinance or resolution from the host municipality. In an unincorporated area it comes from the County Board instead. That ordinance or resolution has to do five things. 1) State that the incentive is necessary for the development to happen. 2) Describe the redevelopment objective and the intended use. 3) Confirm that an economic disclosure statement was filed. 4) Confirm an affidavit that the applicant will meet the prevailing wage requirements of Section 74-71(b). 5) Say whether a redevelopment agreement is attached. Then the Cook County Assessor has to approve the application. Cook County real property assessment classification ordinance The Village of Hoffman Estates has not published an ordinance or resolution number for its Compass Class 6b support as of August 2, 2026. The underlying document was not available through the village website. Village of Hoffman Estates project page All of these rules live in the Cook County Code of Ordinances at chapter 74, article II, division 2. That division is the classification system for assessment. Cook County Code of Ordinances ch. 74, art. II, div. 2 | Active right now. An end date is written into the code. The Cook County Board adopted ordinance amendment 26-0936 on April 16, 2026. The amended Section 74-68(a) says the incentive provisions for Class 6b and the other incentive classes expire on December 31, 2027. That expiration holds unless the County reviews them again. Cook County ordinance amendment 26-0936 Property that was granted a Class 6b classification on or before December 31, 2025 keeps it under the earlier terms. Property whose application was filed by that date and approved later keeps it too. Cook County ordinance amendment 26-0936 The county still lists Class 6b among the incentives it offers. It still calls the classification renewable. Cook County property tax incentives |
DeKalb County
Meta's AI data center in the city of DeKalb holds a 55 percent property tax abatement for 20 years through the countywide enterprise zone. DeKalb County Enterprise Zone incentives summary Shaw Local The partial assessment of the Meta property lifted the value that can be taxed in the county by 103 million dollars, and the abatement does not begin until each building is fully assessed. Shaw Local It is the incentivized Illinois AI data center furthest from Chicago. Capitol News Illinois
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| DeKalb County Enterprise Zone property tax abatement | The DeKalb County Enterprise Zone runs a high impact tier worth a 20 year abatement at 55 percent per year for capital intensive knowledge based projects. Meta got exactly that on its DeKalb campus. DeKalb County Enterprise Zone incentives summary Shaw Local Businesses in the zone also generally pick up the state sales tax exemption on building materials and an investment tax credit. DeKalb County Enterprise Zone incentives summary The abatement has real local bite. It took effect in the 2025 tax year, so taxing bodies may see their Meta revenue fall. In a separate boundary error the DeKalb Park District left the Meta campus off its taxable rolls for tax years 2022 and 2023. It lost the revenue. Northern Public Radio | To reach the 20 year 55 percent tier a project needs to hit three thresholds. 1) A minimum investment of 800 million dollars. 2) 900,000 square feet of building space. 3) 50 new jobs. The site must also sit in the Interstate Competition Market part of the zone, within 3.5 miles of the I-88 centerline. Logistics and distribution projects sit on a separate and much smaller tier. The project has to be inside the DeKalb County Enterprise Zone. It also has to meet terms set through the zone administrator and the participating local governments. DeKalb County Enterprise Zone incentives summary | Active. DCEO certified the DeKalb County Enterprise Zone effective January 1, 2016. DeKalb County Economic Development Corporation Under the Enterprise Zone Act a zone designated after the 2012 amendment runs for a term of 15 calendar years. It terminates at midnight on December 31 of the final year of that term. That carries this zone through the end of 2030. The state Enterprise Zone Board reviews it after 13 years for a possible additional 10 year designation. 20 ILCS 655/5.3 |
Kendall County
Yorkville approved three large AI data center campuses and charged the developers up front instead of granting tax breaks. Shaw Local Shaw Local July 2026 The city also settled a resident lawsuit in June 2026 by reshuffling the construction phasing rather than by paying anyone. Chicago Tribune
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Yorkville annexation and development agreements, Project Cardinal and Project Steel | No local tax abatement. The money runs the other direction. The Project Cardinal developers agreed to pay the city of Yorkville 51 million dollars up front over four years. The developers of the 540 acre Project Steel campus agreed to pay 40 million dollars. Shaw Local Of that combined 91 million dollars, 68.25 million is set to go to the school district for new buildings and expansion. Shaw Local March 2026 Yorkville also built a water use penalty framework for Project Cardinal. It fines the campus if it draws more than 71,400 gallons on any day. It also fines the campus if it averages more than 42,000 gallons per day across a billing cycle. Shaw Local The June 2026 memorandum of understanding sharpened those penalties. Chicago Tribune The city had earlier approved a 228 acre CyrusOne campus. Shaw Local | The payments depend on the developers actually closing on the land. Project Cardinal is a campus of roughly 1,037 acres. Shaw Local It was approved on November 10, 2025 by Ordinance No. 2025-78. It had to acquire seven farmland parcels totaling about 305 acres by July 1, 2026. Village of Yorkville project page On June 23, 2026 the City Council approved an amendment pushing that closing deadline to December 31, 2027. Five aldermen voted in favor and one against. Mayor John Purcell cast a sixth vote because six were needed to pass. Chicago Tribune If the developer misses the new deadline, the annexation agreement and the related agreements go null and void. They survive only if the mayor and council extend them again. Chicago Tribune The same June 23 meeting approved a conditional settlement of the resident lawsuit filed in October 2025. The settlement reorders construction so the northeast portion goes first, then the southeast, then the west. It holds the third phase until the first two are substantially complete. Chicago Tribune | Active and running on a deadline. Yorkville approved the annexation agreement on November 10, 2025 by Ordinance No. 2025-78. The city's own project page confirms the original land closing deadline of July 1, 2026 and the application to move it to December 31, 2027. City of Yorkville Project Cardinal amendment page The City Council granted that extension on June 23, 2026. The agreements now stay alive through the end of 2027. They go void if the developer never closes on the land. Chicago Tribune |
Lake County
Grayslake approved a T5 AI data center campus that would be one of the largest developments in Lake County history, and the village granted no financial incentives for it. Village of Grayslake FAQ Government Technology
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Grayslake T5 data center campus development agreements | No local financial incentive. In its public FAQ the village says the approved development agreements do not provide for any financial incentive. It notes that such incentives are not unusual elsewhere. The FAQ adds that those agreements are the village's only arrangements with T5. Village of Grayslake FAQ | The campus covers as much as 472 acres along Peterson Road. It may include no more than 10,100,000 square feet of AI data center space. Approval took roughly eight months. It ran from September 23, 2024 to May 6, 2025. Zoning and site development approvals are finished. Only ordinary building permits remain. The village estimates 50 permanent jobs for every 300,000 square feet built. That works out to about 1,680 jobs at full build out. Village of Grayslake FAQ Local coverage in October 2025 called the project potentially one of the largest single development projects in Lake County history. Grayslake Mayor Elizabeth Davies put it at an 8.5 billion dollar build. T5 chief executive Pete Marin said it could reach as much as 12 billion to 18 billion dollars. Government Technology | Approved and in effect. The approvals carry no end date. Grayslake finished the campus approvals on May 6, 2025. Its FAQ, updated June 5, 2026, still describes the campus as approved with only ordinary building permits left to pull. That same June 2026 update adds a notice that impending litigation now stops the village from answering further questions about the approved AI data center campus. Village of Grayslake FAQ |
Sangamon County
The county board approved a 500 million dollar CyrusOne AI data center in April 2026. The company asked for no local incentive and leans on the state program instead. Illinois Times NPR Illinois
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Sangamon County conditional land use permit, CyrusOne data center | No local abatement. Reporting on the board vote says the developer is not asking for any incentive or any reduction in local property tax. Illinois Times The benefit comes from the state Data Center Investment Program instead. It is worth a reported minimum of 31.25 million dollars. That figure is what the DCEO rule of thumb of about 6.25 percent produces on a 500 million dollar investment. Broadband Breakfast Capitol News Illinois | The County Board approved the conditional land use permit on April 7, 2026 by a vote of 17 to 10 with one abstention. The vote followed a hearing where more than 60 people signed up to speak. NPR Illinois Broadband Breakfast | Approved and in effect, but under challenge. The County Board granted the conditional land use permit on April 7, 2026. On July 6, 2026 several Waverly residents sued Sangamon County and the County Board in Sangamon County Circuit Court. They asked for a declaration that the approval is invalid. No initial court dates have been set. Illinois Times |
Will County
Joliet approved the largest AI data center campus in Illinois in March 2026 and granted no local tax breaks for it. Shaw Local City of Joliet Capitol News Illinois City of Joliet community development memo
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Joliet Technology Center conditional annexation agreement | No local abatement and no economic incentive. The City of Joliet says flatly that it is not providing tax abatements or economic incentives to the developers. City officials project 310 million dollars in property taxes and 40 million dollars in utility taxes over 30 years. City of Joliet community development memo Those projections include 1) 677 million dollars for Joliet Township High School District, 2) 76 million dollars for Joliet Junior College, and 3) 146 million dollars for Will County. The developer committed as much as 100 million dollars toward infrastructure improvements. City of Joliet | The City Council voted 8 to 1 on March 19, 2026 to approve the conditional annexation of roughly 795 acres. The annexation agreement sets the terms for infrastructure, services, and community benefits. Shaw Local City of Joliet The project does not appear in the DCEO annual report covering 2025. Capitol News Illinois | Approved and in effect, but under challenge. The City Council approved the conditional annexation on March 19, 2026. On May 18, 2026 three residents acting as Joliet Residents For Responsible Growth filed suit at the Will County Courthouse. They asked the court to declare that approval void and of no legal effect. Completion of the first sub campus is still slated for 2028. Shaw Local |
Indiana certifies AI data centers for a sales and use tax exemption that covers the equipment and the electricity that runs it, and an award certificate can last 25 years, or 50 years for the biggest projects. Ind. Code § 6-2.5-15-14 Indiana Economic Development Corporation A city or county can stack a long property tax break on top of that, and the statute puts no cap on how long the equipment piece runs. Ind. Code § 6-1.1-10-44 Since 2025 the legislature has bolted on a quantum computing track, a fast approval path for power plants built to serve very large customers, and a small payment that future AI data centers will owe the community that permits them. HB 1601 (2025) HEA 1007 (2025) Ind. Code § 6-2.5-15-15.5
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Data Center Gross Retail and Use Tax Exemption | A certified operator pays no sales or use tax on qualifying data center equipment, and none on the energy that runs it either. The 7 percent rate comes off both. Ind. Code § 6-2.5-15-16 Indiana Economic Development Corporation Ind. Code § 6-2.5-2-2 The award certificate expires no later than 25 years after it is issued. It runs up to 50 years if the qualified investment is 750 million dollars or more. Ind. Code § 6-2.5-15-14 | The IEDC has to certify the project. The company has to reach a minimum qualified investment within five years of the award certificate. The floor is 1) 150 million dollars in counties over 100,000 people, 2) 100 million dollars in counties between 50,000 and 100,000, and 3) 25 million dollars in counties of 50,000 or fewer. Ind. Code § 6-2.5-15-13 Indiana Economic Development Corporation Ind. Code § 6-2.5-15-10 A colocation tenant rides on the certified operator's certificate if it contracts to use the facility for two years or more. Ind. Code § 6-2.5-15-9 | Active as of July 2026. I read the whole chapter section by section. There is no sunset and no application deadline in it. That means the IEDC can keep issuing certificates indefinitely. The only clock in the statute is the 25 or 50 year life of each certificate. The only scheduled look back is a fiscal impact study the IEDC owes the legislative council, starting in 2030 and every ten years after that. Ind. Code § 6-2.5-15-20 A 2025 law widened the exemption to quantum computing projects. A 2026 law attached a local payment to AI data centers that clear local permitting after June 30, 2026. HB 1601 (2025) Ind. Code § 6-2.5-15-15.5 The board was still writing new certificates well into the program's life. It approved four AI data center exemptions at a single meeting on June 25, 2025. InkFreeNews |
| Quantum and Advanced Computing Expansion of the Data Center Exemption | The same sales and use tax exemption now reaches a quantum computing research, advanced computing, and defense infrastructure network. Colocation tenants of a certified network qualify too. HB 1601 (2025) Sovos Ind. Code § 6-2.5-15-9 A network operator can hold a 50 year certificate if it invests at least 50 million dollars within three years of issuance. Ind. Code § 6-2.5-15-14 | The IEDC certifies these projects under the same chapter as AI data centers. The operator has to reach a minimum qualified investment of at least 50 million dollars within five years. Legislative Services Agency fiscal note A qualified quantum research operator also has to sign an agreement with the IEDC as a condition of the award certificate. HB 1601 (2025) Legislative Services Agency fiscal note | Enacted in 2025 as HB 1601, signed by Governor Braun, effective upon passage on May 1, 2025. HB 1601 (2025) Law360 |
| Local Option Enterprise Information Technology Equipment Property Tax Exemption | A county or municipal fiscal body can exempt servers, enterprise class networking gear, and backup power generators from personal property tax for as long as the written agreement says. The statute sets no ceiling on the term. It tells the designating body to specify the duration in the agreement. That is how Indiana deals have ended up at 20 years, 35 years, and 40 years. Ind. Code § 6-1.1-10-44 | At least 25 million dollars must be invested in real and personal property at the facility after June 30, 2012. Average wages for the people running it must be at least 125 percent of the county average wage. Ind. Code § 6-1.1-10-44 A county grant only reaches unincorporated territory. A municipal grant only reaches property inside the municipality. The county route is closed to a county that contains a consolidated city. In Indiana that means Marion County. The whole thing is discretionary with the local body. Ind. Code § 6-1.1-10-44 | Active. Indiana Economic Development Corporation |
| Local Property Tax Abatements for Data Center Projects | Cities and counties phase in property taxes on terms they negotiate. The pattern for Indiana AI data centers has been 50 percent off real property taxes for 10 years on each building. That is paired with a much longer equipment exemption under the local option statute. Journal Gazette ABC57 Some deals instead ramp the real property taxes up gradually across the 10 years. Government Technology | The local council has to designate an economic revitalization area and adopt a resolution. It cannot do either unless it first makes affirmative findings that the break is justified by 1) the investment estimate, 2) the job estimate, 3) the salary estimate, and 4) the overall benefits. Ind. Code § 6-1.1-12.1-3 Councils review compliance every year and can pull an abatement back. The Local Fort Wayne Several Indiana communities have paired the abatement with a yearly community impact payment. Government Technology | Active, and getting fought over locally. Hobart residents went to Lake Superior Court on January 20, 2026 to appeal the city's designation of more than 700 acres as an economic revitalization area and the abatements that rode on it. They argue the designation misses what the statute requires. No Data Centers Hobart Indiana |
| SEA 1 Business Personal Property Tax Overhaul | The law kills the 30 percent minimum valuation floor for new depreciable business equipment placed in service after January 1, 2025. That lets a server fleet depreciate down to a much lower taxable value instead of sticking at a third of cost forever. DMA Indiana Department of Local Government Finance It also lifts the de minimis exemption to 2 million dollars of acquisition cost per county starting with the 2026 assessment date. Allen County | This one is not an AI data center program. It applies to business personal property taxpayers generally. As first enacted SEA 1 would have raised the de minimis exemption to 1 million dollars for the 2025 assessment date. But HEA 1427 repealed that step and left the 2025 threshold at 80,000 dollars. DMA Vorys | Enacted in 2025, signed April 15, 2025, amended by HEA 1427 on May 6, 2025. DMA SEA 1 (2025) |
| EDGE Payroll Tax Credit | A refundable credit against state tax liability, sized off the payroll withholding from new jobs. Indiana Economic Development Corporation AI data centers do collect it, though the thin headcounts hold the numbers down. Good Jobs First lists 18.3 million dollars of EDGE awards inside Amazon's state package for the New Carlisle campus. That package also includes 1) 55 million dollars of Hoosier Business Investment credits, 2) 20 million dollars of redevelopment credits, and 3) 5 million dollars from the Skills Enhancement Fund. Good Jobs First | Job creation and wage commitments negotiated with the IEDC. The four AI data center items the IEDC board approved in June 2025 were sales and use tax exemption certificates, not EDGE credits. The EDGE credits approved at that same meeting went to a pharmaceutical project. InkFreeNews The credit itself sits in Ind. Code § 6-3.1-13, the Economic Development for a Growing Economy chapter. | Active. Indiana Economic Development Corporation IEDC EDGE program page |
| HEA 1007 Large Load Generation Approval and Cost Allocation | This is a ratepayer protection and permitting speed law more than an AI data center subsidy. It opens two fast IURC approval paths for new generation. One decides an expedited generation resource plan in about 90 days. The other decides a specific project serving a large load customer within 150 days. Taft It does hand a tax benefit to a different industry. That benefit is a credit against state tax liability equal to 20 percent of a qualified investment in manufacturing a small modular nuclear reactor in Indiana. HEA 1007 (2025) Taft | On the large load path the customer has to post financial assurances. Those assurances include reimbursing at least 80 percent of the project costs reasonably allocable to it, plus protections for existing customers if the load never materializes. A large load customer is one that meets three tests. It 1) has new demand topping the lesser of 150 megawatts or 5 percent of the utility's average peak demand over the last three years, 2) plans more than 500 million dollars of capital investment in Indiana, and 3) plans at least 50 full time jobs paying at or above the national average wage. Taft | Enacted in 2025, signed May 6, 2025, still in force as of July 2026. HEA 1007 (2025) Taft How the 80 percent promise plays out in practice is the live question. Advocacy groups argued in a late 2025 Indiana Michigan Power case that the utility's plan to build for Amazon and Google did not allocate costs the way the law promised. Earthjustice Utility Dive |
| HB 1210 Local Payment Condition on Future Exemption Certificates | No new benefit here. A future AI data center has to hand its host county or city an amount equal to not more than one percent of the state sales and use tax it did not pay on its electricity. The payment is calculated each calendar quarter and continues for the life of the certificate. Ind. Code § 6-2.5-15-15.5 A campus with a 500 million dollar annual power bill would owe at most about 350,000 dollars a year. The local unit decides how to spend it. Ind. Code § 6-2.5-15-15.5 IndyStar Indiana Capital Chronicle | I read the enrolled text. It takes two things to trigger the payment, both after June 30, 2026. The local unit has to issue the permit authorizing development, construction, or operation. The IEDC has to issue the specific transaction award certificate. Anything already holding a certificate is untouched. Ind. Code § 6-2.5-15-15.5 The Senate version had set a floor of at least 1 percent of both equipment purchases and electricity costs. Rewrites in the last days of the session cut the payment to roughly one fourteenth of that. They also dropped the equipment piece. Indiana Capital Chronicle A separate 2026 bill, HB 1333, would have forced a written local agreement worth at least 1 percent of the tax not paid on each equipment purchase. That bill died. Citizens Action Coalition | Enacted in 2026 and signed by Governor Braun on March 12, 2026. It was added to the code as Ind. Code § 6-2.5-15-15.5, effective July 1, 2026. Daily Journal Ind. Code § 6-2.5-15-15.5 HB 1210 (2026) |
County and local programs
Allen County
Fort Wayne gave Google two separate breaks on the same southeast side campus, a 10 year 50 percent real property tax abatement worth an estimated 55.5 million dollars and a full 40 year exemption on the business personal property. Journal Gazette WBOI
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Google Fort Wayne real property tax abatement | 50 percent off real property taxes for 10 years on each building as it goes up. That saves Google an estimated 55.5 million dollars over the first decade. Google agreed to pay Fort Wayne at least 1 million dollars in taxes a year. That rises to at least 1.2 million dollars once four buildings exist. Journal Gazette The Local Fort Wayne The same December 2023 vote also gave a full abatement of the business personal property tax for 40 years. That is the equipment side of the deal. It is why some coverage describes this as a 40 year abatement. WBOI | Approved 7 to 0 by the Fort Wayne City Council on December 22, 2023 under the code name Project Zodiac. At the time the project was still publicly described as an 850 million dollar campus for an unnamed Fortune 100 company on more than 200 acres. Google confirmed itself as the developer in April 2024 and announced a 2 billion dollar investment. WBOI Indiana Economic Development Corporation Journal Gazette The plan runs to as many as 12 buildings. Three were committed at the time of the vote. Google promised up to 200 jobs averaging about 64,993 dollars. That is roughly 125 percent of the Allen County average wage. Still, the developers listed only a little more than 30 positions at the facility itself when the council voted. The Local Fort Wayne WBOI The council reviews compliance each year and can rescind. The Local Fort Wayne | Active. The abatement runs under Ind. Code § 6-1.1-12.1. Each building has its own separate 10 year clock. So there is no single end date yet. Fort Wayne is auditing the deal rather than ending it. A council member filed three resolutions in June 2026. They ask Google to show it is meeting the benchmarks its tax breaks depend on. 21Alive News On June 16, 2026 he withdrew two of them after city development officials promised more information. The council tabled the third for three weeks. WBOI |
Boone County
Lebanon gave Meta a 10 year 50 percent real property abatement and a 35 year full personal property abatement for its campus in the LEAP district, a project Meta has since put at 10 billion dollars. WFYI Fox59 City of Lebanon groundbreaking release
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Meta Project Domino Lebanon abatements and TIF district | 50 percent off real property taxes for 10 years and 100 percent off personal property taxes for 35 years across the 1,500 acre campus in the LEAP Research and Innovation District. Meta pays a 1.5 million dollar yearly community impact payment to offset the abatements. Fox59 The council set up a new TIF district for the project. WFYI | Approved unanimously by the Lebanon City Council in November 2024. WFYI The first phase was an 800 million dollar investment. In February 2026 Meta announced the full campus at 10 billion dollars. Fox59 City of Lebanon City of Lebanon groundbreaking release | Active. The 35 year equipment piece sits under Ind. Code § 6-1.1-10-44. That statute lets the local body pick the term and sets no ceiling on it. Meta broke ground on the Lebanon campus on February 11, 2026. The package the council approved in November 2024 now has a live AI data center project under it. City of Lebanon |
Clark County
Meta's Jeffersonville campus at the River Ridge Commerce Center holds a 35 year state sales tax exemption tied to a minimum 800 million dollar investment. Indiana Economic Development Corporation The site sits inside a 6,000 acre park run by the River Ridge Development Authority, which reinvests in its own roads and utilities, and that arrangement is why local residents keep asking how much of the money reaches county services. River Ridge Development Authority WDRB
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Meta River Ridge state sales tax exemption | A 35 year data center sales and use tax exemption committed by the IEDC for the campus at the River Ridge Commerce Center in Jeffersonville. It supports a stated 100 high wage jobs. Indiana Economic Development Corporation Inside INdiana Business | Meta has to make a minimum 800 million dollar eligible capital investment under its certificate. The governor announced the project on January 25, 2024. Indiana Economic Development Corporation Construction hit 50 percent completion during 2025 with about 1,200 contractors on site. River Ridge Development Authority | Active. The 35 year term the state committed on January 25, 2024 is the only clock on this one. That is because Ind. Code § 6-2.5-15 puts no sunset on the program itself. Indiana Economic Development Corporation I found no public record that the commitment has been withdrawn or shortened since. |
Hancock County
An undisclosed hyperscale project called Project Redline holds a state sales tax exemption certificate even though the developer pulled its local rezoning request after public opposition. InkFreeNews Data Center Dynamics
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Project Redline state sales tax exemption certificate | A state sales and use tax exemption certificate the IEDC values at about 42 million dollars over the first 35 years. It is renewable for up to three more five year stretches if the recipient puts in an added minimum investment. InkFreeNews | Approved by the IEDC board on June 25, 2025 with a 1 billion dollar investment commitment by 2029. InkFreeNews Data Center Dynamics ties Project Redline to a Surge Development project in Buck Creek Township. Surge withdrew its rezoning request in May 2025 after public opposition. The IEDC would not confirm whether the certificate belongs to that same project. InkFreeNews So the land use side is unsettled. Data Center Dynamics | Live on paper and stuck on the ground. Ind. Code § 6-2.5-15 carries no sunset. No public record shows this certificate revoked. So nothing about it expires on a calendar. Surge Development withdrew its rezoning application for the more than 700 acre Buck Creek Township AI data center in May 2025. The planning commission cancelled the hearing. WRTV The county was still writing a data center overlay ordinance on June 9, 2026. That ordinance would confine AI data centers to Industrial General zoning. It would also make a developer send a letter of intent to the commissioners before anything else moves. Hancock County Data Center Advisory Committee minutes, June 9, 2026 |
Lake County
Lake County holds the state's clearest example of an AI data center incentive that simply lapsed. Hammond approved a big package for a CoreWeave project and the development agreement expired on June 30, 2026. City of Hammond Hobart went the other way in January 2026 and approved an Amazon abatement, and residents took the city to court over it. Chicago Tribune No Data Centers Hobart Indiana
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Hammond Digital Crossroads development agreement, expired | The package did three things. It 1) gave Decennial Group a 10 year phase in of property taxes on new improvements, 2) suspended 100 percent of the taxes CoreWeave would otherwise owe on equipment for 20 years, and 3) sent Hammond an annual community impact payment of up to 4 million dollars for its College Bound scholarship program. Government Technology | Approved unanimously by the Hammond Common Council in June 2025 for a planned 7 billion dollar expansion of the Digital Crossroads complex. The approval was made contingent on the developers landing an electricity deal with NIPSCO. Government Technology The city announced on July 1, 2026 that the agreement had expired. Milestones were missed by the June 30, 2026 deadline, after two extensions. The city said there would be no third. City of Hammond NWI Times | Expired on June 30, 2026 and not renewed. The milestones and obligations set for that deadline were not satisfied. Two extensions had already been used. The city said flatly that no additional extension of the current agreement would be offered. City of Hammond |
| Hobart Amazon Data Services real property tax abatement | A 10 year real property tax abatement on Amazon Data Services investments, paired with a community enhancement agreement. Chicago Tribune The mayor says the company pays the city 47 million dollars up front. He wants to put that money into infrastructure. Panorama Now No Data Centers Hobart Indiana | Approved by the Hobart City Council on January 7, 2026 by a 6 to 0 vote, over organized opposition and under tight security. Chicago Tribune Panorama Now The same night the council designated more than 700 acres an economic revitalization area. Residents appealed both to Lake Superior Court on January 20, 2026. They argue the designation does not meet the statute. A separate suit over an earlier fill permit drew a preliminary injunction ruling in March 2026. No Data Centers Hobart Indiana Reported project sizes vary because the company talks in regional totals. Amazon says it plans to invest more than 15 billion dollars across Northwest Indiana, with roughly 1,100 new jobs. Local coverage has attached figures from 11 billion to 15 billion dollars to the Hobart site itself. Amazon Hobart project page NBC Chicago | Active. Hobart adopted 1) Resolution 2026-01 confirming the economic revitalization area, 2) Resolutions 2026-02 and 2026-03 granting the abatements under Ind. Code § 6-1.1-12.1, and 3) Resolution 2026-04 approving the enterprise information technology exemption agreement. The public document record for the project shows no court order vacating any of them. Hobart data center public documents |
LaPorte County
Microsoft walked away from its abatement in the city of LaPorte and now pays property taxes in full, while a separate hyperscale project elsewhere in the county holds a 35 year state sales tax exemption. WVPE Data Center Dynamics
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Microsoft LaPorte full tax payment agreement | Nothing is abated any more. Microsoft decided in January 2026 not to seek property tax relief on its roughly 1 billion dollar investment. It renegotiated so that it pays the full bill. The city takes 85 percent. The other 15 percent goes to the LaPorte school corporation for 20 years. Northwest Indiana Business Magazine South Bend Tribune | The new agreement went through both the city and the school board and was announced in the first days of March 2026. WVPE The city council also voted unanimously to allow a second Microsoft campus off Boyd Boulevard. Northwest Indiana Business Magazine WSBT | In effect since the city and the school board signed off in early March 2026. There is no abatement left to expire. Site work was set to start in April 2026. The school corporation expects its first money from the deal in 2028. The larger flow starts around 2029. WVPE |
| Project Maize state sales tax exemption certificate | A state sales and use tax exemption certificate the IEDC values at about 42 million dollars over the first 35 years. It is renewable for up to three more five year stretches if the recipient puts in an added minimum investment. InkFreeNews | Approved by the IEDC board on June 25, 2025 for an end user the agency did not name. InkFreeNews Reporting on that board meeting places Project Maize in LaPorte County. The commitment is 832 million dollars invested by 2034. The end user is still unnamed. Data Center Dynamics | Live, and the end user is no longer a mystery. Google confirmed on April 16, 2026 that it had acquired the Project Maize site at the old Federal Mogul plant at 402 Royal Road in Michigan City. Google said it would put 832 million dollars into it. WNDU Michigan City lists the project as under active development. Building permits have issued across 2025. The city has already granted tax abatements to the site owner. City of Michigan City The state certificate itself runs under Ind. Code § 6-2.5-15. That statute carries no sunset. |
Madison County
Madison County put a six month pause on AI data center projects in June 2026, so no new local incentive is realistically on the table there in the near term. Louisville Public Media
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Madison County data center moratorium | No incentive. A six month moratorium on data center projects that took effect the moment it was approved. A county commissioner said it could be extended. Louisville Public Media | The Madison County Planning Commission recommended the pause in June 2026, with a single no vote. The commissioners approved it unanimously on June 16, 2026. Indiana Public Radio Louisville Public Media Residents at the hearings pushed for an outright ban. The county economic development corporation opposed the pause. Indiana Public Radio | In effect now. The pause runs six months from the June 16, 2026 approval. Indiana Public Radio, June 16, 2026 So it lapses in December 2026 unless the county extends it. The planning commission voted in July 2026 to recommend stretching it to a full year. The commissioners are scheduled to take that up on August 4, 2026. Indiana Public Radio |
Marion County
Marion County is where the state incentive and local resistance are running into each other. An undisclosed hyperscale project holds a state exemption certificate while the Indianapolis council moved in July 2026 toward a moratorium on new AI data centers. InkFreeNews Indiana Public Media
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Project Flo state sales tax exemption certificate | A state sales and use tax exemption certificate the IEDC values at about 42 million dollars over the first 35 years. It is renewable for up to three more five year stretches if the recipient puts in an added minimum investment. InkFreeNews | Approved by the IEDC board on June 25, 2025, with a 1 billion dollar investment commitment by 2029. The agency did not name the end user. InkFreeNews Reporting on that board meeting places Project Flo in Marion County. Data Center Dynamics goes further and links it to a 468 acre facility near Indianapolis. Deep Meadow Ventures is leading that rezoning. Identifying that particular site is press inference rather than an IEDC disclosure. Data Center Dynamics | Live on paper, with no approved site behind it. Google withdrew the Franklin Township rezoning proposal for the campus that trade press ties to this code name on September 22, 2025. It announced the withdrawal at the City County Council meeting, where the petition was headed for defeat. WFYI Nothing in the public record shows the state certificate revoked. Ind. Code § 6-2.5-15 carries no sunset. So the certificate can outlive the site fight. |
| Proposed Indianapolis data center moratorium and zoning class | No incentive. This is a restriction that would pause new AI data center approvals in Marion County through December 31, 2027 while officials write zoning rules. Indiana Public Media | The Metropolitan and Economic Development Committee of the Indianapolis City County Council voted 10 to 3 on July 13, 2026 to recommend the moratorium. It also approved a new special zoning class for data centers. Indiana Public Media WFYI As of August 2, 2026 the full council had not voted. Its next meeting is August 10, 2026. The Metropolitan Development Commission would have to act after that. So the outcome is genuinely open. Indiana Public Media Google had already withdrawn a Franklin Township rezoning proposal in 2025 after opposition. WFYI WFYI, September 22, 2025 | Pending, and not law. The full City County Council votes on August 10, 2026. Even a yes there sends it to the Metropolitan Development Commission before the pause through December 31, 2027 can take effect. Mayor Hogsett has said publicly that he supports it. WFYI |
Morgan County
An undisclosed hyperscale project called Project Louie holds a state sales tax exemption certificate the IEDC values at about 42 million dollars over 35 years. InkFreeNews
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Project Louie state sales tax exemption certificate | A state sales and use tax exemption certificate the IEDC values at about 42 million dollars over the first 35 years. It is renewable for up to three more five year stretches if the recipient puts in an added minimum investment. InkFreeNews | Approved by the IEDC board on June 25, 2025, with a 1 billion dollar investment commitment by 2029. The agency did not name the end user. InkFreeNews Reporting on that board meeting places Project Louie in Morgan County. Data Center Dynamics ties it to a 391 acre parcel there, rezoned as a planned unit development in February 2025. Identifying that parcel is press reporting rather than an IEDC disclosure. Data Center Dynamics | Live, and this is the one that is actually being built. The county planning commission and the commissioners both approved the rezoning in February 2025. Google confirmed itself as the developer in October 2025. Indiana Public Media, October 22, 2025 The town of Monrovia voted 3 to 2 on March 27, 2026 to explore annexing the site. Indiana Public Media Construction started in November 2025. It has since intensified across more than 500 acres between Keller Hill Road and State Road 42. WRTV The certificate itself runs under Ind. Code § 6-2.5-15. That statute carries no sunset. |
St. Joseph County
St. Joseph County gave Amazon a 10 year 50 percent real property tax abatement and an 85 percent equipment exemption for the 11 billion dollar AI data center campus near New Carlisle. The county's economic development director put Amazon's net savings from the package at about 1.9 billion dollars. Inside INdiana Business
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Amazon New Carlisle real property tax abatement | 50 percent off real property taxes for 10 years across three parcels totaling 870 acres. On those parcels Amazon plans 16 AI data center shells of roughly 200,000 square feet each. Eight support buildings were left out of the abatement request. Good Jobs First values this piece at about 184 million dollars over the 10 years. Inside INdiana Business Good Jobs First | An economic development agreement between Amazon and the county. The redevelopment commission, the commissioners, and the county council all signed off on August 13, 2024. South Bend Tribune WVPE Inside INdiana Business The package came with a community enhancement agreement worth about 143 million dollars. It aims at parks, schools, fire departments, road work, and utility work. Inside INdiana Business WSBT The agreement also obliges the campus to carry at least 400 full time jobs. ABC57 | Active. Amazon had nearly 38 million dollars of property tax abated in the first half of 2026 alone. Four county council members wrote to the company in late June 2026. They asked it to hand some of that money back voluntarily for a homeowner property tax relief fund. WVPE The break itself is a 10 year phase in under Ind. Code § 6-1.1-12.1. |
| Amazon enterprise information technology equipment exemption | An Enterprise Information Technology Exemption lifting 85 percent of the personal property tax on the equipment inside the buildings. That gear gets swapped out on a short cycle. WSBT The county says Amazon still pays more than 722 million dollars in tax across the 35 year term. Inside INdiana Business Good Jobs First puts the tax Amazon avoids at roughly 4 billion dollars over those 35 years, about 115.6 million dollars a year. That assumes every building goes up. Good Jobs First | Granted under the local option equipment exemption. That exemption takes at least 25 million dollars of investment in real and personal property. It also takes average wages of at least 125 percent of the county average. Ind. Code § 6-1.1-10-44 In summer 2024 that county average worked out to 30.74 dollars an hour. Good Jobs First | Active. The exemption runs 35 years under Ind. Code § 6-1.1-10-44. As of mid 2026 the county had not reopened or shortened it. Council members who want money back have had to ask Amazon for a voluntary payment rather than change the agreement. WVPE |
| Amazon state sales and use tax exemption award | An IEDC agreement for sales and use tax exemptions, approved for a 50 year term. Good Jobs First now scores the whole Amazon package at about 8.28 billion dollars. That is the largest award in Indiana history and the largest Amazon has drawn from any state. Inside that total the New York Times estimated the state sales and use tax piece alone at about 4 billion dollars. Good Jobs First Chicago Tribune | Awarded under the state data center exemption. The state contract sets a minimum 800 million dollar investment. It caps eligible investment at 11 billion dollars. The IEDC transparency portal lists project 424567 with 1,079 expected jobs. Local reporting described 400 direct Amazon jobs plus roughly 600 out of state contractor jobs, both spread across years. Good Jobs First | Active. Amazon was still drawing state sales tax exemptions worth millions of dollars a year at the New Carlisle campus as of June 2026. WVPE The award runs 50 years. That is the ceiling Ind. Code § 6-2.5-15 allows. It takes a qualified investment of 750 million dollars or more to reach. |
Iowa has been paying for AI data centers longer than almost any other state. A qualifying data center business buys its computers, cooling, power gear, racking, backup fuel, and electricity free of Iowa sales and use tax, and that same equipment is exempt from property tax while the land and buildings stay taxable. Iowa Code § 423.3(95) Iowa Code § 427.1(37) Smaller projects get a partial refund instead of a full exemption. Iowa Code § 423.4(7), (8) Cities did the rest, and Altoona, Waukee, Cedar Rapids, Council Bluffs, and Davenport have layered on 20 year property tax abatements and tax increment rebates. Three recent laws narrowed all of it. House File 976 put a 10 or 15 year clock on the electricity and backup fuel exemption for anything built or added on or after June 6, 2025. BrownWinick Senate File 657 repealed the High Quality Jobs Program that funded most of the big local packages and replaced it with a program that bars a data center business by name. 2025 Iowa Acts, Senate File 657 Iowa Code § 15.504(1)(b) Senate File 2472 put a 23 year sunset on new tax increment ordinances. Ahlers Cooney
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Data center sales and use tax exemption for projects of 200 million dollars or more | Iowa sales and use tax comes off the whole build. The exemption covers 1) computers, 2) the equipment needed to run the AI data center, 3) cooling systems and cooling towers, 4) power infrastructure including exterior dedicated business owned substations, 5) backup power generation and battery systems, 6) racking, cabling, and trays, and 7) backup power generation fuel and electricity. A business that already paid the tax can claim it back instead. Iowa Code § 423.3(95) Iowa Department of Revenue The exemption on computers and equipment never expires. The exemption on fuel and electricity now runs on a clock. The electricity program below explains it. | Invest at least 200 million dollars at one Iowa location within the first six years of operation. The six years count from the day the business starts site preparation or from the start of the initial lease term. The building must be at least 5,000 square feet in the aggregate. It must also meet the sustainable design and construction standards the state building code commissioner sets under Iowa Code § 103A.8B. There is no job requirement and no wage requirement anywhere in the statute. A lessee that operates an AI data center qualifies on its own. The Department of Revenue has ruled that a property owner and a colocation tenant at the same site can each qualify. Each one has to clear the 200 million dollar bar separately. Eversheds Sutherland The business registers with the Department of Revenue. It files an annual report by January 31 describing what it bought in backup fuel and electricity. The first report is due February 2, 2026. Iowa Department of Revenue Fall more than 20 percent short of the 200 million dollars inside the six year window and the business loses the exemption. It also owes back every dollar of tax it avoided, plus penalty and interest. Iowa Code § 423.3(95)(e) | Active. Amended June 6, 2025 by House File 976. The 2026 session left it untouched and adjourned May 3, 2026. BrownWinick Iowa Capital Dispatch |
| Electricity and backup fuel sales tax exemption with time limits added in 2025 | A qualifying large AI data center buys electricity and backup power generation fuel with no Iowa sales tax on it. If the business was already operating on the property before June 6, 2025 the exemption has no end date. The rule is different for construction finished on or after June 6, 2025, and for additions made to existing property on or after that date. There the exemption runs 10 years if the property sits entirely or partly inside a city of more than 30,000 people by the most recent decennial census. It runs 15 years if the property does not. That 15 year term covers small towns and unincorporated county land alike. Iowa Code § 423.3(95)(a)(2), (3) Nyemaster Goode | The same 200 million dollar qualification as the main exemption, including registration and the annual energy purchase report. Iowa Department of Revenue The statute says that after January 31, 2026 a data center business has to hand over an exemption certificate the Department issues each year once the annual report is filed. That certificate does not exist. As of August 2, 2026 the Department's published guidance still says special exemption certificates for data centers are not currently available and are not currently required. The guidance tells buyers to use the general energy certificate on form 31-113 and the general sales tax certificate on form 31-014 instead. Iowa Department of Revenue So the practical answer today is that the statutory certificate step is dormant, not that anyone is out of compliance. | Active. The 10 year and 15 year limits were added June 6, 2025 by House File 976. BrownWinick |
| Partial sales tax refund for data centers investing 10 million to under 200 million dollars | A refund of half the Iowa sales and use tax paid on qualifying AI data center purchases, capped at 5 percent of the sales price. Local option sales tax is not refunded. The refund lasts 10 years for an investment of at least 10 million dollars in new construction, or at least 5 million dollars in a rehabilitated building. That 10 year tier runs up to just under 136 million dollars. Above 136 million dollars and below 200 million dollars the refund lasts 7 years. Iowa Code § 423.4(8) | Invest at least 10 million dollars for new construction, or 5 million dollars for a rehabilitated building, within the first six years of operation. The investment has to stay under 200 million dollars either way. The building has to be at least 5,000 square feet. It also has to meet the state sustainable design and construction standards. Any lease has to run at least five years. Registration with the Department of Revenue is optional here. There is no annual report. File the claim on an IA 843 no later than one year after the purchase and within three months after the refund year closes. Include an affidavit certifying the qualifications were met. Iowa Department of Revenue | Active. Unchanged by House File 976 or by the 2026 session. Iowa Department of Revenue |
| Partial sales tax refund for small data centers investing 1 million to under 10 million dollars | A refund of half the Iowa sales and use tax paid on fuel used to create heat, power, or steam and on the electricity the computers and equipment consume. The refund is capped at 5 percent of the sales price and covers the first five years of operation. Equipment purchases are not covered here, only energy. Local option sales tax is not refunded. Iowa Code § 423.4(7) | Invest at least 1 million dollars and under 10 million dollars in a newly constructed building, or under 5 million dollars in a rehabilitated one. Make the investment within the first three years of operation. Any lease has to run at least five years. The building has to meet the state sustainable design and construction standards. Registration is optional. There is no annual report. File on an IA 843 no later than one year after the purchase and within three months after the refund year closes. Include a supporting affidavit. Iowa Department of Revenue | Active. Unchanged by House File 976 or by the 2026 session. Iowa Department of Revenue |
| Property tax exemption for data center computers and equipment | Everything a qualifying data center business uses other than land, buildings, and other improvements is exempt from property tax. That reaches 1) the computers and equipment needed to run the business, 2) cooling systems and cooling towers, 3) power infrastructure including exterior dedicated business owned substations and power distribution systems not assessed under Iowa Code chapter 437A, 4) racking, cabling, and trays, and 5) backup power generation and battery systems. The land, the buildings, and the improvements stay fully taxable. That is why the local abatements described below still matter. Iowa Code § 427.1(37) | The business has to be a data center business that meets the requirements of Iowa Code § 423.3(95), the 200 million dollar track. So the property tax break rides on the sales tax qualification. The owner files form 54-009 with the city or county assessor by February 1 of the first year it claims the exemption. The exemption starts with the assessment year the qualifying investment or construction is first assessed, or with the assessment year the initial lease term begins. House File 976 added that lease trigger in 2025. That change confirmed the exemption reaches leased property. Nyemaster Goode | Active. Amended June 6, 2025 by House File 976 to add the lease trigger. Iowa Code § 427.1(37) Nyemaster Goode |
| Web search portal sales tax and property tax exemptions | This is a parallel set of exemptions written for a web search portal business rather than a data center business. It covers the same computers, cooling, power infrastructure, racking, cabling, backup generation, backup fuel, and electricity. It comes with a matching property tax exemption on everything other than land, buildings, and improvements. House File 976 put the same 10 year and 15 year clock on fuel and electricity here for construction finished or additions made on or after June 6, 2025. Iowa Code § 423.3(92), (93) Iowa Code § 427.1(35), (36) | The purchaser has to provide a web search portal. It has to keep an Iowa physical location used to operate and maintain the portal. It has to invest at least 200 million dollars in Iowa within the first six years of operation. Both tracks also require that the business bought, optioned, or leased its Iowa land no later than December 31, 2008. In practice that fences them off for the earliest entrants and closes them to anyone arriving now. Each track lets the business count the Iowa investment of its affiliates toward the threshold. Registration and the annual energy purchase report filed by January 31 apply here too. Iowa Code § 423.3(92), (93) Iowa Department of Revenue | Active. The 10 year and 15 year fuel and electricity limits were added June 6, 2025 by House File 976. Iowa Department of Revenue Nyemaster Goode |
| Business Incentives for Growth program, closed to data centers | A negotiated package that can combine 1) an investment based income tax credit, 2) sales and use tax refunds, and 3) a local property tax exemption of up to 10 years on the value improvements add to real property. The total award cannot exceed 5 percent of the qualifying investment, or 7.5 percent if the project sits in a rural county. A rural county means a county of 20,000 people or fewer by the most recent decennial census. The whole program is allocated no more than 50 million dollars of tax credits a year. 2025 Iowa Acts, Senate File 657 BrownWinick None of that is available to an AI data center, because the statute disqualifies one. The repealed High Quality Jobs Program it replaced was both bigger and open. It ran to 10 percent of project cost under a 68 million dollar annual cap, with local property tax exemptions of up to 20 years. Iowa AI data centers leaned on it hard. The state board used it to approve 1) a 20.3 million dollar sales tax rebate for a Microsoft project in West Des Moines, 2) a 19.8 million dollar sales and use tax refund for a Google expansion in Council Bluffs, and 3) a 161 million dollar local property tax exemption for a Meta affiliate in Davenport. DMA Freedom Foundation Data Center Knowledge Innovation Iowa | An eligible business has to 1) be primarily engaged in advanced manufacturing, bioscience, insurance and finance, or technology and innovation, 2) get its host community to approve the project by ordinance or resolution, and 3) meet job creation, job retention, and wage and benefit thresholds negotiated with the Iowa Economic Development Authority. The same subsection then says the business shall not be a data center business, a retail business, or a business with a cover charge. It defines data center business by pointing straight at Iowa Code § 423.3(95), the 200 million dollar sales tax track. So the exact facilities that qualify for Iowa's sales tax exemption are the ones the statute locks out of this program. Iowa Code § 15.504(1)(b) The board could not authorize any award before January 1, 2026. It may 1) claw back incentives, 2) deny other state tax incentives to a recipient, and 3) reduce or cancel an award after a closure or mass layoff. 2025 Iowa Acts, Senate File 657 Governor Reynolds | Active for the industries it names and closed to AI data centers by statute. Iowa Code § 15.504 Enacted June 6, 2025, with awards allowed starting January 1, 2026. BrownWinick |
| Major Economic Growth Attraction program, closed to data centers | A negotiated package for projects above 1 billion dollars. It offers a refundable investment tax credit of up to 5 percent of the qualifying investment. It also offers a withholding tax credit of up to 3 percent for eligible new jobs. Iowa Economic Development Authority The program is codified as the Major Economic Growth Attraction Program at Iowa Code § 15.490. | The business has to invest at least 1 billion dollars. It also has to be primarily engaged in advanced manufacturing, biosciences, or research and development. An AI data center is none of those. Awards are capped at two eligible businesses total. No award can be made after January 1, 2027. Iowa Economic Development Authority BrownWinick Senate File 2252 in 2026 would have opened the program to a National Football League franchise building a stadium. It died when the session adjourned May 3, 2026. BillTrack50 The statute says it outright. Under Iowa Code § 15.492(1)(d) the business shall not be a data center business, a retail business, or a business where a cover charge or membership requirement keeps certain people out. The same section requires a site larger than 250 acres. It also requires approval of the project by the community by ordinance or resolution. | Active for its named industries and not available to AI data centers. Iowa Economic Development Authority Iowa Code § 15.492(1)(d) |
County and local programs
Dallas County
Waukee gave Apple a 20 year abatement on the AI data center buildings, which 2017 press accounts described as a 71 percent abatement worth about 188 million dollars. City of Waukee Des Moines Register KCCI
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| City of Waukee property tax abatement for the Apple data centers | Under a 2017 economic development agreement the city abates property tax on the AI data center buildings only, for 20 years. The city and Dallas County then signed a minimum assessment agreement with Apple in 2023. It set a minimum taxable value of 52.2 million dollars per data center for the abatement period. So the buildings are taxed on that floor rather than on full value. Each building returns to full valuation when its abatement ends. The agreement also created a Public Improvement Fund the city has spent on projects such as Triumph Park. City of Waukee Press accounts at the time called it a 71 percent abatement over 20 years worth about 188 million dollars. That sat inside a combined state and local package reported at roughly 208 million dollars by KCCI and 213 million dollars by USA Today. Des Moines Register KCCI USA Today | Apple committed to build the AI data centers in Waukee under the 2017 agreements with the city and the state. It also committed to create at least 50 high quality jobs meeting the requirements of a state incentive program. City of Waukee | Active. Dallas County left the abatement out when it valued the AI data centers. It then corrected the valuation to apply it. That correction cut the city's planned revenue by 3.4 million dollars for the current fiscal year. City of Waukee The city does not publish the date the 20 year term ends. |
Linn County
Cedar Rapids approved a tax increment rebate worth up to 529 million dollars for the QTS campus and an urban renewal area for Google. The Gazette Corridor Business Journal Meanwhile the county government went the other way, adopting one of the strictest AI data center zoning ordinances in the country in February 2026 and then pausing new rezonings in unincorporated areas. Linn County KCRG Inside Climate News
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| City of Cedar Rapids tax increment rebate for the QTS data center campus | Under a development agreement the council approved January 28, 2025, the city makes 20 annual rebate payments per project phase. Each payment equals 70 percent of the tax increment the phase creates. The city estimates 529 million dollars rebated out of roughly 1 billion dollars in total property taxes generated. The agreement adds a 20 year rebate of 75 percent of the franchise fees the city collects through Alliant Energy for each AI data center built. Corridor Business Journal The Gazette The rebate works through tax increment financing under Iowa's urban renewal law, Iowa Code chapter 403. | QTS has to invest at least 750 million dollars across a minimum of two phases. It has to start the first phase within three years of the effective date and the second within three years of finishing the first. It also pays 300,000 dollars a year per phase into a city community betterment fund, capped at 18 million dollars across all phases. City officials said the project supports about 15 long term jobs per phase plus 500 or more construction jobs over a 10 year build. City of Cedar Rapids Corridor Business Journal | Active. The council approved the development agreement on January 28, 2025. It then voted unanimously in December 2025 to amend it. The amendment caps the campus at seven phases of at least 300,000 square feet and 250 million dollars each, for up to 1.75 billion dollars. CBS2 Iowa |
| City of Cedar Rapids urban renewal area and development agreement for the Google data center | The council authorized development agreement terms in February 2024 with Heaviside LLC, later confirmed as Google, for a project first described at 576 million dollars. It moved an urban renewal area ordinance for the site in January 2025. Corridor Business Journal Google publicly confirmed the Cedar Rapids campus on May 30, 2025 as part of the 7 billion dollar two year Iowa investment covering Cedar Rapids and Council Bluffs. Des Moines Register DatacenterDynamics The urban renewal area is what lets the city capture and rebate the tax increment under Iowa Code chapter 403. | Performance terms are set in the city development agreement and in the state award. The state award was applied for under the High Quality Jobs Program before Senate File 657 repealed that program effective December 31, 2025. Section 22 of the act says an agreement entered into on or before December 31, 2025 stays valid and continues on its own terms. So the award is not disturbed. 2025 Iowa Acts, Senate File 657 | Active. The campus is under construction. In June 2026 Google asked the city for a temporary certificate of occupancy on one AI data center building. The city is working out how to handle heat and steam plumes near the Eastern Iowa Airport. KCRG |
| Linn County data center zoning ordinance and rezoning moratorium | This one is a condition on development rather than an incentive. It is the main thing that changed in Linn County in 2026. The Board of Supervisors adopted an AI data center ordinance on February 18, 2026 for unincorporated Linn County. The ordinance creates an EU-3 Large Scale Data Center zoning district. A large scale project has to 1) complete a water study showing there is enough water, 2) sign a water use agreement with the county that includes tracking and reporting, and 3) sign an economic development agreement setting out community benefits. Linn County Inside Climate News | The Board then approved an 18 month moratorium on accepting new applications to rezone property to EU-3, reported July 1, 2026. The pause lets it run technical studies and update its land use rules. KCRG Linn County None of it reaches inside a city, because the county has no zoning jurisdiction there. So the Cedar Rapids QTS and Google sites are untouched. | In force. The moratorium took effect July 1, 2026 and runs through January 1, 2028. Linn County |
Polk County
Microsoft in West Des Moines has drawn tens of millions in tax increment financed public improvements, and Meta in Altoona holds 20 year property tax abatements across a five building campus. West Des Moines Chamber Des Moines Register 2014 Des Moines Register Construction Dive
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| City of West Des Moines tax increment financing for Microsoft data centers | West Des Moines has funded public improvements through tax increment financing to support Microsoft's AI data center campuses, reported at close to 200 million dollars across the projects. Des Moines Register on Project Ruthenium A 2014 agreement paired a 20.3 million dollar state sales tax rebate with roughly 87 million dollars of city infrastructure work. Des Moines Register Freedom Foundation The city approved a development agreement for Microsoft's sixth AI data center in 2024. Des Moines Register on Project Ruthenium West Des Moines Chamber | Negotiated development agreements under Iowa's urban renewal law, Iowa Code chapter 403. They carry minimum assessed value commitments that create the increment the city then captures. Des Moines Register | Active. The council approved the sixth campus, Project Ruthenium, on May 20, 2024. That build is scheduled to start construction in 2026 and finish in 2028. AOL The city's community and economic development director said in May 2025 that AI data center campuses now carry more than 10 percent of the West Des Moines tax base. Wisconsin Public Radio |
| City of Altoona property tax abatements for the Meta data center campus | Altoona abated property taxes on Meta's AI data centers for 20 years under a run of agreements, one per construction phase. On the fifth building Meta pays the city about 3 dollars per square foot, roughly 3 million dollars a year for 20 years. The Des Moines Register put that at about 40 percent below a full tax bill. Des Moines Register Construction Dive | Negotiated city development agreements tied to each construction phase. Construction Dive The 20 year term traces to the value added property tax exemption in the High Quality Jobs program. That exemption let a community exempt the added value of improvements for up to twenty years. Iowa Code 15.332, as it stood before repeal Meta’s Altoona entity Siculus LLC took a High Quality Jobs property tax exemption in May 2019. Innovation Iowa Senate File 657 repealed that program effective December 31, 2025 and left awards already made in place. 2025 Iowa Acts, Senate File 657 The general city revitalization chapter could not have produced this term, since it caps an exemption at ten years, or fifteen in one case. Iowa Code chapter 404 | Active. The 20 year agreements are still running. The city council's July 20, 2026 vote to pause tax abatement covered only the residential program and left existing abatements in place. Business Record |
Pottawattamie County
Council Bluffs has backed Google's campus with a local rebate and abatement package. The package started at 100 percent and stepped down to 60 percent, and it is estimated at 48 million dollars over 20 years. Google said in May 2025 that it would expand there as part of a 7 billion dollar Iowa investment. Good Jobs First DatacenterDynamics
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| City of Council Bluffs urban renewal and urban revitalization incentives for Google | Google's Council Bluffs operation is one of its largest anywhere. When the city council first voted on the package, the company's name was kept confidential. The deal ran a local tax rebate and abatement at 100 percent for the first two years, stepping down to 60 percent in later years. The property tax abatements were valued at about 48 million dollars over 20 years, alongside 1.4 million dollars of High Quality Jobs tax credits. Good Jobs First The city runs tax increment financing under Iowa Code chapter 403 for projects in designated areas. It also runs property tax abatement under Iowa Code chapter 404 in those areas. City of Council Bluffs The state board separately approved a 19.8 million dollar sales and use tax refund for a Google expansion. Data Center Knowledge Google announced on May 30, 2025 that it would put another 7 billion dollars into Iowa over two years. The plan covers the Council Bluffs expansion and a new Cedar Rapids campus. DatacenterDynamics A Good Jobs First report picked up in June 2025 put Iowa's AI data center tax credits at 150 million dollars a year or more statewide. Good Jobs First | A project has to 1) sit inside a designated urban renewal or urban revitalization area, 2) commit to a minimum assessed valuation at completion, and 3) apply for abatement by February 1 after the improvements are finished. City of Council Bluffs | Active. Both programs are still open. Neither carries a published sunset date. City of Council Bluffs I could not verify from a primary source when Google's original 20 year abatement ends. |
Scott County
Davenport approved a 60 percent property tax exemption over 20 years worth about 161 million dollars for a Meta affiliate planning an 800 million dollar campus, and more than two years later the ground is still empty. Innovation Iowa Quad-City Times
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| City of Davenport property tax exemption for the Meta data center | A 60 percent local property tax exemption over 20 years, valued at about 161 million dollars, for Vemerald LLC. Vemerald is a Meta affiliate developing an 800 million dollar AI data center campus on a 328 acre site in Davenport. The Davenport City Council sent the incentive to its May 8, 2024 meeting after a unanimous committee vote. KWQC The Iowa Economic Development Authority board signed off later that month through the High Quality Jobs Program, by which point the city had approved it. Innovation Iowa DatacenterDynamics Senate File 657 repealed the High Quality Jobs Program effective December 31, 2025. Section 22 of the act keeps any agreement entered into on or before that date valid and running on its own terms. Section 23 says the repeal does not adversely affect a tax incentive issued, awarded, or allowed before December 31, 2025. The Davenport award survives. 2025 Iowa Acts, Senate File 657 | The project committed to 35 jobs at 28.76 dollars an hour. Groundbreaking was planned for the first quarter of 2025 and construction was scheduled to finish in the fourth quarter of 2027. Innovation Iowa WQAD That schedule has slipped badly. The Quad-City Times reported in February 2026 that no ground had been broken. Meta had said nothing about its plans and the land was still empty. Quad-City Times WQAD | In force. The exemption is the value added property tax exemption at Iowa Code § 15.332. The Code now carries that section as repealed effective December 31, 2025, with existing rights preserved. I could not verify from a primary source whether the agreement sets a construction deadline Meta has now missed. |
Kansas gave AI data centers a 20 year exemption from state and local sales tax in 2025 through Senate Bill 98, and a project earns it by investing at least 250 million dollars and creating 20 jobs. 2025 Kan. Sess. Laws ch. 124 K.S.A. 2025 Supp. 74-50,332 Cities and counties stack property tax abatements on top through industrial revenue bonds, and the largest approved deal so far is the Beale Infrastructure campus in De Soto, where the city council signed a development agreement in August 2025. Beale Data Center Electricity is the one thing the state will not discount, since SB 98 also barred qualified data centers from the economic development electric rate. K.S.A. 66-101j The real fight in Kansas is now local, with councils and county commissions in Johnson, Sedgwick, and Reno counties deciding project by project. KMUW Johnson County Post KWCH
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| SB 98 qualified data center sales tax exemption | A qualified firm pays no state or local sales or compensating use tax for 20 years on the cost of building and running the AI data center. K.S.A. 2025 Supp. 74-50,332 Eligible costs run wide. They take in 1) land, 2) buildings, 3) site improvements, 4) lease payments, 5) permitting, 6) engineering and design, 7) data center equipment such as servers, networking gear, cooling systems, water conservation systems, software, and backup generators, and 8) the labor services to install, apply, repair, service, alter, or maintain that equipment. K.S.A. 2025 Supp. 74-50,331 Husch Blackwell Contractors buy through a project exemption certificate. The exemption reaches purchases made on or after July 1, 2025. Kansas Department of Revenue Notice 25-03 The 20 year clock runs from the day the AI data center starts operating. The exemption itself sits in the state sales tax exemption list at K.S.A. 79-3606(xxxx). K.S.A. 2025 Supp. 74-50,333 K.S.A. 79-3606(xxxx) Power is the gap. The statute leaves the cost of electricity out of eligible costs. So the biggest operating expense a large AI data center carries is still fully taxed. 2025 Kan. Sess. Laws ch. 124 | Invest at least 250 million dollars in eligible costs in the aggregate by the fifth year of operations. Create and hold at least 20 new jobs at the site within two calendar years after operations start. K.S.A. 2025 Supp. 74-50,332 The statute sets no wage floor. The Department of Commerce still describes the jobs as full time positions held by Kansas residents. Kansas Department of Commerce A firm also has to 1) begin construction within 10 years of signing the agreement with the Secretary of Commerce, 2) buy electricity for 10 years from the public utility certified to serve the territory, and 3) commit to water conservation, reuse, and replacement practices. K.S.A. 2025 Supp. 74-50,332 Approval from the Kansas Fusion Center Oversight Board comes first. That board can turn down a project it reads as a threat to critical state infrastructure. K.S.A. 2025 Supp. 74-50,334 After that the firm applies to the Department of Commerce, signs an incentive agreement, and gets a certification letter. Each applicant entity pays a nonrefundable application fee of 1,000 dollars. Kansas Department of Commerce Firms that develop, operate, or lease a qualified data center all count. So a colocation structure fits. Husch Blackwell The deal carries strings on the back end. The firm has to cooperate with audits. Its award is disclosed to the state economic development incentive database. The Secretary reviews the project every five years. If the firm breaches and does not cure within 120 days, the Secretary can claw back, terminate, or suspend the exemption. K.S.A. 2025 Supp. 74-50,332 | Active. Governor Laura Kelly signed the bill on April 24, 2025. It took effect July 1, 2025. SB 98 bill history 2025 Kan. Sess. Laws ch. 124 No sunset closes the door on new applications. The 2026 session adjourned sine die on April 11, 2026 without touching the program. Senate Bill 526 was introduced March 4, 2026 and referred to the Committee on Commerce the next day. It died in committee. It would have limited the exemption to land that was zoned industrial or manufacturing or was unzoned on July 1, 2025. SB 526 SB 526 bill status, Kansas Legislature API Commerce has not published the names of any certified firms as of July 19, 2026. Awards under the program are disclosed through the Kansas Transparency Database Explorer, which Commerce updates twice a year. That is where the first certifications will surface. Kansas Transparency Database Explorer |
| Commercial and industrial machinery and equipment property tax exemption | All commercial and industrial machinery and equipment is exempt from every Kansas property and ad valorem tax. The exemption covers equipment bought or leased after June 30, 2006, or moved into Kansas after that date to start or expand a business. K.S.A. 79-223 Servers, racks, and the rest of the hardware inside an AI data center sit in that class. So new equipment generally pays no Kansas personal property tax at all. Kansas Department of Revenue | The equipment has to come from a qualified purchase or lease made after June 30, 2006, or be transported into the state after that date for a new or expanding business. There is no application, no investment minimum, and no job requirement. Transactions structured to dodge tax are penalized. Electric generation facilities using renewable resources are carved out of the definition. K.S.A. 79-223 | Active. The exemption has no expiration for equipment acquired after June 30, 2006. K.S.A. 79-223 |
| Industrial revenue bond property tax exemption and local economic development abatement | Property financed with city or county industrial revenue bonds is exempt from property tax for up to 10 calendar years after the year the bonds are issued. The exemption reaches only the part that bond proceeds paid for. K.S.A. 79-201a Second Bond projects also usually carry a sales tax exemption on construction materials. Kansas Department of Revenue Kansas Department of Commerce Cities and counties can instead grant the constitutional economic development exemption for up to 10 years. That one is limited to manufacturing, research and development, and interstate warehousing. So Kansas AI data center deals go the industrial revenue bond route. Kansas Department of Revenue Kan. Const. art. 11, sec. 13 | A city or county issues the bonds and approves each project on its own, usually after a public hearing. Payment in lieu of taxes terms are negotiated locally, as they were in the De Soto campus agreement. De Soto development agreement K.S.A. 12-1740 through 12-1749 This is the main local lever in Kansas. The statewide machinery exemption has already stripped most personal property tax off the server gear itself. K.S.A. 79-223 Legislators are starting to look at the cost. A legislative post audit reviewed on July 8, 2026 found Kansas counties issued 18.3 billion dollars in industrial revenue bonds between 2010 and 2024. That left roughly 1.1 billion dollars in property taxes uncollected. Kansas Reflector | Active. Cities and counties use it project by project. Kansas Department of Revenue |
| High Performance Incentive Program | A certified firm gets a Kansas income tax credit worth 10 percent of qualified capital investment above 50,000 dollars. The floor rises to 1 million dollars in Douglas, Johnson, Sedgwick, Shawnee, and Wyandotte counties. K.S.A. 79-32,160a(e) For projects placed in service on or after January 1, 2021 the firm can transfer up to half the credit to anyone. A transferee carries any excess forward until the 16th tax year after the credit was first claimed. K.S.A. 79-32,160a(f) Certified firms also pick up a sales tax project exemption and a training tax credit. Kansas Department of Commerce Kansas Department of Revenue | A firm must 1) pay above average wages for similar firms in the same area and industry code, 2) spend real money on employee training, and 3) either be a manufacturer or show that most sales go to out of state customers or to Kansas manufacturers or government buyers. Kansas Department of Revenue An AI data center clears this only if it beats the wage standard and passes the out of state sales test. Certification runs through the Department of Commerce under K.S.A. 74-50,131 before any credit is claimed. K.S.A. 79-32,160a(e) Kansas Department of Commerce The project description form has to reach the Department of Commerce before the firm makes any formal investment commitment. So the paperwork comes before the spending. Site Selection Group | Active. It is a general business program rather than an AI data center program. Kansas Department of Commerce |
County and local programs
Johnson County
The busiest AI data center market in Kansas by a wide margin. De Soto approved an industrial revenue bond and payment in lieu of taxes package for the Beale Infrastructure campus in August 2025, and construction started in April 2026. City of De Soto KCUR Digital Realty has proposed a second and much larger campus at Astra Enterprise Park and has not asked De Soto for anything yet. Johnson County Post Gardner told Beale it would grant no incentives and Beale walked away, while Edgerton approved a warehouse conversion on appeal from a developer that never requested an abatement. Johnson County Post KSHB City of Edgerton
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| De Soto industrial revenue bond and payment in lieu of taxes package with Mount Sunflower Properties LLC | The City of De Soto approved an industrial revenue bond framework with a ceiling of 50 billion dollars in private investment that could qualify for incentives over roughly 10 years. That ceiling is not the project cost and not a public outlay. The city only issues bonds that the developer and its lenders repay. KCTV5 Johnson County Post The campus itself is estimated at about 3.1 billion dollars. The scope grew after approval to four buildings and nearly 2.9 million square feet. City of De Soto KCUR Each eligible building can draw a property tax abatement of up to 10 years plus a sales tax exemption on construction materials. During the abatement the developer makes payments in lieu of taxes on a per square foot basis. The city administrator quoted a range of 40.5 to 44.95 cents per square foot of building. The city put that at about 1 million dollars a year for phase one. Johnson County Post City of De Soto The package also cuts the electric franchise fee rate by 25 percent. The city collects about 1.5 million dollars on the first building. At full operation an estimated 5.5 million dollars a year goes to the city, rising 1.5 percent annually. Johnson County Post The developer still pays sales tax on energy usage. The school district capital mill levy of 8 mills is protected from the abatement. City of De Soto Johnson County Post | The developer funds 100 percent of the water, sewer, and utility upgrades the campus needs. The developer also meets annual reporting and performance terms. Every phase takes its own public hearing and its own council vote. De Soto development agreement The council approved the development agreement with Mount Sunflower LLC and the resolution of intent unanimously on August 21, 2025. City of De Soto The site is the former Flint Commerce Center at the northwest corner of 103rd Street and Edgerton Road. It is already zoned light industrial and covers about 300 acres. KCUR City of De Soto Full build out is expected to take seven to nine years. Johnson County Post Beale develops and will own the campus. Beale has declined to say who the end user is. Kansas City Business Journal The bond power itself comes from the Kansas act that lets any city or county issue revenue bonds to pay for commercial and industrial facilities and then lease them to the user. K.S.A. 12-1740 et seq. | Live. The city lists the Phase 1 site plan for Buildings 1 and 2 as conditionally approved. Grading and early site preparation are underway. Phased development runs through approximately 2035. City of De Soto Beale started construction in April 2026. Johnson County Post |
Reno County
Reno County commissioners debated bans on AI data centers and battery energy storage in unincorporated areas after residents pushed a petition, and on June 15, 2026 they voted the bans down. KWCH Reno County Commission The county offers no AI data center incentive. The large Evergy investment near Hutchinson that drew local attention is a 705 megawatt combined cycle natural gas plant, not an AI data center. Greater Hutchinson
Sedgwick County
Sedgwick County stopped taking AI data center applications with an interim development control resolution adopted January 14, 2026, which pauses the county while the planning department writes zoning rules. Resolution 014-2026 Sedgwick County Commissioners extended it once to June 11, 2026 and again in May 2026, and the pause now runs through September 11, 2026, with no permanent AI data center zoning rules adopted as of July 19, 2026. KMUW No local incentive is on offer during the pause, and the Wichita and Sedgwick County zoning code still carries no definition of a data center. Resolution 014-2026 KMUW
Shawnee County
GO Topeka said in June 2026 that Evergy had spent months in talks to bring an AI data center to Shawnee County under the code name Project Deep Blue, with GO Topeka acting as liaison and the company itself still unnamed. Topeka Capital-Journal County officials laid out an application process for AI data centers and battery storage in June 2026, and no local incentive package has been approved. WIBW
Wyandotte County
Home to the proposed Red Wolf hyperscale campus west of the Kansas Speedway, rezoned by a 9 to 2 commission vote in 2025 and then slowed by a protest petition and a lawsuit. Wyandotte Daily Kansas Reflector Ingrams Reported value splits between 12 billion dollars and 12.6 billion dollars depending on the outlet, and no final court ruling in the zoning case has been reported as of July 19, 2026. Kansas Reflector Kansas City Business Journal The developer kept buying, closing on more than 150 acres along Parallel Parkway in February 2026. Kansas City Business Journal Standard industrial revenue bond abatements are on the table through the Unified Government, but no AI data center package has been confirmed. Wyandotte Economic Development Council
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Unified Government tax abatement through industrial revenue bonds and the constitutional exemption | Bond financed property gets up to 10 years of property tax abatement. Construction materials bought through an industrial revenue bond project get a sales tax exemption. Both are available in Kansas City, Kansas and unincorporated Wyandotte County. Wyandotte Economic Development Council K.S.A. 79-201a Second Kansas Department of Commerce | The Unified Government of Wyandotte County and Kansas City, Kansas approves the bond issuance and the abatement terms project by project. State law caps the property tax abatement at 10 years. K.S.A. 79-201a Second Kansas Department of Revenue | Live. The Unified Government adopted the industrial revenue bond policy that governs these abatements by Commission Resolution 2021-736 on April 8, 2021. It is still the version published on the Unified Government site. It caps the abatement on any project at 75 percent. Unified Government industrial revenue bond policy Nothing in the policy sets an end date for the program. Every award is subject to annual compliance review. An award can be modified or eliminated if the company falls out of step with its performance agreement. Unified Government industrial revenue bond policy |
Kentucky exempts AI data center equipment from its six percent sales and use tax for as long as 50 years, and the minimum investment runs from 25 million to 450 million dollars depending on how many people live in the county. KRS 139.499 KRS 139.200 KRS 154.20-220 The program went statewide in 2025 and came through the 2026 session untouched. KY HB 775 (2025) KRS 154.20-220 The real 2026 change was administrative. On June 23, 2026 the Cabinet for Economic Development published guidelines that load the front end of an application with community benefit and ratepayer paperwork. Kentucky Qualified Data Center Incentive Program guidelines
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Qualified Data Center Project sales and use tax exemption | A project that qualifies pays no state sales and use tax on the sale, purchase, use, storage, consumption, installation, repair, or replacement of its equipment. KRS 139.499 The statutory definition of equipment is unusually broad. It reaches 1) servers, routers, connections, racks, and chassis, 2) fiber optic and copper cabling, 3) network equipment leading to and from the project, 4) monitoring and security systems including security system monitoring services, 5) all software and prewritten computer software access services, 6) extended warranty services, 7) everything needed to transform, generate, distribute, or manage the electricity that runs the servers, including substations, generators, uninterruptible energy equipment, batteries, duct banks, and backup generators, 8) all cooling equipment including chillers, cooling towers, air handling units, and adiabatic and free cooling systems, 9) all water conservation systems, and 10) any other tangible personal property essential to operations. KRS 154.20-220 It does not reach 1) the electricity the project burns, 2) property used for administrative purposes such as office equipment, 3) construction equipment, or 4) building and construction materials permanently built into real property. KRS 154.20-220 Stites and Harbison client alert The memorandum of agreement runs as long as 1) 50 years for a capital investment of 450 million dollars or more, 2) 25 years below that figure, and 3) 15 years for a project organizer. Cabinet program fact sheet KRS 154.20-229 | The order of operations matters. KEDFA grants preliminary approval and signs a memorandum of agreement. The Department of Revenue then issues a certificate of exemption. Final approval comes once KEDFA verifies the minimum capital investment on or before the fifth anniversary of preliminary approval. Nothing bought before the certificate issues qualifies. Cabinet program fact sheet The Department of Revenue says the approved company may then hand that certificate to an equipment vendor on its own or execute it jointly with a contractor. Department of Revenue Sales Tax Facts June 2025 The minimum investment for an owner, operator, or colocation tenant depends on county population. It is 1) 450 million dollars in a county of 100,000 or more people, 2) 100 million dollars in a county above 50,000 but under 100,000, and 3) 25 million dollars in a county of 50,000 or fewer. County population is measured by the most recent five year American Community Survey at the time of application. A project organizer needs at least 150 million dollars. Colocation tenants are expressly eligible. The statute sets no job or wage minimum. KRS 154.20-220 Stites and Harbison client alert The project may not 1) replace an existing Kentucky AI data center, 2) apply for or accept any other economic development incentive under KRS Chapter 154, or 3) benefit from the cryptocurrency mining electricity exemption. KRS 154.20-220 On top of the statute, the Cabinet guidelines dated June 23, 2026 add 1) a nonrefundable application fee of 1,000 dollars, 2) an administrative fee of 25,000 dollars for a project organizer or 70,000 dollars for an owner, operator, or colocation tenant, 3) all KEDFA legal costs, 4) a letter of endorsement from the local mayor or county judge executive, 5) a community engagement plan, 6) an independent economic impact study, 7) a strategic plan to protect the community if jobs and tax revenue do not materialize, 8) a decommissioning plan, 9) will serve letters signed by the chief executive of every electric, gas, water, and sewer provider, 10) a utility explanation of how ratepayers who are not AI data centers will be affected, and 11) a nine month interim performance period after which preliminary approval is rescinded if the deliverables are not met. Kentucky Qualified Data Center Incentive Program guidelines Annual compliance exhibits are due within 30 days of each fiscal year end. A preliminarily approved company must file a public annual report with the Department of Revenue every September 1. The report itemizes the equipment it bought and the tax it did not pay, verified by an independent third party. Cabinet program fact sheet KRS 139.499 | Active as of July 2026. HB 8 created the exemption in 2024, effective July 15, 2024. HB 775 took it statewide in 2025, effective June 27, 2025. KY HB 8 (2024) KY HB 775 (2025) KRS 139.499 KRS 154.20-220 The 2026 session made no change. The program has no sunset. I read the KEDFA board books for every 2026 meeting through June 25. I found the program listed only as an update item under other business in March and April, never as a project approval. So no company appears to have cleared preliminary approval yet. KEDFA board books KEDFA board book April 30, 2026 KEDFA board book June 25, 2026 |
| Clawback on a failed qualified data center project | This entry is the downside of the exemption rather than a benefit. If KEDFA terminates the exemption, the Department of Revenue issues a notice of assessment and recovers the tax that went unpaid. The total recovered may not exceed the aggregate value of the tax not paid plus interest under KRS Chapter 131. KRS 139.499(5) | If the minimum capital investment is not met within five years of preliminary approval, the Cabinet notifies the Department of Revenue. The certificate of exemption is revoked. The memorandum of agreement is canceled. The company owes the tax it never paid. KRS 139.499 Cabinet program fact sheet KRS 154.20-229 For a preliminarily approved company the assessment is timely if it issues on the later of 180 days after the Cabinet notifies the department of termination or the date otherwise allowed under KRS 139.620. A subsequent owner that assumes the liability is assessed on the same schedule. KRS 139.499(5) | Active, and untested so far, since no project has reached preliminary approval on the public record. KEDFA board books |
| Industrial revenue bond property tax abatement | I could find no Kentucky property tax exemption for AI data centers. Servers and other equipment stay on the state and local tangible property tax rolls. Kentucky Qualified Data Center Incentive Program guidelines Kentucky Department of Revenue business personal property The general workaround is an industrial revenue bond. A city or county issues bonds and takes title to the project. Taking title lifts the land, building, and equipment off the local property tax rolls. The company leases the project back and pays a state level tax on the leasehold interest. Legislative Research Commission industrial revenue bond overview Lexington industrial revenue bonds KRS 103.200 to 103.285 Communities normally negotiate payments in lieu of taxes alongside the bonds. The Cabinet guidelines of June 23, 2026 expressly contemplate school district payments in lieu of taxes as a community benefit. Kentucky Qualified Data Center Incentive Program guidelines | The local issuer has to approve the bond issue, the lease, and the negotiated payment in lieu of taxes. Legislative Research Commission industrial revenue bond overview I could find no Kentucky AI data center industrial revenue bond, payment in lieu of taxes, abatement, or tax increment financing deal on the public record as of July 19, 2026. These deals are negotiated privately, so one could surface later. The two largest announced projects are selling full property and school tax payments as the community benefit instead. WCHS Boyd County tax revenue report Hancock Clarion | Active as a general tool. I could find no public record of one used for a Kentucky AI data center. Legislative Research Commission industrial revenue bond overview |
| Cryptocurrency mining electricity sales tax exemption | Kentucky exempts electricity used in commercial mining of cryptocurrency from sales and use tax. Applications for the exemption closed on June 30, 2025. It ends for electricity purchased on or after July 1, 2030. KRS 139.516 This is the only power related break on the books. An ordinary AI data center gets nothing on electricity, because the qualified data center exemption carves electricity out by name. KRS 154.20-220 | The electricity has to be used in commercial mining of cryptocurrency as the statute defines it. That means mining at a colocation facility whose computing system nodes consume at least 200,000 kilowatt hours of electricity per month. KRS 139.516 A project that takes this exemption is disqualified from the qualified data center program, so a developer has to pick one. KRS 154.20-220 | Active. KRS 139.516 |
| Kentucky Enterprise Initiative Act refunds | A refund of Kentucky sales and use tax paid on 1) building and construction materials, 2) research and development equipment, 3) electronic processing equipment, and 4) flight simulation equipment, capped at the recovery amount written into the KEDFA memorandum of agreement. KRS 154.20-200 to 154.20-216 Cabinet Kentucky Enterprise Initiative Act sheet Before HB 8 in 2024, this capped refund was the closest thing Kentucky offered an AI data center. It reaches electronic processing equipment, which the Cabinet sheet sets a 50,000 dollar minimum investment on. What limits it is the cap in the agreement rather than the equipment list. KY HB 8 (2024) | A minimum investment of 500,000 dollars in an eligible economic development project. Claiming the electronic processing equipment category takes at least 50,000 dollars of that equipment. KEDFA approval has to come before the purchases, because tax paid before approval is not refundable. Cabinet Kentucky Enterprise Initiative Act sheet A qualified data center project cannot stack this with the equipment exemption, because the qualified data center statute bars taking any other KRS Chapter 154 incentive. KRS 154.20-220 | Active. KRS 154.20-200 to 154.20-216 |
| Kentucky Business Investment program | Income tax credits and wage assessment incentives for new or expanding companies, including nonretail service or technology operations. That is the box an AI data center operation would most plausibly fit. Kentucky business incentives KRS 154.32-020 No Kentucky AI data center has publicly used this program. The KEDFA board books through June 25, 2026 show no such approval. KEDFA board books | Job creation and wage targets written into a KEDFA agreement. Kentucky business incentives KRS 154.32-020 A project claiming the qualified data center exemption cannot also take this, because the data center statute bars accepting any other KRS Chapter 154 economic development incentive. KRS 154.20-220 | Active. Kentucky business incentives |
County and local programs
Allen County
Allen County passed a 24 month moratorium on AI data center construction, which Judge Executive Dennis Harper described in June 2026 as buying time to research the issue and to protect the county and its citizens, pointing at the trouble neighboring Simpson County ran into. WBKO Kentucky Lantern No local incentive is on offer.
Barren County
Kentucky Industrial Alliance has assembled land for a proposal of up to 2 million square feet and 1.2 gigawatts. Kentucky Lantern map Cave City adopted a 12 month moratorium after special meetings on May 18 and May 20, 2026, the developer sued on June 8, 2026, and the city moved to dismiss that suit on June 29, 2026. Bowling Green Daily News WCLU Radio No local incentive has been offered.
Boyd County
TeraWulf's Muskie Data Campus at the EastPark industrial park plans more than one gigawatt by 2030 and was sold to the public as paying full taxes and full power rates with no special exemptions. TeraWulf press release WCHS AOL The only local sweetener was industrial park land that had sat vacant for years. Herald Dispatch EastPark announcement Boyd County then approved a six month moratorium on new AI data centers that expressly does not touch the Muskie project. WCHS Herald Dispatch
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| TeraWulf Muskie Data Campus at EastPark | TeraWulf announced on May 26, 2026 the acquisition from Industrial Equity Partners of about 285 acres of owned and controlled land inside the 1,000 acre EastPark Industrial Park. Adjacent acreage is available for expansion. TeraWulf press release Herald Dispatch Local officials and the regional development authority describe the footprint as about 300 acres. I have used the company figure. WCHS The park straddles Boyd and Greenup counties. Boyd officials speak for the project and claim the school tax revenue. The Kentucky Lantern lists the project under both counties. Kentucky Lantern map Lane Report Delivery of the first 500 megawatts is expected to ramp beginning in the second half of 2028. Another 500 megawatts is targeted for the second half of 2030. TeraWulf press release Kentucky Power is building a 345 kilovolt substation tied to the existing 765 kilovolt transmission network. Herald Dispatch The Northeast Kentucky Economic Development Authority said 1) the campus will pay the full standard industrial rate with no discounts, subsidies, or special exemptions, 2) roughly 94 percent of the transmission upgrade costs are expected to be allocated outside Kentucky, and 3) Muskie is expected to fund about half of the remaining Kentucky share. AOL The Daily Independent via Yahoo News The same authority said Kentucky Power's planned transmission improvements belong to a broader multi state long term resource plan at AEP and predate the Muskie project. The Daily Independent via Yahoo News Boyd County Judge Executive Eric Chaney put the Boyd County School System alone at 5 to 6 million dollars a year in tax revenue. Local officials expect about 300 long term positions. That figure comes from them rather than from TeraWulf. WCHS No county abatement, payment in lieu of taxes, or bond deal was announced. Equipment purchases would land in the 25 million dollar tier of the state exemption, because the county has fewer than 50,000 people. KRS 154.20-220 KRS 139.499 | KEDFA approval is required for any state exemption. The board books through June 25, 2026 show none for this project. KEDFA board books The governor's office said TeraWulf agreed to 1) pay for all of its own power, 2) ensure no detrimental impacts to ratepayers or the environment, 3) pay significant school and local taxes, and 4) create short and long term employment. AOL The site is already zoned for its intended use. The six month county moratorium adopted in July 2026 exempts it, because EastPark is a regional park with multiple county owners. WCHS Herald Dispatch Transmission and energy service agreements were executed alongside the acquisition under Kentucky Power's industrial general service tariff structure for large loads. Kentucky Power filed a notice of intent with the Public Service Commission on April 21, 2026 to seek a certificate of public convenience and necessity for new in state generation. The attorney general was granted intervention on May 6, 2026. Herald Dispatch | Live and moving forward now. TeraWulf announced the land acquisition on May 26, 2026. No KEDFA preliminary approval for the state exemption appears on the public record. KEDFA board books The Boyd County Fiscal Court adopted a six month moratorium on new AI data centers at a special meeting on July 9, 2026. That ordinance exempts EastPark, so it does not pause this project. Herald Dispatch |
Carroll County
Carroll County took the one local step the state program actually requires. On June 24, 2026 the fiscal court authorized a letter of endorsement so that Deca Companies could pursue the state AI data center incentive for a proposed project in the county. Kentucky Lantern KEDFA letter of support
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Letter of local support for the Deca Companies project | This is not a local tax break. It is the endorsement letter from a local elected official that the Cabinet guidelines of June 23, 2026 require before KEDFA will grant preliminary approval for the state sales and use tax exemption. Kentucky Qualified Data Center Incentive Program guidelines The Carroll County Fiscal Court approved a motion at a special meeting on June 24, 2026 authorizing the deputy judge executive to sign a letter offering preliminary support for the Deca Companies project. That letter starts the state incentive clock. KEDFA letter of support Carroll County Fiscal Court minutes, June 24, 2026 The Kentucky Lantern statewide map published July 7, 2026 lists the Carroll County site as a planned hyperscale AI data center. Kentucky Lantern map The state break the letter supports is the qualified data center project exemption. KRS 154.20-220 carries the definitions for that program. KRS 154.20-220 | Under the Cabinet guidelines the endorsement letter may carry local contingencies. It has to be updated during the nine month interim performance period with 1) an overview of any formal local financial incentives, 2) any local resolutions approving them, 3) any zoning changes made or planned, and 4) verification that the county engaged in the company's community engagement plan. Kentucky Qualified Data Center Incentive Program guidelines No Carroll County abatement, payment in lieu of taxes, or bond has been reported. The county's own filing offers support rather than money. KEDFA letter of support Carroll News Democrat | In effect now with no published expiration. The Carroll County Fiscal Court approved the letter at a special meeting on June 24, 2026, and Deputy Judge Michael Humphrey signed it. Judge Executive David Willhoite told the court on July 14, 2026 that the state, and not the county, decides whether Deca gets the incentives. Carroll News Democrat |
Daviess County
After the TeraWulf project landed next door in Hancock County, the Daviess County Fiscal Court voted unanimously on May 28, 2026 to enact Ordinance 03-2026, a 12 month moratorium on accepting or processing AI data center applications. Daviess County public notice WFIE No local incentive is on offer.
Fayette County
Lexington went the other way. On June 9, 2026 the Urban County Council voted unanimously to halt zoning map changes, development plan reviews, and permits for AI data centers through October 31, 2026. WEKU Mayor Linda Gorton said the same day that the city does not support public incentives for the DartPoints project on the former Lexmark property, citing thin job creation. Lexington news Kentucky Lantern map
Greenup County
The EastPark industrial park straddles Greenup and Boyd counties, and the Kentucky Lantern lists the TeraWulf Muskie campus under both. Kentucky Lantern map Greenup County Judge Executive Bobby Hall was one of the judges executive who put the deal together, and no separate Greenup tax break has been reported. Herald Dispatch EastPark announcement Lane Report
Hancock County
TeraWulf is converting the closed Century Aluminum smelter near Hawesville into the Justified Data campus, and in July 2026 it signed Anthropic to a 20 year lease worth about 19 billion dollars. Data Center Dynamics No local tax abatement has been reported, and the power contract is drafted so the AI data center carries its own costs. Big Rivers contract filing
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| TeraWulf Justified Data campus at the Hawesville smelter | On February 2, 2026, Century Aluminum of Kentucky closed the sale of roughly 750 acres at Hawesville to Justified DataPower LLC, a TeraWulf affiliate. The price was 200 million dollars in cash plus a 6.8 percent nondilutive minority equity interest in Raylan Data Holdings LLC. Hancock Clarion Reporting and utility filings put the total potential investment at up to 14 billion dollars. Courier Journal TeraWulf motion for expedited review On July 6, 2026, TeraWulf announced a 20 year lease with Anthropic for about 401 megawatts of critical IT load. The lease is expected to generate roughly 19 billion dollars of contracted revenue over the initial term. The first tranche comes online in the second half of 2027, and the full 401 megawatts by early 2028. Data Center Dynamics TeraWulf expects the campus to support between 100 and 120 permanent jobs. The company says it intends to hire locally and regionally. WKYT WFIE Big Rivers still maintains 482 megawatts of transmission capacity to the site. Big Rivers contract filing No Hancock County abatement, payment in lieu of taxes, or bond arrangement has been reported. County officials called the land deal a private sale that needed no local approval. Courier Journal Hancock Clarion Equipment purchases would land in the 25 million dollar tier of the state exemption, because the county has about 9,000 residents. KRS 154.20-220 KRS 139.499 | KEDFA approval is required for the state exemption. No qualified data center project anywhere in Kentucky had been approved for the state incentives as of May 2026. Kentucky Center for Economic Policy Courier Journal The KEDFA board books through June 25, 2026 show no approval for this project. Neither TeraWulf nor Anthropic has said publicly which of them would apply as owner, operator, or colocation tenant. Each of those roles would face its own 25 million dollar minimum. KEDFA board books KRS 154.20-220 Big Rivers Electric filed the proposed retail electric service agreement with the Public Service Commission on April 14, 2026, in case 2026-00115. The parties are Big Rivers, Kenergy, and Justified DataPower, and the filing runs under the large industrial customer expansion tariff. TeraWulf moved on May 27, 2026 for expedited review. Big Rivers contract filing TeraWulf motion for expedited review The agreement runs an initial 15 years. It carries five obligations. The first three are 1) a minimum 482 megawatt take or pay commitment for the first six years, 2) credit support equal to twice the highest estimated monthly bill, and 3) prepayment or collateral covering the annual MISO capacity obligation. The other two are 4) daily billing during extreme market volatility and 5) pass through of all energy, capacity, transmission, congestion, uplift, and regulatory costs. Big Rivers contract filing The Commission had not ruled as of July 19, 2026. It set a public comment hearing for 5 p.m. Central on July 27, 2026 at the Hancock County High School gymnasium in Lewisport. Hancock Clarion PSC case 2026-00115 filings | Pending. No KEDFA approval for the state exemption has issued. The power contract the campus needs is still under review. The Public Service Commission suspended the proposed retail electric service agreement in case 2026-00115 for five months, from May 14, 2026 up to and including October 13, 2026, so it could investigate whether the agreement is reasonable. It has not ruled. PSC order of May 12, 2026 in case 2026-00115 |
Jefferson County
Louisville is getting Kentucky's first hyperscale campus, and it leans on the state sales tax exemption. No local tax break has been reported. Louisville Public Media PowerHouse and Poe Companies announcement A six month moratorium on new AI data center approvals was tabled in committee on June 2, 2026, and the city is drafting size limits into its Land Development Code instead. Kentucky Lantern Louisville Metro
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| PowerHouse and Poe Camp Ground Road project | A hyperscale campus of about 150 acres and 1.6 million square feet on Camp Ground Road in southwest Louisville near Shively. Poe Companies and PowerHouse Data Centers announced it on January 16, 2025. LG and E is the utility. Louisville Public Media Courier Journal report published by Poe Companies PowerHouse and Poe Companies announcement LG and E secured an initial 335 megawatts, with a near term expansion to 402 megawatts. The first phase of 130 megawatts targets commercial operation in late 2026 behind a new LG and E switch station. Projected lifetime investment is about 11 billion dollars. Kentucky Energy Planning and Inventory Commission report The developers' announcement pointed to the 50 year tax exempt program Kentucky had just approved for Jefferson County data center projects. PowerHouse and Poe Companies announcement KY HB 8 (2024) Kentucky Energy Planning and Inventory Commission report The Louisville Planning Commission approved the revised development plan on March 5, 2026 over heavy public opposition. No Louisville Metro abatement, payment in lieu of taxes, or bond deal has surfaced. Louisville Public Media | For the state exemption the project needs KEDFA approval. It also needs at least 450 million dollars invested within five years of preliminary approval, because Jefferson County has more than 100,000 people. KRS 154.20-220 KRS 139.499 On June 9, 2026, the Louisville Metro Planning Commission released a draft ordinance. It would ban any AI data center over 500,000 square feet and confine any facility over 250,000 square feet to industrial areas. A 30 day public comment period followed. Those rules would reach only future projects. Kentucky Lantern Louisville Public Media A separate ordinance from Councilwoman Jennifer Chappell, refiled on May 11, 2026, would pause rezonings, conditional use permits, and plan applications for telecommunication hotels and AI data centers for 180 calendar days. It would reach only applications filed after it takes effect. Louisville Metro release on the reintroduced moratorium | Live and unblocked now. The moratorium ordinance O-125-26 has not passed. The Planning and Zoning Committee voted to table it on June 16, 2026 and did not call it again on July 21, 2026. Louisville Metro release from Councilwoman Parrish-Wright The Office of Planning draft AI data center regulations are still at the Planning Commission public hearing step, so no new local limit is in force. Louisville Metro Office of Planning data centers page |
Marshall County
Marshall County has operating capacity rather than proposals. Core Scientific has run a campus of about 150 megawatts near Calvert City since 2019, and Riot Platforms has run a 25 megawatt site there since 2024. Core Scientific Kentucky Lantern map Cryptocurrency mining load can use the electricity exemption, which disqualifies it from the qualified data center program. KRS 139.516 KRS 154.20-220
Mason County
A developer that local officials describe only as a Fortune 100 company is pursuing a campus of about 1.2 gigawatts in Mason County, roughly the output of the coal fired Spurlock station in the same county. Kentucky Lantern map Kentucky Lantern The developer has not been named and no local incentive has been disclosed.
McCracken County
Riot Platforms operates a 60 megawatt cryptocurrency mining site in McCracken County. WKMS Kentucky Lantern map The federal Department of Energy has issued a request for offers to build and power AI data centers on its Paducah site, one of four federal sites named for AI infrastructure, and anything built there would sit outside the county's normal land use control. U.S. Department of Energy Paducah request for offer Kentucky Energy Planning and Inventory Commission report
Oldham County
Western Hospitality Partners downsized and relocated its hyperscale proposal within Oldham County in 2025 after resident pushback. Louisville Public Media No local incentive has been reported.
Pike County
The city of Pikeville is exploring an AI data center on publicly owned industrial park land, which is the closest thing in eastern Kentucky to a local contribution. WYMT Nothing is final and the city is running an independent review first. LEX 18
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Pikeville memorandum of understanding with MD Squared Power | The city of Pikeville signed a memorandum of understanding on April 20, 2026 with Lexington based MD Squared Power LLC. The city announced it publicly on June 5, 2026. The memorandum explores an AI data center of roughly 250 million dollars and 25 to 30 megawatts at the Kentucky Enterprise Industrial Park. WYMT Lexington Herald Leader The park is a state certified Build Ready site whose existing infrastructure and power capacity could carry an initial phase without new construction. So the local contribution is publicly developed land and existing capacity rather than a tax abatement. LEX 18 | The memorandum identifies parcels that could be folded in depending on negotiations. The city commission will not take up a final development agreement until an independent review verifies the developer's economic projections. Any final agreement has to be approved at a public meeting and carry enforceable commitments to those numbers. No local tax abatement has been offered. LEX 18 WYMT | Live now and time limited. The city is working through a 120 day review window that started with the April 20, 2026 signing and runs into August 2026. The land still belongs to the city. No final development agreement has been approved. WYMT |
Simpson County
Simpson County is the state's test case for local control. The fiscal court passed Ordinance No. 440.70 in December 2025, which requires a conditional use permit for what it calls advanced technology centers and integrated energy systems. Simpson County Ordinance No. 440.70 Developer TenKey LandCo sued in January 2026, and the court adopted an amended version on May 5, 2026 after a second reading. Louisville Public Media WNKY No local incentive has been offered.
Woodford County
On June 23, 2026 the Woodford County Fiscal Court voted unanimously to direct the county attorney to draft an ordinance blocking AI data center development and operation in unincorporated areas, coordinating with the city of Midway. WEKU The measure carries the number Ordinance 2026-06 and sat on the fiscal court agenda for July 14, 2026. Woodford County Fiscal Court agenda No local incentive is on offer.
Louisiana exempts an AI data center certified by Louisiana Economic Development from all state and local sales and use tax on its equipment and its construction spending, for as long as 30 years. La. R.S. 47:305.73 Act 730 of 2024 There is no property tax break the operator itself can use, so every large project negotiates a payment in lieu of taxes with a local finance authority or industrial development board instead. Louisiana Economic Development LED Industrial Tax Exemption The Times-Picayune Since June 25, 2026 the sales tax exemption also runs through a new Ratepayer and Community Protection Framework that Governor Jeff Landry told the agency to write. Executive Order JML 26-058
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Data center sales and use tax exemption (Act 730) | Full exemption from the 5 percent state sales and use tax and from every local sales and use tax on AI data center equipment, software, and qualifying construction spending. La. R.S. 47:305.73 The statute names servers, networking gear, cooling systems, water conservation systems, monitoring and security equipment, backup generators, substations, switchgear, fiber and conduit, and modular data centers. It also covers the construction materials, site assessment, engineering, design, and installation labor used directly and exclusively in the facility. La. R.S. 47:305.73(A)(3) The state rate is 5 percent through December 31, 2029 and is scheduled to step down after that. Louisiana Department of Revenue Ryan tax alert The agreement with Louisiana Economic Development runs an initial 20 years, and the agency may renew it for 10 more, so 30 years is the ceiling. Only purchases made on or after July 1, 2024 qualify. Act 730 of 2024 Since December 4, 2024 the relief has worked as an upfront exemption through a direct payment number rather than the after the fact rebate that Act 730 originally created. La. R.S. 47:305.73 The Center Square One engineering professor costed the exemption for The Times-Picayune. He put the value to the three companies that had signed by early 2026 at 3.3 billion dollars to 3.6 billion dollars on construction alone. Roughly 75 percent of what an AI data center costs falls inside the exemption. Louisiana also has the highest combined sales tax rate in the country. The Times-Picayune Fortune | The facility must sit in Louisiana and be certified by Louisiana Economic Development. La. R.S. 47:305.73(A)(1) The operator swears an attestation that the project will create at least 50 new direct permanent jobs in Louisiana. The operator also attests that it intends to spend at least 200 million dollars of new capital in Louisiana on or after July 1, 2024 and before July 1, 2029. There is no wage floor anywhere in the statute. Act 730 of 2024 The company then signs an agreement with the agency naming every eligible recipient of the exemption. The state can end that agreement and let state and local collectors assess and collect the tax if the project falls short. The agency may add any further conditions it thinks appropriate. La. R.S. 47:305.73(B)(3) Because the statute defines a data center to include a facility built to power, cool, secure, or connect the equipment of its customers, a colocation building fits. A tenant benefits once the agreement names it as an eligible recipient. Louisiana Economic Development has not published a rule describing how tenants are certified in practice. Its rules page listed none as of August 2, 2026. La. R.S. 47:305.73(A)(2) LED rule promulgation On June 25, 2026 Governor Jeff Landry signed Executive Order JML 26-058. It directs the agency to write a Ratepayer and Community Protection Framework and to fold it into every agreement under the statute as a condition of getting the exemption and of keeping it. The order gives the agency 90 days to deliver criteria and an implementation plan. It also tells the secretary to weigh a project's demands on water, land, and generation and transmission capacity against its benefits before any agreement proceeds. Executive Order JML 26-058 Louisiana Illuminator Under the framework a company must attest to how it will 1) protect ratepayers, 2) invest in grid resiliency, 3) support workforce development, 4) contribute to the local tax base, 5) use natural resources responsibly, 6) invest in the community, 7) strengthen the state innovation economy, and 8) maintain transparency and accountability. Louisiana Economic Development | Active. The investment window closes July 1, 2029. The new qualification framework was still being written as of August 2, 2026. Executive Order JML 26-058 Louisiana Economic Development |
| Industrial Tax Exemption Program (ITEP) | An 80 percent property tax abatement for up to 10 years on a manufacturer's new capital investment. Louisiana Economic Development It is the state's flagship property tax incentive. But it only reaches manufacturers, so an AI data center operator generally cannot use it. It still matters to these deals because the utility uses it on the power plants it builds to serve them. Entergy applied for the exemption on the first two Franklin Farms gas plants serving Meta in Richland Parish. The exemption is worth a reported 237 million dollars in avoided parish property taxes over a decade. Louisiana Illuminator | The applicant has to be a manufacturer or tied to the manufacturing at the project site. A local ITEP committee reviews the application first, and its recommendation does not bind the state. The Board of Commerce and Industry then votes and the governor gives final approval. Applications filed on or after March 20, 2025 follow the 2025 rules. Louisiana Economic Development The program rests on La. Const. art. VII, § 21(F). That provision lets the State Board of Commerce and Industry contract with a manufacturer to exempt new property from ad valorem taxes for an initial term of up to five years, renewable for five more. | Active. It is not available to AI data center operators themselves. Louisiana Economic Development |
| Business utilities reduced sales tax rate on electricity | Louisiana has no electricity tax exemption written for AI data centers and no electricity tax written for them either. Electricity sold to a business, an AI data center included, carries a reduced 2 percent state sales tax rate rather than the 5 percent general rate. That general rate took effect January 1, 2025. Louisiana Department of Revenue state rate table The Act 730 exemption reaches substations, generators, switchgear, and other power infrastructure equipment, but never the electricity itself. La. R.S. 47:305.73 The Times-Picayune That 2 percent is the rate La. R.S. 47:302 levies on retail sales, use, leases, and services. | It applies on its own to nonresidential utility purchases statewide. No application and no AI data center certification. Louisiana Department of Revenue | Active. Louisiana Department of Revenue |
| High Impact Jobs Program | Reimbursable cash grants for up to 5 years on new payroll. The grant is 18 percent of payroll for new jobs paying at least 125 percent of the parish average wage. It is 8 percent for new jobs in designated distressed areas paying at least 110 percent of the parish or regional average wage, whichever is lower. Louisiana Economic Development Advantous It replaced the Quality Jobs payroll rebate. That rebate closed to new applicants on June 30, 2025. It had paid up to 6 percent of payroll for up to 10 years plus a sales tax or facility expense rebate. Quality Jobs Rebate Act 372 digest Louisiana has no income or franchise tax credit written for AI data centers. So this grant is the jobs incentive an operator would actually reach for. | New full time direct jobs that carry health insurance and pay above the parish average wage. The wage test is easier in distressed areas. Some industries are excluded outright. La. R.S. 51:2771 Act 372 digest Louisiana Economic Development began taking applications July 1, 2025. It issued emergency rules right after passage. Proposed rules were published in the August 2025 Louisiana Register. Advantous LED High Impact Jobs rules | Active. House Bill 507 was enrolled as Act 372 of the 2025 Regular Session and took effect July 1, 2025. The program is codified at La. R.S. 51:2771 and following. HB 507 bill history La. R.S. 51:2771 |
| Louisiana FastSites site readiness fund | A 150 million dollar Site Investment and Infrastructure Fund that pays for roads, utilities, rail, and other work to turn underused land into a project ready site. Louisiana Economic Development The agency launched it on October 16, 2025. By March 2026 it had designated 19 sites across 16 parishes. Phelps Dunbar Shreveport Times The fund is built to revolve. The state recovers its money as sites are sold or leased. This is the machinery behind the sort of state prepared megasite that landed the Meta project. The Advocate The fund was created by 2025 La. Acts No. 365. | Local and regional partners apply to have a site developed. Performance requirements attach to the state money. Louisiana Economic Development | Active. Louisiana Economic Development |
| LED FastStart workforce training | Free customized employee recruitment, training development, and training delivery for a new or expanding employer, at no cost to the company. Louisiana Economic Development It is a standing statewide program rather than an AI data center program. The agency's current data center page no longer lists it among the incentives it markets to these projects. LED data center page | Job creation commitments negotiated with Louisiana Economic Development. LED FastStart eligibility Louisiana Economic Development | Active. Louisiana Economic Development |
| LPSC Lightning Directive fast track for large load power plants | Not a tax incentive but the regulatory change that makes the rest of the stack work. On December 16, 2025 the Louisiana Public Service Commission voted 3 to 2 to adopt a directive from Commissioner Jean Paul Coussan. The directive lets a utility skip the market based mechanism it had used since the 1980s to show it was chasing the least cost power option. This applies only once the load is large enough. WWNO The Lens It generalized the accelerated treatment the commission had already given Entergy's three gas plants for Meta. Those plants were approved 4 to 1 on August 20, 2025, along with a 550 million dollar transmission line and roughly two months ahead of the original schedule. The Lens Entergy and Meta signed agreements in 2025 and March 2026 under which Meta carries its full cost of service. The agreements project about 2.65 billion dollars in benefits to other Entergy Louisiana customers over 20 years. Entergy Louisiana New Orleans CityBusiness | It applies to a utility application for generation serving a large new industrial load. The protection is contested. A consultant report for the commission in June 2026 found that Entergy Louisiana's proposed 1.8 billion dollar purchase of the Cottonwood plant in Texas was driven predominantly by the Meta load. The report said the purchase would raise bills for its 1.1 million ratepayers. The governor said that would break the promises Entergy and Meta had made. Entergy and Meta dispute that reading. Louisiana Illuminator The commission was still working toward permanent large load tariffs in 2026. New Orleans CityBusiness | Adopted December 16, 2025. The large load tariff rulemaking was still pending. WWNO New Orleans CityBusiness |
County and local programs
Bossier Parish
Shares the 12 billion dollar Amazon and STACK investment with neighboring Caddo Parish, announced February 23, 2026, under the same Northwest Louisiana Finance Authority payment in lieu of taxes structure. Bossier Parish Police Jury The Advocate
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Northwest Louisiana Finance Authority payment in lieu of taxes term sheet | The same tiered program Caddo Parish uses. The company pays 1) 70 percent of normal taxes on the first 2 billion dollars invested per site, 2) 60 percent on the next 2 billion dollars, and 3) 50 percent on the next, down to a 40 percent floor. The top tier assesses the property at 40 percent of value for 25 years. Three or more projects earns a further 10 percentage point cut. The parish recaptures an amount equal to 1 percent of sales tax purchases in perpetuity. The Advocate A term sheet and payment in lieu of taxes documents have been signed for the STACK developed site near Benton. The site sits about 5 miles north of Benton on the west side of Highway 3. It runs roughly 2 million to 3 million square feet. KSLA Bossier City has been setting up a separate fund to hold its share of the windfall. KSLA The Advocate | The requirements are 1) jobs at or above 150 percent of the statewide average wage, 2) annual public reporting to the governing body, 3) a clawback if the agreed investment and job levels are missed, 4) road repair, and 5) protection of fire ratings. The Advocate | Adopted by the Bossier Parish Police Jury on December 3, 2025 by a 10 to 1 vote. It is in effect now. Bossier Parish Police Jury minutes, December 3, 2025 |
Caddo Parish
Amazon and STACK Infrastructure announced 12 billion dollars of AI and cloud campuses across Caddo and Bossier in February 2026, and both parishes offer a tiered payment in lieu of taxes through the Northwest Louisiana Finance Authority. The Advocate Bossier Parish Police Jury
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Northwest Louisiana Finance Authority payment in lieu of taxes term sheet | A four tier payment in lieu of taxes. The company pays 1) 70 percent of normal taxes on the first 2 billion dollars invested per site, 2) 60 percent on the next 2 billion dollars, and 3) 50 percent on the next, down to a floor of 40 percent. The top tier assesses the property at 40 percent of value for 25 years. It is reached at 150 jobs and 8 billion dollars invested. A company building three or more projects gets a further 10 percentage point cut. That would take the top tier to 30 percent. The Advocate The parishes also recapture an amount equal to 1 percent of sales tax purchases in perpetuity. That is estimated at about 20 million dollars over the first five years of construction. Local officials put expected property taxes at roughly 10 million dollars per site per year. More than half of that goes to the parish public schools. The Advocate KSLA Amazon is the end user. STACK Infrastructure is the developer building the campuses. Term sheets and payment in lieu of taxes documents have been signed for the STACK developed sites near Blanchard in Caddo Parish and at the Resilient Technology Park in west Shreveport. Six projects across the two parishes had signed term sheets by early 2026. The Advocate The confirmed Caddo campus sits just north of Blanchard Latex Road on State Line Road. The Resilient Technology Park site off Greenwood Road is not part of the 12 billion dollars announced on February 23, 2026. An appeal of that site was still in litigation. KSLA Servers and other hardware carry no property tax at all under these deals. The Times-Picayune | Jobs have to be created and held at or above 150 percent of the statewide average wage. Local officials put that at about 95,706 dollars, against a statewide average of 63,804 dollars. The announced project carries 540 direct jobs plus an estimated 1,700 indirect ones. The Advocate Bossier Parish Police Jury Falling short of the job count cuts the abatement sharply. Unlike the state exemption, the local deals carry an annual public reporting presentation to the governing body and a clawback. The term sheets also make the company repair roads damaged during construction. And they make the company take all action necessary to avoid a drop in fire protection ratings that would raise residents' insurance. The Advocate | Adopted by the Caddo Parish Commission as Resolution No. 48 of 2025 on December 4, 2025 by a 10 to 2 vote. It is in effect now. Caddo Parish Commission minutes, December 4, 2025 |
Rapides Parish
Applied Digital's Delta Forge 1 AI campus near Boyce is a 3.6 billion dollar project running on the state Act 730 exemption. Louisiana Economic Development The England Economic and Industrial Development District approved payment in lieu of taxes terms for the Applied Digital project on April 24, 2026. KALB
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Act 730 certification for Delta Forge 1 | Applied Digital qualified for the state and local sales and use tax exemption for its two building campus on about 300 acres near Interstate 49 south of Boyce. The qualification was announced May 26, 2026. Louisiana Economic Development KALB The local half of that exemption is what Rapides Parish taxing bodies give up. The company pledged to pay the full cost of its power consumption and of the infrastructure Cleco needs to serve the campus. KALB BIC Magazine Applied Digital broke ground in January 2026 on a design supporting an initial 430 megawatts of utility power across two buildings. Applied Digital | The Act 730 floors of 50 new direct permanent jobs and 200 million dollars invested. La. R.S. 47:305.73 The project itself is planned at about 3.6 billion dollars. It carries roughly 200 direct jobs paying 150 percent of the state average wage, plus about 1,000 construction roles. Louisiana Economic Development | Live. Louisiana Economic Development announced on May 26, 2026 that Applied Digital had qualified for the state and local sales and use tax exemption. Site development started in January 2026. Operations are expected in mid 2027. Louisiana Economic Development |
Richland Parish
Home of Meta's Hyperion campus, a commitment of more than 50 billion dollars as of July 13, 2026, which pays 20 to 40 percent of normal property taxes under a 30 year payment in lieu of taxes plus a discounted state land lease. Meta The Advocate Meta bought 1,420 acres of that state land in September 2025, so the lease no longer covers the core site. The Times-Picayune
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Meta Hyperion payment in lieu of taxes through the Northwest Louisiana Finance Authority | A 30 year payment in lieu of taxes covering the Holly Ridge AI data center. It was signed with Meta's project entity Laidley LLC. Annual payments run 20 to 40 percent of the property tax otherwise due. The 20 percent floor arrives once Meta hits 10 billion dollars invested and 500 jobs by December 31, 2032. The Advocate Meta also pays an amount equal to 1 percent on construction materials, furniture, and fixtures that would otherwise carry state sales tax. That is why parish collections have surged during construction. Richland Parish teachers took bonuses of up to 50,000 dollars in 2026, against 10,000 dollars the year before. The average teacher salary in the state is 56,785 dollars. Meta Fortune The money splits 53 percent to the school board, 35 percent to the police jury, and 12 percent to the law enforcement district. The Advocate The Northwest Louisiana Finance Authority is based in Shreveport and normally serves the Caddo and Bossier area. It handled the deal because the Richland Parish industrial development board was defunct and could not be revived in time. The Advocate Meta's July 2026 expansion announcement added more than 1 billion dollars in local road, water, and wastewater work. I could not find any published amendment to the payment in lieu of taxes or to the land lease as of August 2, 2026. So the original terms still govern. Meta | The first target is at least 5 billion dollars invested and 100 full time jobs by December 31, 2028. The next is 8 billion dollars and 450 jobs by the end of 2029. The third is 9.5 billion dollars and 475 jobs by December 31, 2030. The last is 10 billion dollars and 500 jobs by December 31, 2032. Two part time workers at 20 hours a week each count as one full time employee. Average wages have to run at least 150 percent of the statewide annual average wage. Public filings project a Meta average salary of 82,000 dollars. The Advocate The parish assessor sets the yearly value. The sheriff collects. | Live. The 30 year term has not started to run. The term sheet sets that term at 30 years from the date a certificate of occupancy issues for any portion of the project. Northwest Louisiana Finance Authority term sheet for Laidley, LLC |
| Franklin Farm megasite state land lease | Louisiana Economic Development leases the roughly 2,250 acre state owned megasite to Meta's entity. Office of the Governor The primary term runs 30 years at 732,000 dollars a year. An optional 69 year renewal follows at 120 dollars a year. Meta also had an option to buy the site for 12 million dollars. That price is pegged to the state's own acquisition, development, carrying, and maintenance costs plus interest at 4.57 percent a year. The Advocate Meta exercised that option in September 2025, paying 12.5 million dollars for 1,420 acres of the state owned land. The Times-Picayune The state bought the Franklin Farm tract in 2006 hoping to land a Toyota plant. It could not sell the tract for nearly two decades. State law bars selling state land without public bid, so the deal had to be written as a long term lease. The Advocate Meta has since described the campus footprint as about 3,200 acres. The Epoch Times | The state can take the site back if the project misses 75 percent of both the capital requirement and the employment requirement by December 3, 2028. The purchase price climbs if the goals are missed. The Advocate | The lease ended in a sale. Meta exercised its purchase option and Louisiana Economic Development conveyed the Franklin Farms land to the company. The Legislative Fiscal Office records 872,383 dollars of Meta lease payments in fiscal year 2025 and 11,585,170 dollars of sale revenue in fiscal year 2026. Louisiana Legislative Fiscal Office Act 432 of the 2025 Regular Session gave Louisiana Economic Development that sale power. The act requires the commissioner of administration to approve, and it gives the Joint Legislative Committee on the Budget oversight. Act 432 of 2025 Reporting places the closing in September 2025 at 12.5 million dollars for about 1,420 acres. The Times-Picayune Meta now owns the AI data center site, so the 30 year lease terms no longer set what it pays the state. |
| Entergy ITEP application for the Franklin Farms power plants | Entergy applied for the state Industrial Tax Exemption on the first two gas plants it is building in the parish to serve Meta. The exemption would avoid a reported 237 million dollars in Richland Parish property taxes over a decade. The exemption sits with the utility, not with the AI data center. Louisiana Illuminator The Franklin Farms Power Station is a pair of combined cycle combustion turbine units totaling about 1,500 megawatts. Turbomachinery International Entergy asked the commission in April 2026 to fast track seven more plants for the expanded Meta load. KALB A May 2026 commentary still described the application as pending. The Board of Commerce and Industry had in fact approved it on December 3, 2025. Under the program a local committee reviews the application first, then the board votes, then the governor gives final approval. Louisiana Illuminator Board of Commerce and Industry minutes, December 3, 2025 Louisiana Economic Development | Manufacturer eligibility under the Industrial Tax Exemption Program plus local ITEP committee review, a vote of the state Board of Commerce and Industry, and approval by the governor. Louisiana Economic Development The authority for the exemption is La. Const. art. VII, § 21(F). That provision lets the board grant a manufacturer an initial five year exemption with one five year renewal. | Approved. The Louisiana Board of Commerce and Industry approved Entergy Louisiana application 20250139 for Richland Parish on December 3, 2025. The approval came in a slate of eleven new project applications under the 2025 rules. Board of Commerce and Industry minutes, December 3, 2025 |
West Feliciana Parish
Hut 8's River Bend AI campus pays the parish through a 30 year industrial development board lease back, with rent pegged to the assessed value of the buildings and of the graphics processors inside them. Government Technology 10/12 Industry Report
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Hut 8 River Bend industrial development board lease back | A 30 year agreement approved at the first meeting of the parish's new Industrial Development Board. The board takes title to the project near St. Francisville and leases it back to Hut 8. The annual rent is set equal to what property taxes on the facility and the graphics processors would have been. Government Technology The parish president expects the first regular payment to run roughly 60 million dollars. That payment is due July 1, 2027. It would rise toward 90 million dollars once the first phase is fully built by the end of 2027. It would keep climbing as more processors are installed. 10/12 Industry Report In June 2026 the council and the board approved a cooperative endeavor agreement for a 10 million dollar advance on those future payments. The advance was paid July 1, 2026. It splits 5.3 million dollars to the school board, 3.9 million dollars to the parish, and 800,000 dollars to the sheriff. It is to be repaid without interest out of the first regular payment. 10/12 Industry Report Hut 8 separately committed about 16 million dollars to parish water system improvements. It designed a closed loop cooling system to keep the campus from straining the parish water system. The Center Square Government Technology Phase one runs up to 10 billion dollars including tenant equipment. Fluidstack is the tenant under a 15 year lease backed by a Google financial backstop. The campus has 245 megawatts of critical IT capacity supported by 330 megawatts from Entergy. There is room to scale beyond 1,000 megawatts. Louisiana Economic Development Hut 8 On the state side Louisiana Economic Development says Hut 8 is expected to take the Act 730 exemption. Hut 8 also plans to use the Quality Jobs program. The agency secretary described the exemption deal in early 2026 as a signed preliminary agreement still being negotiated. Louisiana Economic Development The Times-Picayune | Build out of the first phase AI data center. The parish assessor values the property and the processors every year. The board collects the lease payments. Government Technology | In effect. The Industrial Development Board entered into the payment in lieu of taxes agreements with Hut 8 on October 29, 2025. The land and building agreement was revised in June 2026. The first regular payment is due July 1, 2027. West Feliciana Parish Government |
Maine has never had an AI data center incentive, and in April 2026 it went the other way and shut these facilities out of its ordinary business tax breaks. Public Law 2026 chapter 768 pulls the Business Equipment Tax Exemption and the Dirigo investment credit away from any data center that begins operations on or after August 1, 2026. LD 713 enrolled text LD 713 status The same law tells the Department of Economic and Community Development to study what financial incentives data centers may get under current state law and to report back by November 4, 2026, so the state is arguing with itself about this in public. P.L. 2026 ch. 768 sec. 10
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Business Equipment Tax Exemption, known as BETE | Eligible business equipment is fully exempt from local personal property tax if it would otherwise first be subject to assessment on or after April 1, 2008. 36 M.R.S. 691 Maine Revenue Services Maine taxes business personal property, so this was the main break an AI data center could claim on servers, racks and cooling equipment. | The equipment has to be eligible business equipment placed in service after April 1, 2007. The owner files each year with the local assessor. Retail equipment and several other categories are carved out. 36 M.R.S. 691 36 M.R.S. 693 Maine Revenue Services Public Law 2026 chapter 768 was enacted as LD 713 and approved by the Governor on April 23, 2026. It adds a new subparagraph 10 to 36 M.R.S. 691, subsection 1, paragraph A. That subparagraph excludes any property located in a data center, or in the portion of a facility that constitutes a data center, that begins operations on or after August 1, 2026. It also excludes any such property that is part of an expansion or project after that date. P.L. 2026 ch. 768 sec. 3 LD 713 status The law defines begins operations to mean the data center has installed operational computer and networking equipment and is performing data processing, data storage, cloud computing or similar computing infrastructure services. It says in so many words that construction, site preparation and equipment installation do not count. P.L. 2026 ch. 768 sec. 3 P.L. 2026 ch. 768 enacted text | Active for Maine business generally. Closed to any data center that begins operations on or after August 1, 2026. P.L. 2026 ch. 768 |
| Dirigo Business Incentives Program | This is a refundable income tax credit. It is worth 10 percent of eligible capital investment placed in service outside Cumberland, Sagadahoc and York counties, or 5 percent inside those three counties. It adds 2,000 dollars for each qualified employee who finishes a qualified training program during the tax year. 36 M.R.S. 5219-AAA The credit carries three terms. 1) It is capped at 2 million dollars per business per year. 2) It is refundable up to 500,000 dollars per tax year. 3) It can be taken over 5 years. DECD Dirigo Business Incentives | A business needs three things. 1) DECD certification before the investment or the training starts. 2) More than 50,000 dollars of eligible capital investment. 3) Activity in an eligible sector. DECD Dirigo Business Incentives The sector an AI data center would have fit is software publishing, data processing and computer design services. Public Law 2026 chapter 768 closes that door twice. Section 6 rewrites the sector to read software publishing, data processing and computer design services, excluding services performed at a data center. No date is attached to it. Section 9 separately disqualifies a business that is a data center that begins operations on or after August 1, 2026. P.L. 2026 ch. 768 secs. 6 and 9 P.L. 2026 ch. 768 enacted text The two do not line up. The sector edit sweeps in work at a facility that opened years ago. The disqualification only reaches facilities opening after August 1, 2026. DECD had not updated its Dirigo program page to mention data centers at all as of August 2, 2026. So no agency reading of that gap exists yet. DECD Dirigo Business Incentives | Active for Maine business generally. It was enacted in 2023 and took effect for tax years beginning on or after January 1, 2025. It is now closed to AI data center activity by Public Law 2026 chapter 768. 36 M.R.S. 5219-AAA P.L. 2026 ch. 768 |
| Data center exclusion law, LD 713 | There is no benefit here. This law takes benefits away. It strips BETE and Dirigo eligibility from data centers. P.L. 2026 ch. 768 P.L. 2026 ch. 768 enacted text It defines a data center as any facility in the State, freestanding or sitting inside a larger structure. The facility must primarily contain electronic equipment used for data processing, data storage, cloud computing or similar computing infrastructure services. It must also use environmental control equipment to keep proper operating conditions. P.L. 2026 ch. 768 sec. 4 It then carves out equipment that is incidental to and used in support of a business whose primary activity is something other than computing services. That carve-out is how an ordinary company server room stays out of the net. | Nothing to apply for and nothing to elect. The exclusion just applies. P.L. 2026 ch. 768 Section 10 of the same law orders the Department of Economic and Community Development to study the financial incentives data centers may benefit from under current state law. It must report to the Legislature's taxation committee, with suggested legislation, no later than November 4, 2026. That committee may then report out a bill to the 133rd Legislature in 2027. P.L. 2026 ch. 768 sec. 10 The bill came through a public hearing before the Legislature's Taxation Committee in March 2026. The Maine Municipal Association testified in support and said AI data center exemptions chip away at municipal property tax bases. The Maine State Building and Construction Trades Council testified against it. Maine Morning Star, March 11, 2026 | Enacted. The Governor approved it on April 23, 2026. It was chaptered as Public Law 2026 chapter 768. LD 713 status P.L. 2026 ch. 768 |
| Manufacturing fuel and electricity exemption, which a data center cannot use | Ninety five percent of the sale price of all fuel and electricity bought for use at a manufacturing facility is exempt from Maine sales tax. For electricity, the sale price counts transmission and distribution charges too. 36 M.R.S. 1760, sub-sec. 9-D DECD sales tax exemptions This is the closest thing Maine has to a power tax break, so it is the benchmark an AI data center would want. | The buyer has to be a manufacturing facility using the fuel and electricity at that facility. 36 M.R.S. 1760, sub-sec. 9-D A facility that only hosts computing does not manufacture anything, so its power purchases are taxed in full at 5.5 percent. | Active, and out of reach for an AI data center. 36 M.R.S. 1760 |
County and local programs
Androscoggin County
Lewiston city councilors voted 7 to 0 on December 16, 2025 to reject a 300 million dollar AI data center in the historic Bates Mill No. 3 building. Maine Public Mainebiz The developer, MillCompute, which building owner Bill Johnson had partnered with, proposed a facility across 85,000 square feet in the first two stories. A 20 to 24 megawatt natural gas co-generation plant in the mill boiler house would have powered it. News Center Maine The Maine Wire The council denied the joint development agreement the project needed, and no incentive was ever offered.
Aroostook County
Maine's first AI data center sits at the former Loring Air Force Base in Limestone, where Loring LiquidCool Data Center leased 115,000 square feet from Green 4 Maine for a facility of about five to six megawatts. Bangor Daily News Data Center Dynamics The state fund that recycles income tax withholding from new jobs at the base into local services was set to stop taking payments for tax years beginning on or after July 1, 2026. 5 M.R.S. 13080-Q Part J of the April 2026 supplemental budget moved that cutoff out to July 1, 2031, so the fund is still open to the site. P.L. 2025 ch. 650 Part J
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Loring Job Increment Financing Fund, Loring Commerce Centre in Limestone | The State Tax Assessor deposited the employment tax increment from net new jobs inside the former base area into a fund held for the Loring Development Authority. 5 M.R.S. 13080-P 5 M.R.S. 13080-S The money could only go to the costs of municipal services, which the statute lists as water, sewer, fire protection, police protection, sanitation services and the maintenance of grounds and roads. Anything unspent in a year was held back against future municipal service costs. 5 M.R.S. 13080-Q Payments went to the development authority, not to a tenant business. | The increment was measured against total employment in the base area as of July 1, 1996. Withholding did not count if the business already collected under another Title 36 Part 9 withholding program, or under Employment Tax Increment Financing. 5 M.R.S. 13080-P 5 M.R.S. 13080-Q The payment window had been shut. Payments could not be made for tax years beginning on or after July 1, 2026. The Legislature last moved that date in 2013, when it pushed the old 2016 cutoff out ten years. P.L. 2013 ch. 413 5 M.R.S. 13080-Q A 2024 attempt to extend it again, LD 1981, was held by the Governor on May 22, 2024. It died when the 131st Legislature ended on December 4, 2024. No later stand-alone bill revived it. LD 1981 status So an AI data center arriving at Loring got nothing from this fund. That was the law until April 2026, when the Legislature reopened the window. Part J of the supplemental budget, Public Law 2025 chapter 650, struck July 1, 2026 from 5 M.R.S. 13080-Q, subsection 2, paragraph D and wrote in July 1, 2031. The Governor signed it on April 10, 2026. P.L. 2025 ch. 650 Part J LD 2212 status The same Part also raised the deposit from 50 percent of the prior year employment tax increment to 100 percent for each year beginning after 2025. P.L. 2025 ch. 650 Part J The paperwork runs on a fixed calendar. The authority certifies employment, payroll and withholding data to the State Tax Assessor by October 31 each year. The assessor reviews it by December 1 and approves payment if the requirements are met. The money is deposited with the State Controller by July 15 and paid to the fund by July 31. 5 M.R.S. 13080-S | Active through tax years beginning before July 1, 2031. Part J of Public Law 2025 chapter 650 moved the cutoff from July 1, 2026 out to July 1, 2031. The Governor signed it on April 10, 2026. P.L. 2025 ch. 650 Part J LD 2212 status |
Cumberland County
Three Cumberland County communities shut the door in the space of a week. Westbrook's council unanimously adopted a 180 day moratorium on June 1, 2026, Brunswick's council took up its own moratorium at a public hearing the same night, and Scarborough's council approved a 180 day pause in early June. Portland Press Herald Spectrum News Maine WGME No municipality in the county has put an AI data center incentive on the table.
Franklin County
The 550 million dollar AI data center proposed by JGT2 Redevelopment at the former Androscoggin Mill in Jay is on hold indefinitely after Sentinel Data Centers, the operator the mill owner had partnered with, told the town in June 2026 it would not move forward. Maine Public Maine Morning Star Jay was the rare Maine town that wanted the project. Its Select Board voted 4 to 0 in March 2026, with one member abstaining, to send the Legislature a letter of support for the plan. The Maine Monitor No local tax incentive was ever verified.
Lincoln County
Wiscasset officials voted on November 4, 2025 to pause an AI data center discussion in a town of roughly 4,000 year round residents, one of the first local pushbacks in Maine. Daily Yonder The proposal was a roughly 5 billion dollar project on a 300 acre town owned parcel, and residents turned on it partly over a nondisclosure agreement the town had signed with the developer. Government Technology Shelterforce No local incentive was offered.
Penobscot County
Bangor's council passed a 180 day data center moratorium unanimously on April 13, 2026. WABI Further north, the 300 million dollar Nautilus Data Technologies project at the former Great Northern Paper mill in Millinocket was canceled in April 2025.
York County
Sanford put an emergency 91 day pause on data center development in place on May 19, 2026 by a unanimous council vote, which stopped a proposed 1,000 acre campus along the Mousam River in its tracks. Portland Press Herald City of Sanford The project is the Sanford Woods Industrial and Technical Campus, pitched by the Northern New England Energy Company at 100 to 300 megawatts with its own fuel cell, solar and battery generation. Data Center Dynamics The pause expires in August 2026 and councilors have signaled they may replace it with a full 180 day moratorium. Sanford Springvale News No local tax deal has been approved.
Maryland exempts qualified AI data center equipment from the 6 percent sales and use tax for 10 years, or 20 years if the company puts in at least 250 million dollars. Md. Code Ann., Tax-Gen. § 11-239 Md. Code Ann., Tax-Gen. § 11-104 Counties and towns may also cut the local personal property tax on the same equipment. Md. Code Ann., Tax-Prop. § 7-248 The exemption survived a repeal bill in the 2026 session, which died in committee. HB 560 What passed instead was a new set of rules for very large electricity customers. Utility RELIEF Act fiscal note The harder problem for a developer is local. Between January and July 2026 seven of the jurisdictions an AI data center would actually want froze or banned new projects, and Harford County banned them for good. Inside Climate News Harford County press release, June 10, 2026
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Qualified Data Center Sales and Use Tax Exemption | Full exemption from the 6 percent sales and use tax on qualified data center personal property. The list covers servers, routers, other enabling hardware and software, chillers, cooling towers, air handling units, pumps, generators, transformers, exterior substations, uninterruptible power supply systems, batteries, and power distribution units. Business Tax Tip 28 Md. Code Ann., Tax-Gen. § 11-104 The certificate renews once a year. It runs up to 10 consecutive years. The benefit period stretches to 20 consecutive years if the business invests at least 250 million dollars in qualified data center personal property. The investment has to come within the first 10 years after it applies. Maryland Commerce Equipment keeps the exemption even after it is bolted to the building. A contractor buying under a contract for a qualified data center may use the certificate. Electricity is not exempt. That matters more for an AI data center than for anything else on the list. Business Tax Tip 28 | Within 3 years after applying to the Maryland Department of Commerce, invest at least 2 million dollars and create at least 5 qualified positions in a Tier 1 area. Anywhere else in the state, invest at least 5 million dollars and create at least 5 qualified positions. Md. Code Ann., Tax-Gen. § 11-239 Tier 1 areas are Baltimore City and Allegany, Caroline, Dorchester, Garrett, Kent, Somerset, Washington, Wicomico, and Worcester counties, plus any opportunity zone in any county. A qualified position is 1) full time, 2) of indefinite duration, 3) newly created, 4) filled for at least 12 months, and 5) pays at least 150 percent of the state minimum wage. Maryland Commerce Maryland pays a minimum wage of 15 dollars an hour. It did not move on January 1, 2026. So the 150 percent floor is still 22.50 dollars an hour. GovDocs Maryland minimum wage 2026 Colocation and hosting facilities that lease equipment, space, and bandwidth to several customers qualify. So do enterprise AI data centers owned and operated by the company they serve. Md. Code Ann., Tax-Gen. § 11-239 The certificate goes to the individual or corporation that files the application. So each applicant has to clear the investment and jobs thresholds on its own account. Neither the statute nor the Comptroller guidance lets colocation tenants pool their spending or their headcount. Business Tax Tip 28 Commerce certifies eligibility and notifies the Comptroller. The Comptroller issues the exemption certificate within 30 days. Commerce can revoke a certificate for false statements or missed commitments. The Comptroller can collect the unpaid tax. The statute carries no sunset date. Md. Code Ann., Tax-Gen. § 11-239 | Active as of July 2026. The 2026 repeal bill got a hearing on February 12, 2026. It never came out of the House Ways and Means Committee. HB 560 HB 560 fiscal note |
| County and Municipal Authority to Reduce Personal Property Assessment for Data Centers | State law lets the governing body of any county or municipal corporation reduce or wipe out, by local law, the percentage of assessment of qualified data center personal property that would otherwise be taxed. Md. Code Ann., Tax-Prop. § 7-248(b) Md. Code Ann., Tax-Prop. § 7-248 on Westlaw Maryland levies no state personal property tax. Department of Legislative Services, Guide to the Property Tax Structure in Maryland So a local opt in reaches the entire personal property tax bill on AI data center equipment. A county or town that adopts a reduction has to file a copy of its law with the State Department of Assessments and Taxation. If the Department has it by May 1, the change takes effect for the following taxable year. Md. Code Ann., Tax-Prop. § 7-248(c) Anne Arundel County, Howard County, and Prince George's County are the jurisdictions whose adopted laws I found as of August 2, 2026. Anne Arundel County Bill 13-22 Department of Legislative Services, Guide to Local Government Taxing Authority, August 2025 | The county or town has to pass its own law and set its own eligibility terms. The definitions come from the qualified data center definitions in the Tax-General Article. Those are the same ones that run the state sales tax exemption. Md. Code Ann., Tax-Prop. § 7-248(a) Md. Code Ann., Tax-Gen. § 11-239 | Active as of July 2026. HB 560 of 2026 would have repealed this local authority. It died in committee. HB 560 HB 560 fiscal note SB 427 of 2026 pushed the other way. It would have let counties set a special higher personal property tax rate on data centers. It died in the Senate Budget and Taxation Committee after a February 18, 2026 hearing. SB 427 |
| Voluntary Clean Capacity Rating Program for Large Load Customers | A voluntary fast track rather than a tax break. It is not running yet. The Public Service Commission has to build the program by December 15, 2027. The program has to include platinum and gold rating designations. The rating has to account for a large load customer voluntarily adopting demand response and incremental resources. It also measures how much of the customer's PJM assigned peak load is covered by incremental resources. That peak load is grossed up by the reserve margin. Gold and platinum customers get priority for load studies and interconnection ahead of unrated large load customers. Platinum ranks ahead of gold. A platinum customer also gets a guarantee that permit applications filed with the Maryland Department of the Environment are processed within 12 months. That guarantee is subject to state and federal law, including environmental justice requirements. A platinum customer can also procure and provide the substation equipment its own interconnection needs before permits are issued. HB 1532 fiscal note | The program is open to large load customers. Those are retail electric customers with an aggregate monthly demand of at least 25 megawatts and a load factor above 60 percent. A participant has to request a load study before it signs a contract for electric service. A gold or platinum rating is available only if the customer pays construction workers no less than the prevailing wage set by the Commissioner of Labor and Industry. The customer also has to sign a memorandum of understanding with the Public Service Commission. The Commission has to set penalties for breaking that memorandum. HB 1532 fiscal note The act fixes the numeric clean capacity thresholds. A gold rating needs incremental resources covering at least 80 percent of the customer's peak load as assigned by PJM and added to the appropriate reserve margin. A platinum rating needs 100 percent. The Commission has until December 15, 2027 to finish building the program. HB 1532 fiscal note HB 1532 | Enacted in 2026 and signed by Governor Moore on May 12, 2026. Maryland Matters The program is not operational, because the Commission has until December 15, 2027 to build it. HB 1532 fiscal note The signed law carries the number Chapter 353 of the 2026 session and the short title Utility RELIEF Act. Chapter 353 of 2026 (House Bill 1532) |
| Critical Infrastructure Streamlining Act of 2024 Backup Generator Permitting Exemption | Permitting relief rather than a tax break. The act changes the definition of generating station. The change lets qualifying backup generating units at AI data centers and other critical infrastructure be built without a Certificate of Public Convenience and Necessity or a separate Public Service Commission approval to construct. SB 474 of 2024 It followed the Commission decision denying backup generators for an Aligned Data Centers project at the Quantum Loophole campus in Frederick County. Quantum Loophole Government Technology Data Center Dynamics | The backup generating units have to meet the conditions the act sets for exempt construction. SB 474 of 2024 | Enacted in 2024 and signed by Governor Moore on May 9, 2024. Government Technology SB 474 of 2024 |
| Enterprise Zone Tax Credit (general program, not data center specific) | Real property tax credits and state income tax credits for a business that locates in a designated Maryland enterprise zone and creates jobs and invests. A business in a focus area may also qualify for personal property tax credits on new investment and a larger income tax credit for new jobs. Maryland Commerce An AI data center inside a zone could use these credits in principle. But the program was not built for AI data centers. The Department of Legislative Services has recommended terminating, consolidating, or reining in this credit along with several other business tax breaks. Maryland Center on Economic Policy testimony, February 12, 2026 | Locate in a designated enterprise zone and meet the program job creation and investment requirements. Maryland Commerce The program itself sits in the enterprise zone subtitle of the Economic Development Article. That subtitle runs from Md. Code Ann., Econ. Dev. § 5-701 through § 5-709. It holds the definitions, the zone designation rules, the focus area rules, and the business entity incentives. Maryland Commerce, Enterprise Zones statute | Active as of July 2026. Maryland Commerce |
County and local programs
Anne Arundel County
One of three Maryland counties with a local personal property tax cut for AI data center equipment. Department of Legislative Services, Guide to Local Government Taxing Authority, August 2025 The county wipes out the assessment for the first five years and cuts it in half for years 6 through 15. Anne Arundel County Bill 13-22
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Qualified Data Center Personal Property Assessment Reduction | A 15 year reduction in the county personal property assessment on qualified data center personal property. The assessment drops by 100 percent for the first five taxable years and by 50 percent for years 6 through 15. The term does not restart when the company invests more. The reduction ends if the investment or job requirements stop being met or the AI data center leaves the county. Anne Arundel County Bill 13-22 Anne Arundel County Code § 4-3-104 | At least 10 million dollars of total investment in the qualified data center and at least 10 qualified positions, using the definitions in Md. Code Ann., Tax-Gen. § 11-239. Anne Arundel County Bill 13-22 Sites at several county locations owned and operated by the same entity count as one. Apply or renew with the Office of Finance and the Anne Arundel Economic Development Corporation by April 15 before the taxable year. Include 1) the state annual report, 2) a listing of the personal property, 3) a listing of the qualified positions, and 4) a copy of the state exemption application. Anne Arundel County application form The county enacted this as Bill 13-22, effective April 14, 2022, under the state authority in Md. Code Ann., Tax-Prop. § 7-248. Md. Code Ann., Tax-Prop. § 7-248 | Live now with no sunset date. The County Council read and passed Bill 13-22 on February 22, 2022. The County Executive approved and enacted it on February 28, 2022. The ordinance ends the reduction only for a given recipient, never for the program itself. Anne Arundel County Bill 13-22 The Maryland Department of Legislative Services still listed section 4-3-104 as a current Anne Arundel County exemption in its August 2025 guide to local government taxing authority. Department of Legislative Services, Guide to Local Government Taxing Authority, August 2025 |
Baltimore County
No local incentive. The County Council unanimously passed Bill 3-26 in February 2026, which bars the county from approving development plans or zoning petitions for AI data centers until January 1, 2027 or 90 days after the Planning Board delivers its report. Gunpowder Riverkeeper Baltimore County Planning That report is due no later than October 1, 2026 and has to cover environmental, economic, public health, and utility effects. Baltimore County Planning
City of Baltimore
No local incentive, and two separate restrictions. The City Council passed Council Bill 26-0158 on May 11, 2026, a one year moratorium on construction of AI data centers drawing 10 megawatts or more, and Mayor Brandon Scott signed it. Baltimore Fishbowl Food and Water Watch Technical.ly Separately, the state Utility RELIEF Act bars data center construction in any Baltimore City development district subject to tax increment repayment on outstanding bonds, with a carve out for the City-Wide Affordable Housing Development District. HB 1532 fiscal note Baltimore City is still a Tier 1 area for the state sales tax exemption, so the lower 2 million dollar threshold applies on paper. Md. Code Ann., Tax-Gen. § 11-239 Maryland Commerce
Frederick County
Maryland's main AI data center market and the home of the Quantum Frederick campus, roughly 2,100 acres on a former industrial site. Data Center Frontier The local draw is that the county charges no business personal property tax at all. Frederick County economic development On July 1, 2026 the county executive froze new AI data center development by executive order, so that tax advantage is now attached to a closed door for anything new. WYPR
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| No county business personal property tax | Frederick County imposes no business personal property tax on any business, AI data centers included. So equipment at Quantum Frederick and elsewhere in the county carries no county personal property tax. Frederick County economic development This is a countywide policy rather than an AI data center program. It stacks with the state sales tax exemption. A consultant told the County Council that taxing data center personal property at 1.80 to 2 dollars per 100 dollars of assessed value would raise between 66.9 million and 74.4 million dollars a year. Frederick News-Post In late 2025 the Council put a request for state authority to create a data center personal property subclass into its 2026 legislative package. No such authority passed in the 2026 session. Frederick County legislative position statements, September 2, 2025 Frederick News-Post SB 427 of 2026 | None. The county levies no business personal property tax. So there is nothing to apply for. Frederick County economic development | Live for the 2026 to 2027 tax year. The adopted county rate schedule carries no general business personal property rate at all. The one personal property line on it is a limited rate of 2.775 dollars per 100 dollars of assessed value. That rate reaches only machinery and equipment used to generate electricity or steam for sale, or hot or chilled water for sale that heats or cools a building. Frederick County 2026-2027 tax rates The county adopts that schedule one tax year at a time. So the 2027 to 2028 rates could look different. |
| Executive order freeze on new data center development | This is a restriction, not an incentive. It is the single most important local fact for anyone siting in Frederick County today. On July 1, 2026 County Executive Jessica Fitzwater signed two executive orders. The first order, Executive Order 04-2026, freezes all new AI data center development. Frederick County Executive Order 04-2026 The freeze runs until Maryland finishes its statewide cost and benefit study. That study is due September 1, 2026. Chapter 10 of the 2025 special session (Senate Bill 116) The freeze also covers a county review the executive said would run to the end of December 2026. Projects approved before June 2025 are not covered. That includes the Quantum Frederick projects now under way. The second order, Executive Order 03-2026, makes new developers tell state regulators how much power they will need and where they plan to get it. Frederick County Executive Order 03-2026 WYPR Whether the freeze is extended, narrowed, or replaced by council legislation is open as of August 2, 2026, because the statewide study has not landed. WYPR | Applies to new AI data center development in the county. Projects approved before June 2025 are carved out. WYPR | In effect right now and set to run through December 31, 2026. The county states on its own AI data center page that it is not accepting new applications for these developments. The county announcement ties the end date to the state Data Center Impact Analysis and Report. Frederick County, Data Centers Frederick County announcement of the pause, July 1, 2026 |
Harford County
No incentive and no path. Harford became the first Maryland county to ban data centers outright when County Executive Bob Cassilly signed Bill 26-011 on June 10, 2026 after a unanimous council vote. The county says data centers were already not a permitted use under its zoning code and the bill was meant to shut the door for good. Harford County government
Howard County
No local incentive. The County Council unanimously approved a 17 month moratorium on new AI data centers on June 1, 2026, running to November 2, 2027 or ending sooner if a task force delivers zoning recommendations the council adopts. CCAN Action Fund The measure is Council Bill 31-2026, the Strategic Moratorium for Assessing Responsible Technology Siting Act, and the county opened applications for the task force on July 6, 2026. Howard County government
Montgomery County
No local incentive. County Executive Marc Elrich signed an executive order on June 12, 2026. The order tells the Department of Permitting Services to stop accepting, processing, and considering permit applications for new AI data centers. The pause runs for six months while the county writes a framework and the state finishes its assessment. Montgomery County government The executive called it a pause rather than a ban. Bethesda Magazine On July 28, 2026 the County Council went further. It passed Expedited Bill 19-26, an 18 month moratorium on data center permits. It also passed zoning text amendment ZTA 26-01, which prohibits hyperscale data centers in the county for now. Montgomery County Council
Prince George's County
No local incentive. On July 7, 2026 the County Council adopted a two year moratorium on AI data center development, the longest pause in the state, while it writes zoning, siting, and construction rules. Spotlight PA The moratorium grew out of the county Qualified Data Center Task Force, created by resolution CR-016-2025 after a plan to turn the shuttered Landover Mall into a hyperscale campus drew resident opposition. Prince George's County Council
Massachusetts has a 20 year sales and use tax exemption for certified AI data centers on the books. Governor Healey stopped the state from taking applications for it on June 25, 2026, and said the pause holds until stronger ratepayer and environmental protections are in place. Governor Healey halts data center tax incentive M.G.L. c. 64H § 6(zz) There is no state property tax break, so the property side gets negotiated town by town, and several communities have now banned or paused AI data centers outright. The Shoestring M.G.L. c. 40 § 59
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Qualified Data Center Sales and Use Tax Exemption | A full exemption from the 6.25 percent state sales and use tax on eligible data center equipment, computer software, electricity, and building and construction costs. M.G.L. c. 23A § 70 Mass.gov program page M.G.L. c. 64H § 6(zz) M.G.L. c. 64H § 2 The exemption runs 20 years per data center building. A multi building campus can get a separate 20 year period for each later building as it begins commercial operations. Certification takes effect on the application date or a stated future date up to five years out. An application the secretary neither approves nor denies within 60 days is deemed approved. M.G.L. c. 23A § 70 Morgan Lewis | You need 1) certification by the Executive Office of Economic Development, 2) at least 100,000 square feet of data center buildings on a single parcel or contiguous parcels, 3) at least 50 million dollars in qualified data center costs within 10 years of certification, and 4) at least 100 jobs created or maintained in Massachusetts within five years. M.G.L. c. 23A § 70 M.G.L. c. 64H § 6(zz) Mass.gov program page Office, meeting, loading dock, and mechanical support space count toward the square footage. The facility also needs backup power, fire suppression, and enhanced security. M.G.L. c. 23A § 70 M.G.L. c. 64H § 6(zz) 400 CMR 9.00 EOED reviews each certification after 10 years and can revoke it for material noncompliance. The statute defines material noncompliance as failure to substantially achieve the investment and jobs requirements. Revocation reaches back to the first day of the tax year in which EOED makes that finding. M.G.L. c. 23A § 70 | On the books but paused. Final regulations took effect and the application window opened on May 7, 2026. CommonWealth Beacon Governor Healey halted acceptance of applications on June 25, 2026 pending new guardrails. The administration said it had received no applications before the halt. Governor Healey halts data center tax incentive WBUR The statute has no sunset. M.G.L. c. 23A § 70 The halt announcement set no reopening date. It said the new framework is meant to guide future legislative, regulatory, and local decisions. I read the pause as open ended rather than tied to a fixed step. Governor Healey halts data center tax incentive |
| Electricity exemption inside the qualified data center program | Electricity used or consumed in the operation of a certified qualified data center is exempt from the 6.25 percent sales tax for the full 20 year qualification period. M.G.L. c. 64H § 6(zz) M.G.L. c. 64H § 2 Morgan Lewis That matters because Massachusetts exempts electricity used for residential purposes but not electricity used by a commercial data center. M.G.L. c. 64H § 6(i) Electricity is a large share of the operating cost of an AI data center. The Shoestring | This piece uses the same EOED certification as the main program. The June 2026 application halt applies to it too. Governor Healey halts data center tax incentive There is no separate electricity application. I found no standalone utility tax exemption for uncertified AI data centers. Mass.gov program page | Paused with the main program as of June 25, 2026. WBUR |
| Healey Driscoll Statement of Expectations for Responsible Data Center Development | This is a condition, not a benefit. It is the framework a developer has to satisfy before the administration will grant the sales tax exemption once applications reopen. It covers cost, energy, water, air, noise, jobs, and community impacts. Statement of Expectations Governor Healey halts data center tax incentive | Projects are expected to 1) bring their own clean energy, 2) cover the full cost of energy supply and infrastructure without shifting costs to other ratepayers, 3) protect environmental and community health, 4) avoid adding burdens in already burdened areas, and 5) contribute to the local and state economy and to clean energy goals. Statement of Expectations The administration also said the framework will guide its review of existing regulations and permitting. It said some pieces would need new legislative authority. Statement of Expectations MassLive | Active as of June 25, 2026 and the stated precondition for lifting the application halt. Governor Healey halts data center tax incentive |
| Local property tax tools under state law, TIF and chapter 121A PILOT | Massachusetts has no state property tax exemption for AI data centers. State law instead lets cities and towns negotiate. A chapter 121A urban redevelopment agreement replaces normal property taxes with negotiated payments for up to 40 years on land found blighted or decadent. That is the vehicle Westfield used for its AI data center deal. The Shoestring M.G.L. c. 121A § 10 A tax increment financing agreement under the Economic Development Incentive Program can exempt between 0 and 100 percent of the new value a project adds for up to 20 years. Economic Development Incentive Program City of Gardner incentives M.G.L. c. 40 § 59 | You need local legislative approval in the host municipality. Chapter 121A deals also require state review through the Executive Office of Housing and Livable Communities. Westfield's 2021 agreement is not in effect because those approvals were never completed. The Shoestring EDIP tax increment financing requires certified project approval by the municipality and by the Economic Assistance Coordinating Council. M.G.L. c. 40 § 59 Economic Development Incentive Program Local moratoriums and zoning bans now block this route in several communities. The Shoestring | Active, and a general law rather than anything specific to AI data centers. Economic Development Incentive Program |
| Economic Development Incentive Program Credit | A discretionary credit against income tax or corporate excise. The credit is up to 10 percent of the cost of qualifying tangible property, and up to 40 percent in some cases. Certified job creation projects can also get up to 5,000 dollars per job. The Economic Assistance Coordinating Council can make the credit refundable. EDIP credit M.G.L. c. 23A § 3D Statewide awards are capped at 30 million dollars per calendar year. Massachusetts tax expenditure budget | The business has to be designated a certified project by the EACC, normally with job creation and retention commitments and a municipal endorsement from the host community. Economic Development Incentive Program The program is not specific to AI data centers. No AI data center award appeared in the EACC announcements I reviewed. EDIP credit | Active. EDIP credit |
County and local programs
Bristol County
Mansfield was the first town in Massachusetts to adopt a near total zoning ban on AI data centers, in May 2026. Boston.com
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Mansfield data center zoning bylaw, Article 23 | No incentive. At Annual Town Meeting on May 5, 2026 voters approved Article 23, a zoning amendment defining data centers by tier. Tier 1 means a maximum projected electrical demand of 2 megawatts or less. Tier 2 means 2 to 10 megawatts. Only Tier 1 facilities are allowed, only in certain industrial and business districts, and only with a data center special permit. Medium and large projects are barred townwide. Town of Mansfield zoning bylaw amendments Telegram and Gazette | Adopted at town meeting and subject to Attorney General review of the bylaw. A town bylaw takes effect only when the Attorney General approves it or 90 days pass with no action from that office. M.G.L. c. 40 § 32 Town officials framed it as protecting electricity and water resources and keeping control over proposals. Boston.com Boston Herald | Pending. As of July 24, 2026 the town still posts the Article 23 language as adopted on May 5, 2026 and awaiting the Attorney General. I found no posted decision from that office on it. Town of Mansfield zoning bylaw amendments |
Hampden County
The center of the Massachusetts fights over AI data centers. Holyoke became the first city in the state to ban new ones in June 2026, and Westfield adopted a one year moratorium in July 2026 over a long running hyperscale proposal. MassLive Western Mass News
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Westfield chapter 121A PILOT for the Servistar data center campus | The Westfield City Council conditionally approved a 40 year chapter 121A agreement with a section 6A contract in October 2021 for a proposed hyperscale campus near Barnes airport. The vote was 9 to 3. Boston Globe M.G.L. c. 121A § 6A M.G.L. c. 121A § 10 The campus was reported as 10 three story buildings totaling about 2.7 million square feet on roughly 155 acres. Servistar Realties would pay about 352 million dollars over 40 years in lieu of normal property taxes. That is a fraction of standard taxes on a project that size. The deal also exempts the project's computer hardware from local personal property tax. The 40 year clock starts only at certificate of occupancy. The agreement sets no groundbreaking deadline. The Shoestring Current reporting puts the project at about 4 billion dollars. That supersedes the smaller figures that circulated earlier. MassLive Boston Globe | The agreement is conditional. The Executive Office of Housing and Livable Communities says it is not currently in effect because required state, local, and federal approvals were never completed. The Shoestring The 2021 agreement itself still stands. As of June 2026 the developer was asking the city to extend a building permit that expires in October 2026. Mayor McCabe kept reviewing the project. Servistar says it will run as an isolated island off the local grid. But it had not yet applied to ISO New England for interconnection. That queue runs about five years. MassLive On July 6, 2026 the City Council voted unanimously for a 365 day moratorium barring the city from accepting or approving any AI data center application. The vote followed a first vote on June 18 and a Planning Board recommendation. City officials said the already approved Servistar project is not affected by the moratorium. Western Mass News The Reminder The Shoestring | Blocked until July 6, 2027. The adopted ordinance, Westfield Zoning Ordinance Section 5-32, 1) sets that end date, 2) reaches the permitting, construction, expansion, conversion, establishment, or operation of any AI data center in the city, and 3) stays any pending AI data center application. City of Westfield Zoning Ordinance Section 5-32 The Board of Health can extend it once by up to 180 days. It ends early if the city adopts permanent AI data center zoning first. City of Westfield Zoning Ordinance Section 5-32 |
| Holyoke zoning ban on new data centers | No incentive. Holyoke went the other way. The City Council voted 9 to 4 on June 16, 2026 to amend the zoning ordinance to define data center and prohibit new ones. Mayor Joshua Garcia signed it on June 18, 2026. That made Holyoke the first city in Massachusetts to fully ban them. The Massachusetts Green High Performance Computing Center may keep operating but only up to 12 megawatts. MassLive Daily Hampshire Gazette | The ban ended a Chestnut River Power and Infrastructure concept for a roughly 200 million dollar, 20 megawatt AI data center at a defunct Water Street mill site. The project was drawn by the city's low cost hydropower. MassLive WAMC on the Chestnut River pitch The Shoestring Councilors sent a separate proposal back to subcommittee to study AI data center impacts through June 30, 2027. MassLive | In effect now with no expiration date. The city council record for June 16, 2026 shows the Ordinance Committee recommending adoption of the order. The order adds a definition of data center as a use and makes that use not allowable in any zoning district in the city. The order carries no time limit. Holyoke City Council agenda, June 16, 2026 |
Middlesex County
Lowell hosts the largest AI data center in Massachusetts, gave it a tax break in 2015, and in March 2026 became the first community in the state to freeze new construction. Lowell Sun MassLive
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Lowell tax increment financing agreement for the Markley Group data center | The Lowell City Council approved the break in May 2015 for Markley's data center at the former Prince Pasta factory in the Sacred Heart neighborhood. The break was tied to a commitment to invest 200 million dollars and hire 100 workers. Lowell Sun It took the form of a tax increment financing agreement worth about 77 million dollars. The council passed it on a unanimous nine member vote. Lowell Sun Advocates put the same 77 million dollar figure over a 20 year term. Yale Law School The 352,000 square foot facility opened in 2016. It is the largest in the state. Yale Law School MassLive | A negotiated city agreement tied to this specific project. On March 10, 2026 the City Council voted 10 to 0 for a 360 day moratorium on new AI data center construction and expansion. The council can extend it one time by a two thirds vote for up to 180 more days. It ends early if the city adopts data center zoning first. It was the first such moratorium in Massachusetts. It paused Markley's own expansion plans. Lowell Sun MassLive Separately, on April 30, 2026 Lowell residents sued in Superior Court challenging the state air permit for the facility's diesel generators. The Conservation Law Foundation, the Yale Law School environmental justice clinic, and Fitch Law Partners represent them. Conservation Law Foundation Yale Law School | Both pieces are live. The ordinance imposes the 360 day moratorium effective immediately. The clock started with the March 10, 2026 vote and runs into early March 2027. City of Lowell data center zoning ordinance The 2015 tax increment financing agreement was still in force at the city planning review of September 19, 2024. At that review staff reported that Markley was meeting the terms of the TIF agreement. Lowell Planning Board minutes, September 19, 2024 |
Worcester County
Northborough tightened its zoning at the 2026 Annual Town Meeting so that only small AI data centers are allowed and only by special permit. Articles approved at the 2026 Annual Town Meeting
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Northborough data center zoning bylaw amendment | No incentive. Town Meeting approved the zoning article at its 2026 annual session held April 27, 28 and 29. The article amends Zoning Bylaw sections 7-05-020 and 7-05-030 to add a data center definition and regulate the use. Articles approved at the 2026 Annual Town Meeting An AI data center is now allowed only 1) in the Industrial District, 2) with a special permit from the Planning Board, and 3) up to a maximum projected electrical demand of 5 megawatts at full build out. 2026 Annual Town Meeting warrant Community Advocate Boston Herald Before the change, AI data centers were allowed in town as of right. The bylaw defines a data center as a building or group of buildings whose primary purpose is to house information technology equipment for the storage, processing, management, or transmission of electronic data. The definition also covers supporting cooling, power, fire suppression, and security systems. Community Advocate | A special permit from the Planning Board plus the 5 megawatt cap. The town called the measure a stopgap while the Planning Board prepares a fuller data center bylaw. For scale, the Iron Mountain facility already in Northborough is a 3.6 megawatt site. The cap admits roughly one more of that size. Community Advocate | Pending final review. The Planning Board official list of zoning articles approved at the 2026 Annual Town Meeting carries this change as Article 53. Article 53 amends Sections 7-05-020 and 7-05-030 and adds a new Section 7-10-070 holding the special permit criteria the board has to weigh. Zoning articles approved at the 2026 Annual Town Meeting I could not confirm from a primary source that the Attorney General has finished the review every Massachusetts town zoning amendment has to clear. The town still posts its codified zoning bylaw as the 2024 revision. Northborough zoning bylaws and regulations |
Michigan takes its 6 percent sales and use tax off AI data center equipment through two programs, a 2015 colocation exemption and a 2024 enterprise exemption for projects of 250 million dollars or more, and the 2024 amendments ran both of them out to 2050. MCL 205.54ee MCL 205.94cc There is no break on electricity and no income tax credit. The odd part is that as of July 2026 not one company had applied for the newer enterprise program, while bills to repeal the exemptions and to pause the industry sat in committee. MLive House Bill 5396 House Bill 5594
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Qualified data center sales and use tax exemption | This program lifts the 6 percent sales and use tax off AI data center equipment. MCL 205.52 The exemption applies when the equipment is sold to 1) the owner or operator of a qualified data center, 2) a colocated business, or 3) a contractor who affixes it to the building. MCL 205.54ee(1) MCL 205.94cc It runs from January 1, 2016 through December 31, 2050. The 2024 amendments pushed the original 2035 sunset out by fifteen years. MCL 205.54ee Sales Tax Institute Bridge Michigan The sales tax side came in as 2015 PA 251 and was amended by 2024 PA 207. The use tax side came in as 2015 PA 252 and was amended by 2024 PA 181. MCL 205.54ee history MCL 205.94cc history Colocation tenants are written into the statute by name, so they qualify in their own right. MCL 205.54ee(1) Treasury figures reported in July 2026 show at least 212 million dollars of equipment bought tax free from 2020 through 2024. That erased just under 13 million dollars of state revenue. Treasury has no figures at all for 2016 through 2019 because the reporting duty was not added until 2020. MLive | The building has to be a qualified data center. The statute defines that as one that draws 75 percent or more of its revenue from colocated businesses that are not affiliates of the owner or operator. MCL 205.54ee(10)(i) There is no minimum investment, no wage floor, no public application, and no clean energy, water, or ratepayer condition anywhere in this one. MCL 205.54ee What the statute does demand is a headcount. Keeping the exemption alive past January 1, 2022 took a certification of at least 400 statewide data center industry jobs since 2016. Keeping it past January 1, 2026 took at least 1,000. MCL 205.54ee(3) Michigan treats the identity of the companies claiming the exemption as confidential taxpayer information, so nobody outside Treasury knows who is using it. MLive | Active through December 31, 2050. The 1,000 job test was met. The paperwork went where the statute says it has to go. Michigan Strategic Fund president Quentin Messer sent a memorandum dated December 12, 2025 to Governor Whitmer, both Senate leaders, and both House leaders. The memorandum reported that local economic development corporations had verified 2,972 data center industry or related jobs created since January 1, 2016. It also reported that Treasury had confirmed the extension through 2050. Qualified Data Centers Jobs Creation Report The count is wide by design rather than by stretch. The statute adds up jobs at the qualified data centers, at their colocated businesses, and at their contractors together. MCL 205.54ee(3) |
| Enterprise data center sales and use tax exemption | This program lifts the 6 percent sales and use tax off AI data center equipment and off construction materials that become part of the building. MCL 205.52 The facility has to hold a Michigan Strategic Fund certificate. MCL 205.54ee(4) Michigan Economic Development Corporation It runs through December 31, 2050. It runs through December 31, 2065 if the site sits under a brownfield plan or once held a power plant. The exemption reaches the certified company, its affiliates, and its contractors. It does not reach unrelated colocation tenants. No new certificate can issue after December 31, 2029. MCL 205.54ee | At least 250 million dollars of aggregate new capital investment and at least 30 qualified new jobs paying 150 percent or more of the prosperity region median wage. Both have to be held through 2050 or 2065. MCL 205.54ee(5) The applicant has to 1) state a timeline no longer than 6 years for hitting every criterion, 2) earn a green building certification within 3 years of being placed in service, 3) take municipal water from a system that has capacity to spare, and 4) procure clean energy equal to 90 percent of forecasted annual electricity use. MCL 205.54ee(10)(e) It cannot take state or local property tax benefits unless every affected local government signs a resolution approving them. It cannot take service under a rate that makes residential customers subsidize it. MCL 205.54ee(10)(e) Lose the certificate inside 10 years and the company repays every dollar of exemption it claimed plus interest. After 10 years it still repays the whole amount unless the Michigan Strategic Fund allows a cut. The cut cannot go below half. MCL 205.54ee(7) | Enacted at the end of 2024, in force since spring 2025, and so far completely unused. The Legislature's own compiler puts the use tax amendment in 2024 PA 181 into effect on April 2, 2025. It puts the sales tax amendment in 2024 PA 207 into effect on April 17, 2025. That is why published summaries give two different dates for what looks like one package. MCL 205.94cc history MCL 205.54ee history As of July 2026 no company had applied and the Michigan Strategic Fund had issued no certificates. Related Digital is building the only hyperscale project under construction in the state. It told MLive it plans to use the older 2015 exemption instead. MLive The certificate window still shuts on December 31, 2029. MCL 205.54ee |
| Industrial Facilities Exemption local property tax abatement | State law lets a city, village, or township grant this local abatement. It cuts the property tax on new real and personal property investment roughly in half for up to 12 years. Industrial Facilities Exemption The law behind it is 1974 PA 198, the Plant Rehabilitation and Industrial Development Districts Act, codified at MCL 207.551 to 207.572. 1974 PA 198, MCL 207.551 to 207.572 It was written for manufacturers and high technology plants and says nothing about AI data centers. It has still become the main local incentive Michigan AI data centers actually receive. Van Buren Township approved one for Google on May 19, 2026 that township officials valued at nearly 125 million dollars over the 12 year term. MLive Belleville Area Independent Saline Township approved one for Oracle in July 2026 on a project the abatement application valued at 43 billion dollars. MLive | The local government has to create an industrial development district or a plant rehabilitation district and approve the exemption certificate by resolution. The State Tax Commission gives final approval and issues the certificate after the Treasury Property Services Division and the Michigan Economic Development Corporation review it. Industrial Facilities Exemption Local boards have been bolting their own terms onto these deals, including clawbacks, community payments, local hiring, and noise compliance. MLive Bridge Michigan An enterprise data center that accepts this or any other property tax benefit without a resolution from every affected local unit forfeits its sales and use tax exemption. MCL 205.54ee(10)(e)(vi) | Active general program. Two large AI data center awards cleared at the local level in 2026. One went to Google in Van Buren Township on May 19. The other went to Oracle in Saline Township in July. MLive MLive Neither one holds a state certificate yet. The State Tax Commission issued its June 9, 2026 batch of new certificates without either project in it. The next regular commission meeting is August 18, 2026. State Tax Commission new certificates June 9, 2026 State Tax Commission meeting notice |
| Renaissance Zone designation | A Michigan Strategic Fund zone designation frees a business from most state and local taxes for up to 15 years. That includes real and personal property taxes. It does not include the corporate income tax. Michigan Renaissance Zone Act Michigan Renaissance Zone Act CY 2023 Legislative Report The act is 1996 PA 376, and it is codified at MCL 125.2681 to 125.2696. Michigan Renaissance Zone Act, 1996 PA 376 This is the broadest tax break an AI data center in Michigan has actually used. Switch holds the only designation of that kind I could verify. It is a 15 year agreement signed with the Michigan Economic Development Corporation in 2016 for its campus in Gaines Charter Township in Kent County. Crain's Grand Rapids Business Governing | An application to the Michigan Strategic Fund, consent from the affected city, township, or village, and a development agreement. Michigan Renaissance Zone Act Michigan Renaissance Zone Act CY 2023 Legislative Report The enterprise data center statute treats a Renaissance Zone as a property tax benefit. Taking one voids the sales and use tax exemption unless every affected local government approves it by resolution. MCL 205.54ee(10)(e)(vi) | Active general program. Switch got its designation in 2016. I found no AI data center designation after that one. Crain's Grand Rapids Business Governing |
| MPSC large load tariff terms and special contract guardrails | This is a guardrail, not an incentive. Michigan gives no tax break on AI data center electricity. It stays subject to the 6 percent sales tax because the equipment exemption does not reach power purchases. MCL 205.54ee MCL 205.52 On November 6, 2025 the MPSC approved Consumers Energy terms for very large customers. The terms are built around 1) a 15 year contract term, 2) a five year ramp to full service, and 3) a 100 megawatt threshold. They are designed so that no other customer subsidizes a new large load. MPSC On December 18, 2025 the commission conditionally approved DTE Electric special contracts to serve about 1.4 gigawatts at the Saline Township AI data center. The conditions put a payment default on DTE rather than on customers. They also put the AI data center load first in line to be shed in an energy emergency. MPSC | The Consumers Energy terms apply to new loads of 100 megawatts or more. DTE special contracts are handled case by case. MPSC MPSC The Consumers Energy terms came out of MPSC Case No. U-21859. MPSC Case No. U-21859 The tax statute separately bars an enterprise data center from taking service under rates that make residential customers subsidize it. It also requires clean energy procurement equal to 90 percent of forecasted use. MCL 205.54ee(10)(e) The tax statute puts that rate bar at MCL 205.54ee(10)(e)(x). That section also lists the long term industrial load rate under MCL 460.10gg and the tariff rates approved in MPSC Case No. U-21160, U-21163, and U-21646. MCL 205.54ee(10)(e)(x) Attorney General Nessel asked the commission to reopen the DTE approval as a contested case. The commission voted 3 to 0 on March 27, 2026 to deny reconsideration on standing grounds. Nessel filed a claim of appeal in the Michigan Court of Appeals on April 17, 2026. Detroit Free Press Attorney General | Consumers Energy terms in force since November 6, 2025. DTE Saline contracts approved December 18, 2025. MPSC MPSC Rehearing was denied March 27, 2026. The Attorney General's appeal has been pending in the Court of Appeals since April 17, 2026. Detroit Free Press Attorney General |
County and local programs
Allegan County
Dorr Township passed a 12 month AI data center moratorium after Microsoft assembled land along US-131 in the township, and no local incentive has been granted. Wilcox Newspapers WGVU
Kent County
The Switch campus in Gaines Charter Township holds Michigan's only verified AI data center Renaissance Zone, a 15 year exemption from most state and local taxes worth about 1.1 million dollars a year. Crain's Grand Rapids Business Microsoft owns 316 acres nearby that it bought from Steelcase for 45.3 million dollars. MLive Its rezoning request has twice run into crowds. On December 18, 2025 the planning commission called off a hearing that overflowed a 250 seat hall. WGVU On April 15, 2026 the commission sat for five and a half hours and then voted 7 to 0 to table the request. WOOD Radio Sun and News
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Switch Renaissance Zone in Gaines Charter Township | A 15 year Renaissance Zone agreement signed with the Michigan Economic Development Corporation in 2016 frees the Switch AI data center from most state and local taxes. The AI data center is built inside the former Steelcase pyramid. The agreement saves it about 1.1 million dollars a year. Crain's Grand Rapids Business Governing Switch also entered a payment in lieu of taxes arrangement that hands part of the savings back to local taxing units. I found no published record of how the Kent County board voted on the designation. Crain's Grand Rapids Business The designation runs under the Michigan Renaissance Zone Act, 1996 PA 376, codified at MCL 125.2681 to 125.2696. Michigan Renaissance Zone Act, 1996 PA 376 | Consent from Gaines Charter Township and Kent County plus a Michigan Strategic Fund designation. Crain's Grand Rapids Business Switch promised 5 billion dollars of investment and 1,000 jobs when it went after state and local tax breaks in 2015. Bridge Michigan reported the site had produced 26 jobs by 2022. That gap is now a fixture of the statewide argument over AI data center incentives. Bridge Michigan Governing Switch has since built out the campus and announced a 700 million dollar expansion. MLive | Active. The Michigan Strategic Fund calendar year 2023 Renaissance Zone report went to the Legislature on September 3, 2025. It still lists Switch, Ltd. in Gaines Charter Township as a designated zone. The report says zones that expired or were revoked get dropped from later reports. Michigan Renaissance Zone Act CY 2023 Legislative Report The same report puts the first year of benefits at January 1, 2017. It says the tax break phases out in 25 percent steps across the final three years of a zone. Michigan Renaissance Zone Act CY 2023 Legislative Report That CY 2023 report is the newest one I could find. No state document I read names an exact expiration date for this zone. |
Livingston County
Howell Township is under an AI data center moratorium. The township first enacted it on November 20, 2025 and extended it on May 11, 2026 to run through November 2026. The moratorium follows a withdrawal on December 7, 2025. A developer reportedly backed by Meta pulled its request to conditionally rezone more than 1,000 acres along Grand River Avenue for a 1 billion dollar campus. Planet Detroit MLive The township is drafting local rules in the meantime, and there is no local incentive here. MLive
Washtenaw County
Home of The Barn, the Oracle and OpenAI hyperscale campus in Saline Township. The project broke ground on June 1, 2026 and won a 12 year abatement in July 2026 that cuts its local property taxes in half. That came on top of a settlement worth 14 million dollars to the township and three local fire departments. MLive MLive The reported price tag has climbed all year, from more than 7 billion dollars when the deal was announced, to 16 billion dollars of financing closed in April 2026, to the 43 billion dollar figure in the July abatement application. Wall Street Journal Reuters Related Digital press release, April 24, 2026 MLive Augusta Township voters decide a rezoning referendum on August 4, 2026, and Ypsilanti Township is fighting a University of Michigan and Los Alamos computing facility it has no power to zone. MLive Planet Detroit Bridge Michigan
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Saline Township Industrial Facilities Exemption Certificate for The Barn | A 12 year exemption cuts real and personal property taxes in half for Oracle America Cloud Services LLC. It applies at the 250 acre AI data center Related Digital is building for Oracle and OpenAI. MLive The township first approved the abatement in mid July 2026. It capped the taxable value at the 4.8 billion dollar figure used in the 2025 settlement. Then it reversed itself on July 17, 2026 and voted 5 to 0 to strike the cap. Its attorney had warned that capping it would breach the consent judgment. The attorney also warned that state law does not let a local government limit the amount. MLive Bridge Michigan Oracle projects the site will still pay about 147 million dollars a year in local property taxes with the abatement, against roughly 300 million dollars a year without it. A clawback the board added stays in place. Bridge Michigan Bridge Michigan reports the local tax payments from the AI data center breaking down to 1) about 26 million dollars a year for the schools, 2) about 4 million dollars a year for the district library, and 3) about 10 million dollars a year for the township. Bridge Michigan | Granting the certificate was a term of the October 2025 consent judgment that settled the developer's exclusionary zoning lawsuit. Oracle filed the signed application on May 18, 2026. MLive MLive Bridge Michigan The State Tax Commission gives final approval and issues the certificate after the Treasury Property Services Division and the Michigan Economic Development Corporation review it. The project was not in the commission's June 9, 2026 batch of new certificates. Industrial Facilities Exemption State Tax Commission new certificates June 9, 2026 The abatement itself runs under 1974 PA 198, the Plant Rehabilitation and Industrial Development Districts Act, codified at MCL 207.551 to 207.572. 1974 PA 198, MCL 207.551 to 207.572 | Approved locally. The state certificate has not issued. The Saline Township Board finished its side on July 17, 2026. MLive The State Tax Commission still has to issue the certificate. It does not meet again until Tuesday, August 18, 2026 in Okemos. State Tax Commission new certificates June 9, 2026 State Tax Commission meeting notice |
| Related Digital consent judgment community payments in Saline Township | Under the October 2025 settlement Related Digital agreed to pay a total of 14 million dollars to Saline Township and three local fire departments. That total includes 4 million dollars for a trust fund to preserve farmland in the township. It also includes 2 million dollars for a community investment fund covering things like playgrounds and upkeep of township buildings and cemeteries. MLive Planet Detroit The consent judgment also rezoned the site to I-1 industrial. It set conditions on farmland protection, wetlands, water use, and noise. The developer carries construction and infrastructure costs. The Sun Times News | The township board voted 4 to 1 on September 10, 2025 to deny rezoning about 575 acres of farmland. Related Digital and the landowners sued two days later claiming exclusionary zoning. The board voted 4 to 1 in October 2025 to settle. The Sun Times News Planet Detroit A township advisory committee monitors compliance. Related Digital also promised not to develop about 476 acres it owns in neighboring Bridgewater Township. MLive Two elected officials resigned, and recall efforts followed. Bridge Michigan In February 2026 a Washtenaw County judge denied a resident’s motion to intervene in the settlement. The court held that intervention by right is not possible in a closed case and that the request came too late. Planet Detroit WEMU | In force. The Washtenaw County Circuit Court entered the consent judgment on October 15, 2025. It has survived the challenges brought against it so far. Planet Detroit It is still doing work. In July 2026 the township attorney warned that capping the Oracle tax break would violate the judgment. The board dropped the cap 5 to 0. Planet Detroit |
Wayne County
Van Buren Township granted Google the state's first big AI data center property tax abatement on May 19, 2026 for Project Cannoli, a roughly 1.5 million square foot, 1 gigawatt campus near the Interstate 94 and Interstate 275 interchange west of Detroit Metro Airport. MLive Belleville Area Independent
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Van Buren Township Industrial Facilities Exemption for the Google data center | Local property taxes on an estimated 152 million dollars of buildings and more than 2 billion dollars of computer equipment are cut in half for 12 years. The township put Google's savings at nearly 125 million dollars. MLive Google is expected to pay between 6 million and 12 million dollars in local taxes a year. That comes to about 124 million dollars over the life of the certificate. The payments are split among the township, the libraries, the schools, Wayne County, and other local units. Crain's Detroit Business Bridge Michigan | The township board voted unanimously on May 19, 2026 to create Industrial Development District 27 on about 280 acres between Haggerty Road, Hannan Road, and the Interstate 94 north service drive. It also voted to approve the real and personal property exemptions. The real property exemption covers a 36 month construction period plus the 12 year abatement. Belleville Area Independent In exchange Google agreed to 1) pay the township 15.4 million dollars to seed a local infrastructure fund, 2) create at least 51 full time jobs at the AI data center, 3) hold at least one local employment fair, and 4) award at least 5 percent of the construction work to local contractors. Of the 15.4 million dollars, 5.5 million is due within 120 days of the start of building construction and the rest comes in annual payments. MLive Google also pledged 10 million dollars for household energy efficiency and workforce development. It agreed to sound studies after construction. The tax deal is on the line if it breaches the noise terms. Crain's Detroit Business Belleville Area Independent The State Tax Commission had not issued the certificate as of its June 9, 2026 meeting. State Tax Commission new certificates June 9, 2026 The abatement itself runs under 1974 PA 198, the Plant Rehabilitation and Industrial Development Districts Act, codified at MCL 207.551 to 207.572. 1974 PA 198, MCL 207.551 to 207.572 | Approved locally. The state certificate has not issued. The township board minutes for May 19, 2026 record three resolutions. Resolution 2026-09 created Industrial Development District #27. Resolution 2026-10 granted Google LLC the real property exemption. Resolution 2026-11 granted the personal property exemption. Van Buren Township Board of Trustees minutes, May 19, 2026 The State Tax Commission has not issued the certificate. Google was not in the June 9, 2026 batch. The commission does not meet again until Tuesday, August 18, 2026. State Tax Commission new certificates June 9, 2026 State Tax Commission meeting notice |
Minnesota refunds state sales tax on AI data center equipment and software for up to 35 years and does not tax business personal property. Minn. Stat. § 297A.68, subd. 42 Minn. Stat. § 272.02, subd. 9 A June 2025 law ended the electricity exemption and added annual fees, prevailing wage rules, and a green building clawback for the largest projects. Minnesota House new laws summary The 2026 regular session ended on May 18, 2026 without changing any of it. MPR News, June 12, 2026 Minnesota House Session Daily, May 18, 2026
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Qualified Data Center Sales and Use Tax Exemption | The state refunds sales and use tax on enterprise information technology equipment and computer software used in a certified data center. The refund covers purchases made within 35 years of the first qualifying purchase. Minn. Stat. § 297A.68, subd. 42 The 35 year window replaced a 20 year window in June 2025. Minnesota House new laws summary Buyers pay the tax at purchase and then request refunds on Form ST11. They may file up to two refund requests per calendar year. Minnesota Department of Revenue Each tenant business in a co-located certified facility may file its own refund claims. Each owner of a multi-owner facility applies separately. Minnesota Department of Revenue Minn. Stat. § 297A.68, subd. 42 Legislative Budget Office review 4.72 Covered items include 1) servers, routers and other computing, networking and storage equipment, 2) cooling systems and cooling towers, 3) power infrastructure including business-owned substations, 4) backup generation and battery systems, 5) racks, trays and cabling, and 6) software loaded and kept at the facility along with its installation and maintenance agreements. Items that stay taxable include 1) building materials, 2) diesel fuel or gasoline burned in backup generators, 3) fire suppression systems, 4) security systems, 5) office furniture, and 6) software that does not remain at the facility. Minnesota Department of Revenue Minn. Stat. § 297A.68, subd. 42 | The Department of Employment and Economic Development must certify the facility before any refund is paid. DEED data center exemption page Minn. Stat. § 297A.68, subd. 42 A new AI data center needs at least 25,000 square feet across one or more buildings on a single parcel or contiguous parcels. It also needs at least 30 million dollars of construction, equipment and software cost within a 48 month period. A refurbished facility needs at least 25,000 square feet rebuilt or modified. It also needs at least 50 million dollars within a 24 month period. Minn. Stat. § 297A.68, subd. 42 The building must have uninterruptible power supplies or generator backup, sophisticated fire suppression and prevention, and enhanced security. Office, meeting and mechanical space counts toward the square footage if it supports the equipment. Minnesota Department of Revenue Minn. Stat. § 297A.68, subd. 42 There is no job creation or wage requirement at these two tiers. Facilities certified before July 1, 2042 can keep claiming refunds past that date up to the 35 year limit. Minn. Stat. § 297A.68, subd. 42 | Active. The certification window runs to July 1, 2042. Minn. Stat. § 297A.68, subd. 42 |
| Qualified Large-Scale Data Center tier with fees and clawback | This tier extends the same 35 year sales tax refund on enterprise information technology equipment and computer software to a new large-scale category. It covers purchases made after June 30, 2025. Minn. Stat. § 297A.68, subd. 42 Investment by colocation tenants counts toward the threshold. That is what makes the tier reachable for a multi-tenant AI campus. Senate Taxes summary of SF 769 The law took effect June 15, 2025 except where the act says otherwise. Minnesota House new laws summary | A facility needs at least 25,000 square feet in one or more buildings connected to each other by fiber. Those buildings may sit in one physical location or several. It also needs at least 250 million dollars of construction, refurbishment, equipment and software cost, collectively by the facility and its tenants. That spending must occur within a 60 month period that begins after June 30, 2025. Minn. Stat. § 297A.68, subd. 42 Minnesota Department of Revenue Laborers and mechanics doing construction or refurbishment work must be paid the prevailing wage under Minn. Stat. § 177.42. The operator must certify that compliance to the Department of Employment and Economic Development before the department will certify the facility. Within three years of being placed in service, the facility must certify to the commissioner of commerce that it has earned one of eight listed sustainable design or green building certifications. The listed options include LEED, Energy Star, BREEAM, Envision, ISO 50001, Green Globes and UL 3223. A facility that does not earn one must repay the full amount of the exemption to the Department of Revenue. Minn. Stat. § 297A.68, subd. 42 Ryan LLC analysis Large-scale facilities also pay an annual state fee set by peak demand forecast. The fee runs 1) 2 million dollars for 100 to 250 megawatts, 2) 3 million for 251 to 500, 3) 4 million for 501 to 750, and 4) 5 million above 750. The money flows to an energy and conservation account for utility programs that benefit low-income households. A new applicant is routed to the Minnesota Business First Stop Program for coordinated permitting. Proposed consumptive water use above 100 million gallons per year triggers special permit conditions. Minnesota House new laws summary Larkin Hoffman analysis | Active. This tier was enacted in June 2025 and left alone by the 2026 session. That session adjourned May 18, 2026. MPR News, June 12, 2026 Minnesota House Session Daily, May 18, 2026 |
| Electricity sales tax exemption for qualified data centers | Before July 1, 2025 a certified AI data center could claim refunds of sales tax paid on electricity. Electricity bought on or after that date is taxable for every facility. Minnesota House new laws summary Minnesota Department of Revenue Refund claims for electricity used before the repeal can still be filed on Form ST11. They cover the period between the date the facility met the qualification requirements and the date it was certified. Minnesota Department of Revenue | The exemption applied only to certified qualified data centers. It also applied only to electricity used on or after the date the facility met the qualification requirements. Minnesota Department of Revenue | Repealed effective July 1, 2025. Larkin Hoffman analysis Minnesota Department of Revenue |
| Statewide exemption of business personal property from property tax | Servers, racks, and other business personal property are exempt from Minnesota property tax statewide. An AI data center therefore pays property tax only on its land and buildings. The exemption applies automatically with no application and no approval. Minn. Stat. § 272.02, subd. 9 | There is nothing to meet for ordinary business equipment. The statute keeps personal property taxable when it is part of an electric generation, transmission, or distribution system, a pipeline system, or certain other utility property. Minn. Stat. § 272.02, subd. 9 | Active. Minn. Stat. § 272.02, subd. 9 |
County and local programs
Dakota County
Rosemount held a tax abatement hearing for the Meta campus at UMore Park in June 2023 at an estimated value of zero dollars. City of Rosemount hearing notice Star Tribune on the Rosemount abatement The council then adopted a one year moratorium on new AI data centers in April 2026. Rosemount Ordinance 2026-03
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Rosemount tax abatement for the Meta technology campus | The City of Rosemount noticed a public hearing for June 20, 2023 on a tax abatement for a proposed technology campus. The campus sits on two parcels at 1367 145th Street East. This is the UMore Park site that Meta develops through its entity Jimnist LLC. City of Rosemount hearing notice Star Tribune on the Rosemount abatement The city's own notice put the estimated total amount of the abatement over its term at zero dollars. The city does not expect the project's taxes to exceed the threshold it keeps. City of Rosemount hearing notice Star Tribune on the Rosemount abatement MPR News, May 4, 2026 Local reporting has described the arrangement as a hedge for Meta against future changes in how the state values AI data center property rather than a cash benefit. Star Tribune on the Rosemount abatement MPR News, May 4, 2026 I could not locate an adopted abatement resolution or a signed agreement for the Meta parcels in the city's public records as of July 19, 2026. So the term of the abatement and the amount of tax the city retains each year rest on nothing primary. City of Rosemount hearing notice Dakota County did not offer its own financial incentive for the project. Star Tribune on the Rosemount abatement MPR News, May 4, 2026 | The abatement applies only to the Meta project parcels in Rosemount. The city grants abatements under its Business Subsidy Policy and under the general municipal abatement statute. It adopted that policy by Resolution 2022-78 on June 21, 2022. Rosemount Resolution 2022-78 and Business Subsidy Policy Minn. Stat. § 469.1813 Separately, on April 21, 2026 the council voted unanimously to adopt interim Ordinance 2026-03. That ordinance is a one year moratorium on new AI data center applications that runs to April 2027. Rosemount Ordinance 2026-03 Sun This Week The moratorium does not touch the Meta project but it blocks any new application until 2027. | Approved and in force. The Rosemount City Council held the noticed public hearing on June 20, 2023 and closed it that night. Rosemount City Council minutes for June 20, 2023 The instrument before the council was Resolution 2023-75, which grants the abatement and approves the form of the tax abatement agreement. June 20, 2023 council agenda packet The city's recording of that meeting shows the motion to approve the abatement resolution made, seconded and carried. The written minutes record the hearing but not that vote. City of Rosemount recording of the June 20, 2023 meeting The abatement has a maximum term of 20 years and reaches only the city share of the taxes. Dakota County and the school district both declined to participate. The city keeps the first 1 million dollars of city taxes each year and rebates to Jimnist LLC only what runs past that. No later council agenda through July 2026 returns to the abatement. The one year moratorium the council adopted on April 21, 2026 does not reach this campus, because Ordinance 2026-03 exempts work on an existing or approved AI data center project. Ordinance 2026-03 in the April 21, 2026 council packet |
Goodhue County
Pine Island approved a 36.6 million dollar abatement package for the Google backed Project Skyway campus in February 2026. KTTC, February 5, 2026 A Goodhue County judge then halted construction in May 2026. KTTC, May 26, 2026
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Pine Island tax abatement and business subsidy for Project Skyway | At a special meeting on February 4, 2026 the Pine Island City Council voted five to zero to approve business subsidies and tax abatements for Project Skyway. The project covers a roughly 482 acre area partly in the city and partly in Pine Island Township. Ryan Companies is the developer, with Google as the intended tenant. The package totals 36,578,343 dollars. It is issued in two parts across about two decades. KTTC, February 5, 2026 City of Pine Island project page The city administrator said Pine Island still expects to collect more than 131 million dollars in new taxes over that period. The city would also receive developer payments into funds that support the community and the schools. KTTC, February 5, 2026 City of Pine Island project page | The subsidy summary requires the developer to create at least 38 full time on-site jobs paying at least 31 dollars an hour. The job count can rise over time. The developer must also make the agreed community and school payments. KTTC, February 5, 2026 On May 22, 2026 a Goodhue County district judge granted the Minnesota Center for Environmental Advocacy a temporary injunction. The injunction bars Ryan Companies from any construction or pre-construction activity inside the Project Skyway environmental review area until the lawsuit is resolved. The court also 1) found the group likely to succeed on the merits, 2) denied the city and developer motion for summary judgment, and 3) set the security bond at 2,000 dollars. MCEA case updates KTTC, May 26, 2026 The case is in discovery as of July 2026. So the project is stopped even though the abatement stands. | Approved by the Pine Island City Council on February 4, 2026. It is in force now, over a term of about 28 years. City of Pine Island project page Construction is stopped under a Goodhue County court order issued May 22, 2026. The order runs until the environmental lawsuit is resolved. MCEA case updates |
Sherburne County
Amazon bought a 348 acre Becker site next to the Sherco power plant in late 2024 for about 73.6 million dollars, then suspended the project in May 2025 as the Legislature moved to cut AI data center tax breaks. Finance and Commerce KNSI, November 14, 2024 Star Tribune I found no record of any Becker or Sherburne County tax incentive adopted for the Amazon project. The one local package on the books here went to a different company. In March 2019 the Sherburne County board approved an abatement waiving about 390,000 dollars of property tax a year for a proposed Google facility in Becker. That project later fell through. WJON, March 26, 2019
St. Louis County
Hermantown negotiated a large property tax abatement for a proposed Google AI data center, tabled the vote in May 2026, and will not revisit it until a redone environmental study comes back in September or October 2026. Duluth News Tribune KAXE, May 20, 2026 MCEA case updates
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Hermantown proposed tax abatement for the Google data center | The negotiated agreement is with Harmony Group LLC, the Google affiliate. It would rebate about 1.2 million dollars of property tax a year in today's dollars for 28 years. That term runs through roughly 2052. The rebate is capped at 80 million dollars stated in future dollars. Star Tribune Draft tax abatement agreement KAXE, May 20, 2026 Under the mechanism, the city keeps the first 100,000 dollars of property tax each year. It returns 85 percent of what is paid above that. KAXE, May 20, 2026 The Star Tribune put the present value at about 33.5 million dollars. Star Tribune In return Google would spend about 130 million dollars extending utilities and infrastructure to the site. It would also pay the city and the Hermantown school district about 45 million dollars over the following decades. About 4.5 million dollars would go to the city over 20 years. About 40 million dollars would go to the school district over 28 years. KAXE, May 20, 2026 Draft tax abatement agreement The city projects it would still net roughly 448,000 dollars a year in property taxes from the project. KAXE, May 20, 2026 | None of this is in force. On May 4, 2026 the council tabled the development agreement and tax abatement with Harmony Group LLC. It did so after more than two hours of public comment. The delay lets staff and counsel clean up contract language and address legal and environmental questions. Duluth News Tribune The city then decided to redo its Alternative Urban Areawide Review. That review is a roughly seven month process expected to finish around September or October 2026. The council is expected to take up the revised study before it reconsiders the tax package. Harmony Group has said it does not propose to move forward while the new review is underway. KAXE, May 20, 2026 MPR News, June 25, 2026 MCEA case updates As of July 19, 2026 the council had set no date to vote. So whether the abatement passes at all is still open. Google plans up to about 2 billion dollars of investment across four buildings on a 280 acre site. The first phase starts near 650 million dollars. Star Tribune Yahoo News report on the Hermantown open house The draft agreement anticipates a separate St. Louis County abatement. The county board has taken no action on one. Its public involvement so far runs to three commissioners signing nondisclosure agreements with the developer. That drew heavy criticism from residents. Draft tax abatement agreement Star Tribune on the county NDAs Two resident lawsuits are pending. One was brought with the Minnesota Center for Environmental Advocacy over the adequacy of the environmental review. It is now on hold pending the new review. MCEA case updates Duluth News Tribune | Pending. The council tabled the resolution on the tax abatement and development agreements after the public hearing on May 4, 2026. It has set no date to vote. City of Hermantown project page Duluth News Tribune The city is redoing its environmental review first. Written comment on the draft closed July 16, 2026. KAXE, June 22, 2026 |
Wright County
Monticello adopted a Data Center Planned Unit Development ordinance on April 27, 2026 that opens the door to development. MPR News, April 28, 2026 The ordinance itself does not address tax incentives. City policymakers have said they do not think tax increment financing or tax abatement fits this kind of project. City of Monticello data center page The Wright County board went the other way and adopted emergency Ordinance 26-2 on May 19, 2026, freezing AI data center applications in all 18 of its townships for up to a year. Wright County notice
Mississippi lets the Mississippi Development Authority certify an AI data center and then exempts it from sales, use, income, and franchise taxes for ten years, on a low floor of 20 million dollars invested and 20 new jobs. Miss. Code Ann. § 57-113-21 Miss. Code Ann. § 57-113-25 A certified center also buys its electricity and fuel free of sales tax, which is the piece most people miss. Miss. Code Ann. § 27-65-107(f) Counties and cities then add one of two property tax tools, either a plain exemption of up to ten years that cannot touch school taxes or a negotiated fee in lieu that can. Miss. Code Ann. § 27-31-101 Miss. Code Ann. § 27-31-104 The large projects with published terms have all taken the fee in lieu, and the Amazon package in Madison County got its own special session law on top. 2024 Miss. Laws, 2nd Ex. Sess., SB 2001 WAPT, January 25, 2024
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Data Center Enterprise sales and use tax exemption | For ten years a certified enterprise pays no sales or use tax on 1) computing equipment and software used in the data center, 2) replacement hardware and software, and 3) component building materials and equipment used in the initial construction or expansion of the facility. New and replacement equipment both qualify. Miss. Code Ann. § 57-113-21(d) Miss. Code Ann. § 57-113-25(2) Mississippi Development Authority program sheet | To qualify, an enterprise must 1) invest at least 20 million dollars in Mississippi, 2) create at least 20 new full time jobs paying at least 125 percent of the average annual state wage, and 3) apply to the Mississippi Development Authority for certification. Miss. Code Ann. § 57-113-21(a) The enterprise then signs an agreement with the authority. The agreement sets performance requirements and provides for recapture of the exempted taxes if the enterprise falls short. Miss. Code Ann. § 57-113-25(3)(c) The program itself has no sunset. Bills to raise the floor and rewrite the definitions failed in 2024 and again in 2025. HB 1239 amendment report SB 3168 as introduced SB 3106 (2024) bill history HB 1239 (2025) bill history | Active. The current thresholds date from Senate Bill 2271, which took effect July 1, 2019. That act cut the old floor of 50 million dollars and 50 jobs at 150 percent of the state wage down to 20 million dollars and 20 jobs at 125 percent. SB 2271 as sent to the governor Sales Tax Institute, Mississippi amends and creates data center exemptions |
| Data Center Enterprise income and franchise tax exemption | For the same ten year certification period the enterprise pays no state income tax on the income it earns. It also pays no franchise tax on the value of capital it uses, invests, or employs in Mississippi. Miss. Code Ann. § 57-113-21(d)(iii) and (iv) Sales Tax Institute summary | The thresholds match the sales tax piece. They are 1) 20 million dollars invested, 2) 20 new full time jobs, 3) 125 percent of the average annual state wage, and 4) certification by the Mississippi Development Authority. Miss. Code Ann. § 57-113-21(a) Senate Bill 2271 added the income and franchise exemptions. It conformed the franchise tax statute so a certified enterprise is simply not subject to the levy. SB 2271, Sections 1 and 6 The exemption also stays tied to the performance requirements and the authority agreement terms set out in Section 57-113-25. Server Country, Mississippi data center policy | Active from July 1, 2019, the effective date written into the act itself. SB 2271, Section 7 |
| Local ad valorem tax exemption for data centers | A county board of supervisors or a municipality may exempt a qualifying new enterprise from local ad valorem taxes for up to ten years. Two of the eligible classes reach this industry directly. They are data and information processing enterprises meeting Mississippi Development Authority criteria, and data centers as defined in Section 57-113-21. Mississippi Department of Revenue, property tax exemptions Miss. Code Ann. § 27-31-101 The exemption can cover real and personal property, including leasehold interests, used in or necessary to the operation of the enterprise. It does not reach state ad valorem taxes, school district taxes, or the products of the enterprise. That last gap is why the big AI data center projects use a fee in lieu instead. | The local governing authority grants it at its discretion by order spread on its minutes. The initial written request is due by June 1 of the year after the enterprise is completed. Completion means the date operations begin. A first award shorter than ten years can be followed by consecutive periods, but the total can never exceed ten years. Mississippi Department of Revenue, property tax exemptions Miss. Code Ann. § 27-31-101(1) and (2) | Active. Senate Bill 3116 of the 2026 regular session pushed the reverter on this section from June 30, 2026 to June 30, 2028. The governor approved it on March 16, 2026. That act also folded battery energy storage facilities into the eligible classes. SB 3116 SB 3116 bill history Mississippi Department of Revenue, 2026 legislation summary |
| Fee in lieu of ad valorem taxes for large projects | A county or municipality can replace normal property taxes on a large project with a negotiated fee. Unlike the ordinary local exemption, this one reaches school district taxes. Miss. Code Ann. § 27-31-104(1)(a) and (2) The fee cannot be set below one third of the taxes otherwise due. That caps the break at about two thirds. A lower floor of one tenth exists for a project that also qualifies for the renewable energy and battery storage exemption under Section 27-31-46. That floor applies only where the fee in lieu agreement is entered into before July 1, 2030. Senate Bill 2824 of 2026 moved that deadline back from July 1, 2026. Miss. Code Ann. § 27-31-104(4) and (5) SB 2824 (2026), Section 2 The agreement as a whole can run up to thirty years. But no single parcel, real property improvement, or item of personal property may sit under the fee for more than ten years. That is how a thirty year deal and a ten year break coexist in the same document. Butler Snow, Mississippi fee in lieu statute and renewable energy exemptions | The general threshold is a project totaling over 60 million dollars by a new enterprise of a class listed in Section 27-31-101. It can also be met by a minimum capital investment of 60 million dollars by a private company as that term is defined in Section 57-61-5. A separate 100 million dollar category applies only to projects inside an area covered by a Presidential Disaster Declaration issued on or after January 1, 2014. Miss. Code Ann. § 27-31-104(1)(a) The agreement is negotiated with the county board of supervisors or the municipal authorities. It must then get final approval from the Mississippi Development Authority. Miss. Code Ann. § 27-31-104(3) Warren County's board president put the same rule in plainer words in April 2026. She said the statute kicks in on any project over 60 million dollars. She added that the Amazon agreement was nothing exceptional next to an Ergon expansion or an Entergy power plant. Vicksburg Post, April 9, 2026 The attorney general advised Tunica County in January 2022 that nothing in the statutes stops a board from granting a Section 27-31-46 exemption and a fee in lieu at the same time. The AG added that the authority's approval power reaches the fee in lieu agreement itself and not the side agreements folded into it. Mississippi Attorney General opinion to John Keith Perry Jr., January 14, 2022 | Active. House Bill 1063 of 2026 would have pushed back the date by which an agreement had to be signed to reach the one tenth floor. It died in conference on March 28, 2026. MS HB 1063 (2026) bill history |
| Amazon Web Services project package under the Mississippi Major Economic Impact Act | The state package is 1) a ten year corporate income tax exemption, 2) a rebate of 3.15 percent of construction costs, and 3) rolling state tax exemptions that can run as long as thirty years. The package also let Madison County borrow 215.1 million dollars from the state for site infrastructure. It appropriated another 44 million dollars, 32 million of it for training grants. 2024 Miss. Laws, 2nd Ex. Sess., SB 2001 WLBT, February 3, 2024 WAPT, January 25, 2024 A separate provision let Entergy Mississippi and Amazon set a special electricity rate without the usual Public Service Commission fairness review for large customer contracts. State law treats that rate as a trade secret. SB 2001, Section 22 Clarion Ledger, June 18, 2026 | Amazon has to keep investing at least 500 million dollars and add 50 more jobs each year to keep the rolling exemptions. The law carries clawbacks if the investment and job goals are missed. SB 2001 The Madison County project as announced was 10 billion dollars across two campuses with about 1,000 jobs expected by 2034. Amazon now puts its total Mississippi commitment at about 25 billion dollars and roughly 2,000 jobs across Madison, Warren, and Hinds counties. Amazon, April 9, 2026 | Enacted in the January 2024 second extraordinary session. It is still the frame every later Mississippi AI data center deal is built on, including the Vicksburg campus announced in November 2025. Governor Reeves, November 20, 2025 |
| Advantage Jobs Incentive Program | A cash rebate for up to ten years of a share of the state income tax withheld from the wages of new direct jobs. The rebate can run as high as 90 percent of the amount withheld. This is a general jobs program rather than an AI data center program, but a large operator could qualify. Advantage Jobs program sheet BLS Strategies, Mississippi incentives | A data and information processing enterprise must create at least 200 new full time jobs. Those jobs must pay an average annual wage of at least 100 percent of the average annual state or county wage, whichever is less. Most other businesses face a 25 job threshold at 110 percent of the lesser wage. Miss. Code Ann. § 57-62-9 Mississippi Department of Revenue, Tax Incentives, Exemptions and Credits, January 2026 The Department of Revenue pays it out of the Mississippi Advantage Jobs Incentive Payment Fund. Miss. Code Ann. § 27-7-312 | Active. I found no Mississippi AI data center project publicly claiming this program. That is unsurprising given that the 200 job floor is ten times the 20 jobs the data center exemption asks for. Miss. Code Ann. § 57-113-21(a) |
| Sales tax exemption on electricity and fuel for certified data centers | Sales of electricity, current, power, steam, coal, natural gas, liquefied petroleum gas, or other fuel to a data center meeting the criteria in Section 57-113-21 are exempt from sales tax when bought for industrial purposes. Senate Bill 2271 added the words "data center meeting the criteria provided for in Section 57-113-21" to the utility exemption statute in 2019. That put certified centers in the same bucket as manufacturers and technology intensive enterprises. Miss. Code Ann. § 27-65-107(f) SB 2271, Section 3 | The buyer has to meet the Section 57-113-21 criteria. Those are the same 20 million dollars, 20 jobs, and 125 percent of the average annual state wage that drive certification. The purchase also has to be for industrial purposes. Miss. Code Ann. § 27-65-107 Miss. Code Ann. § 57-113-21(a) The exemption sits in the sales tax chapter rather than in the list of exempted state taxes in Section 57-113-21. So it is easy to read the data center article alone and conclude wrongly that power is taxed. Miss. Code Ann. § 27-65-107 Certification itself has to be applied for with the Mississippi Development Authority before construction or acquisition begins. Section 57-113-23 sets out what the application must contain. Server Country, Mississippi data center policy | Active since July 1, 2019. What failed in 2024 and 2025 was a different idea. It would 1) move an electricity exemption into the data center article itself, 2) raise the investment floor to 250 million or 500 million dollars, 3) cover tenants and affiliates, and 4) exclude digital asset mining. House Bill 1239 died in conference on March 29, 2025. HB 1239 amendment report HB 1239 as introduced HB 1239 (2025) bill history SB 3168 as introduced Senate Bill 3168 carried that idea through the Senate in February 2025. It then died in committee on March 18, 2025. Magnolia Tribune, February 25, 2025 BillTrack50, MS SB 3168 |
County and local programs
DeSoto County
Southaven hosts the xAI MACROHARDRR AI data center, announced January 8, 2026 at more than 20 billion dollars, with city and county fee in lieu agreements on top of the state sales tax exemption. The company said it expected to begin operations in February 2026, and as of August 2, 2026 I found no source confirming that it did. Governor Reeves, January 8, 2026
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| xAI fee in lieu agreements with Southaven and DeSoto County | Southaven and DeSoto County support the project through fee in lieu property tax agreements. The Mississippi Development Authority also approved the state data center sales and use tax exemption. State law caps a fee in lieu at ten years for any one parcel or item of property, inside an agreement that may run up to thirty years. The Southaven agreement is posted in the city archive as a 102 page scan. Its section 7(a) sets a fee in lieu term of thirty assessment years, running from the first January 1 after the minimum capital investment is made and the first data center building reaches commercial operation. City of Southaven Mississippi Development Authority Miss. Code Ann. § 27-31-104(4) | A corporate investment above 20 billion dollars retrofitting an existing building near an xAI power plant site in Southaven. Both the county and the city put fee in lieu agreements behind the project, announced in January 2026. I could not source the dates either body approved its own agreement. Magnolia Tribune, January 8, 2026 The power arrangement is the live fight here. By May 2026 xAI was running 46 natural gas turbines at the Mississippi site that the state was not regulating. Its theory is that turbines sitting on flatbed trailers count as mobile. The NAACP has sued. TechCrunch, May 13, 2026 | In effect. The governor's office listed both the Southaven and the DeSoto County fee in lieu agreements as supporting the project when it was announced on January 8, 2026. The AI data center was expected to begin operating that February. Governor Tate Reeves, January 8, 2026 |
| DeSoto County standard property tax abatement | The county advertises a ten year partial abatement on real and personal property that cuts the tax bill by roughly 35 percent. It is a general tool open to industrial projects including AI data centers. DeSoto County economic development This is the Section 27-31-101 local exemption. That is why it is capped at ten years and cannot reach school district taxes. Mississippi Department of Revenue, property tax exemptions Miss. Code Ann. § 27-31-101(1) | The county grants it for qualifying new or expanding industrial investment, by order on the board's minutes. The initial written request is due by June 1 of the year after the enterprise is completed. Mississippi Department of Revenue, property tax exemptions | Active. The authority behind it is Section 27-31-101. The 2026 Legislature moved that section's reverter date from June 30, 2026 out to June 30, 2028. So the current wider version of the eligible class list runs through mid 2028. Miss. Code Ann. § 27-31-101 as amended by SB 3116 |
Hinds County
Clinton and Hinds County jointly approved a fee in lieu agreement on January 15, 2026 for an Amazon AI data center in a former Milwaukee Tool building. It cuts the tax bill by 67 percent for ten years, and by two thirds on the equipment inside for twenty more. WLBT, March 4, 2026 WLBT, Clinton data center records, March 4, 2026
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| City of Clinton fee in lieu of taxes agreement | Under the documents WLBT obtained, the company gets a 67 percent reduction in annual ad valorem taxes for ten years, starting when the first portion of the facility goes into operation. It then gets a two thirds reduction for the next twenty years on the items inside the building such as servers. WLBT, March 4, 2026 Mayor Will Purdie projected about 3 million dollars for the school district and about 2 million dollars for the city in the first year. He projected that annual gains would fall across the decade and climb again in year eleven. Mississippi Today, March 17, 2026 Alderman James Lott used a bigger number in June 2026. He said the AI data center is set to contribute around 12 million dollars a year against a 22 million dollar city budget. I could not find anything the city has published reconciling the two figures. Clarion Ledger, June 18, 2026 | A retrofit of the 690,000 square foot former Milwaukee Tool plant at 1001 Industrial Park Drive. The 99 acre site was deeded to Amazon on February 13, 2026. The project was reported at 750 million dollars in March 2026 and at 1 billion dollars by April. WLBT, March 4, 2026 Mississippi Today, March 17, 2026 Clinton Courier, April 2026 Mayor Will Purdie put the project at 50 permanent jobs plus 800 to 1,000 construction positions in March 2026. WLBT, March 4, 2026 Mississippi Today, March 17, 2026 By the April announcement the figure was 100 jobs, and at the June ribbon cutting it was 100 jobs plus up to 1,500 construction workers at peak. Clinton Courier, April 2026 Mississippi Today, June 9, 2026 Both the Clinton Board of Aldermen and the Hinds County Board of Supervisors approved the agreement at special meetings on January 15, 2026. The Mississippi Development Authority has to sign off on it. Miss. Code Ann. § 27-31-104(3) | In effect. The AI data center was ribbon cut on June 9, 2026 with Clinton and Hinds County leaders present. Mississippi Today, June 9, 2026 |
Lauderdale County
Meridian landed a 10 billion dollar Compass Datacenters campus with state certification, city and county help, and a 4 million dollar legislative site grant. Its first announced tenant was certified for the state incentive in April 2026. Governor Reeves, January 9, 2025 Mississippi Development Authority, April 22, 2026
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Compass Meridian campus local assistance and site grant | Meridian and Lauderdale County support the eight building campus at the I-20 and I-59 Industrial Park. The county worked with the Legislature for a 4 million dollar site grant. The Mississippi Development Authority coordinated local tax breaks and site preparation. Mississippi Power invested in a substation under a special contract the Public Service Commission approved in February 2025. Mississippi Business Journal Clarion Ledger, January 19, 2025 Mississippi Public Service Commission news release, February 7, 2025 No dollar terms for the local piece have been published. The Center for Economic Accountability named this the worst economic development deal of 2025. It reads the fee in lieu statute as allowing as much as a 66 percent property tax break over thirty years. Center for Economic Accountability, December 29, 2025 As of the county's own statement on July 15, 2026 the only public accounting is that the campus will mean better roads and more school resources. WTOK, July 15, 2026 | A roughly 10 billion dollar campus announced January 9, 2025 that broke ground the same year. It may draw up to 500 megawatts at full build. Governor Reeves, January 9, 2025 A Lauderdale County supervisor said in November 2025 he still had no firm fiscal projections. Center for Economic Accountability, December 29, 2025 The county's July 2026 statement adds that construction will employ more than 1,000 Mississippi workers and leave hundreds of permanent positions. WTOK, July 15, 2026 | Live. The local package was already in place when the state announced the project on January 9, 2025. No end date for the county and city assistance has been published. Mississippi Development Authority, January 9, 2025 |
| Corderill tenant certification for the state Data Center Incentive | On April 22, 2026 the Mississippi Development Authority approved Corderill LLC for the state Data Center Incentive. That incentive carries the sales and use tax exemptions. Corderill is a tenant on the Compass campus rather than the campus owner. So this is the clearest public sign that a colocation tenant can be certified. AVAIO tells prospective tenants the same thing about its Brandon campus. It advertises that state sales and use tax incentives are agreed and in place for campus tenants. Mississippi Development Authority AVAIO Digital, Brandon campus | A corporate investment of at least 100 million dollars in AI data center equipment and at least 20 direct jobs. That clears the 20 million dollar and 20 job statutory floor several times over. Meridian Star, April 25, 2026 SuperTalk Mississippi, April 22, 2026 Miss. Code Ann. § 57-113-21(a) The statute still describes a business enterprise "owning or operating" a data center. The 2025 bills that would have written tenants and affiliates into the text failed. So the tenant route rests on agency practice rather than on statutory language. Miss. Code Ann. § 57-113-21(a) SB 3168 as introduced | Approved by the Mississippi Development Authority and announced on April 22, 2026, and in effect now. WTOK, April 22, 2026 |
Madison County
Home to the two Amazon Web Services hyperscale campuses near Canton and Ridgeland, run on two fee in lieu agreements and a 215.1 million dollar state financed infrastructure loan. Five buildings hit the tax rolls in 2026 and the county expects its first fee payments in 2027. WLBT, July 6, 2026 Madison County Journal, July 8, 2026
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Amazon Web Services fee in lieu of property taxes | The county supports the project through fee in lieu agreements covering the megasite outside Canton and the Ridgeland site. Mississippi law caps any one parcel or item at ten years, inside an agreement that may run up to thirty years. Miss. Code Ann. § 27-31-104(4) The reporting describes a two thirds abatement, with later additions picking up their own ten year run. The remaining one third flows to the county collector. It is split pro rata among the county, the cities, the school districts, the fire district, and the other taxing bodies. Madison County Board of Supervisors, July 6, 2026 Assessor projections given to the board put roughly 14.2 million dollars reaching the community in 2027 after debt service, including about 7.9 million dollars for Canton schools. By 2033, once the loan is gone, the projection rises to roughly 145.2 million dollars a year. That later figure breaks down as 1) about 38.3 million for Canton schools, 2) 38.6 million for Madison County schools, 3) 51 million for the county, 4) 14.2 million for Ridgeland, and 5) 3.1 million for Hinds Community College. | Tied to the 10 billion dollar two campus project on more than 1,700 acres. About 1,000 jobs are expected by 2034 at average salaries near 66,000 dollars. WLBT, February 3, 2024 WAPT, Mississippi lawmakers approve the 10 billion dollar Amazon Web Services project Under the statute no single item of property can sit under the fee in lieu for more than ten years. The agreements themselves run thirty. Miss. Code Ann. § 27-31-104(4) | In effect. The fee in lieu is already running. By July 6, 2026 Madison County's total assessed value had risen about 1.2 billion dollars to roughly 3.5 billion dollars. The AI data centers and the annual state mandated reassessment together drove that rise. WLBT, July 6, 2026 |
| State infrastructure loan to Madison County | The Legislature let Madison County borrow 215.1 million dollars from the state to build site infrastructure for the Amazon Web Services campuses, repaid from project revenue. WLBT, February 3, 2024 On July 6, 2026 the board voted to steer at least half of every fee in lieu dollar into prepaying that loan. Officials think that could clear it by 2032 instead of running the full thirteen years. Madison County Board of Supervisors, July 6, 2026 | Part of the January 2024 special session package for the Amazon Web Services project. 2024 Miss. Laws, 2nd Ex. Sess., SB 2001 Tate Record Amazon has separately put more than 30 million dollars into public improvements in the county over the last year and a half, outside what the loan funded. WLBT, July 6, 2026 | Live and in repayment. Madison County was still carrying the 215 million dollar balance as of July 6, 2026. WLBT, July 6, 2026 |
Rankin County
The 6 billion dollar AVAIO Digital Taurus campus in Brandon is certified for the state data center exemption. It is also eligible for a county fee in lieu. Projections show roughly 23 million dollars a year in new ad valorem revenue once the campus is fully on the tax rolls. Governor Reeves, August 19, 2025 Columbian Progress, September 4, 2025
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| AVAIO Digital Taurus project assistance and site development grant | The Mississippi Development Authority approved the campus for the state data center tax exemptions. It had earlier funded a Site Development Grant that readied the East Metropolitan Center Business and Industrial Park. Rankin County and the city of Brandon are assisting. AVAIO is eligible for a fee in lieu of property tax that needs the county board's sign off. Mississippi Development Authority Columbian Progress, September 4, 2025 Miss. Code Ann. §§ 57-113-21 through 57-113-27 Rankin First, the county economic development group, estimates about 23 million dollars a year in new ad valorem revenue once the property is fully on the rolls and running. Most of it would go to the local school district. Columbian Progress, September 4, 2025 | A 6 billion dollar campus announced August 19, 2025 with at least 60 direct high tech jobs. Governor Reeves, August 19, 2025 AVAIO has broken ground on the 329 acre site. It targets first occupancy in August 2027. It has an energy services agreement with Entergy Mississippi for an initial 116 megawatts of grid power, energized in June 2027, with a path to more than one gigawatt. AVAIO Digital, Brandon campus | Live, with one piece still open. The state data center exemption approval and the Site Development Grant were both in hand at the August 19, 2025 announcement. Magnolia Tribune, August 19, 2025 I could not verify a fee in lieu approval date from a primary source. |
Warren County
Amazon announced a 3 billion dollar AI data center campus in Vicksburg on November 20, 2025, the largest private investment in county history, and the Warren County Board of Supervisors signed a fee in lieu agreement for it. Governor Reeves, November 20, 2025 Vicksburg Daily News, April 8, 2026
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| State incentives for the Vicksburg campus | The state pieces are the ordinary ones. They are long term corporate income tax exemptions and sales tax rebates on construction, flowing from the 2024 economic development law and the state data center program. Mississippi Public Broadcasting, November 20, 2025 Miss. Code Ann. §§ 57-113-21 through 57-113-27 Locally the county signed a fee in lieu agreement under Section 27-31-104. Board president Kelle Barfield said publicly that it binds Amazon to a minimum of 2.5 billion dollars invested over a five to six year construction period and at least 100 direct jobs once operational. She added that there was nothing exceptional in it compared with any other project over 60 million dollars. Vicksburg Daily News, April 8, 2026 Vicksburg Post, April 9, 2026 Amazon separately committed 150,000 dollars to a Warren County educational grant and community fund. That is a company contribution and not a tax break. Amazon | The public announcement was at least 3 billion dollars and at least 200 direct jobs plus 300 indirect. Construction is slated to begin in 2026. But the enforceable floor in the fee in lieu agreement is the lower pair of numbers, 2.5 billion dollars and 100 direct jobs. Vicksburg Warren Partnership, November 20, 2025 Vicksburg Post, April 9, 2026 | Live. Warren County supervisors were still approving Amazon Web Services project agreements in July 2026, including a 20 million dollar Mississippi Development Authority infrastructure loan. The local development partnership's chief executive told the board the AI data center project is going on schedule. Vicksburg Post, county moves forward with data center project agreements |
Missouri exempts qualifying data centers from all state and local sales and use tax for up to 15 years under Mo. Rev. Stat. § 144.810, and cities and counties layer property tax abatements on top of that through Chapter 100 industrial development bonds. Missouri Department of Economic Development Nothing changed at the state level in the 2026 session, so the real fight over AI data centers here is local. Missouri Independent Montgomery, Clay, Jackson, and Jefferson counties each approved a large abatement package in the past year, and voters in Independence and Festus then removed the council members who voted for them. KCUR Politico
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Data Center Sales Tax Exemption Program | The program gives a 100 percent exemption from state and local sales and use tax on construction materials, machinery, equipment, computers, and utilities for a new AI data center, for up to 15 years from conditional approval. An expanding facility gets up to 10 years. Mo. Rev. Stat. § 144.810 Missouri Partnership program summary The total exemption is capped at the projected net fiscal benefit to the state over 10 years. The Department of Economic Development models that benefit using the Regional Economic Modeling, Inc. data set. Tax already paid since the first day of construction is refunded once the project is certified. The Department of Revenue has 30 days to issue that refund. A new facility that files a notice of intent to expand within 5 years of becoming operational can ask for a fresh net fiscal benefit analysis and a further exemption of up to 15 years. Mo. Rev. Stat. § 144.810.7 | A new facility needs at least 25 million dollars of investment within 36 months. It also needs at least 10 new jobs within 36 months paying at least 150 percent of the county average wage. An expanding facility needs at least 5 million dollars of new investment within 12 months. It also needs at least 5 new jobs within 24 months at the same wage standard. Missouri Department of Economic Development Missouri Partnership program summary If the county average wage is above the statewide average, the statewide average is used instead. The operator has to be primarily engaged in NAICS 518210 data processing and hosting or NAICS 519130 internet publishing and web search portals. Where more than one taxpayer is responsible for a project, the constructing and operating taxpayers can combine to meet the investment test. This is what lets a colocation operator and its tenants qualify together. The Department of Economic Development has 30 days to rule on a project plan or the plan is deemed conditionally approved. Project taxpayers sign a repayment penalty agreement. The two departments run random audits. A recipient is barred from business recruitment tax credits. There is no sunset date in the statute. Mo. Rev. Stat. § 144.810 | Active. The section took its current form effective August 28, 2018. It came through the 2026 regular session unchanged. Governor Kehoe declined to call a special session on AI data centers in June 2026. Mo. Rev. Stat. § 144.810 Fox 2 Now Missouri Independent |
| Utility sales tax exemption inside the data center program | The same Section 144.810 exemption covers all electrical energy, gas, water, telecommunications, and internet service used in a qualifying new AI data center for up to 15 years. Mo. Rev. Stat. § 144.810.2(1) For an expanding facility the exemption reaches only the utility usage above the pre expansion baseline. That baseline is measured in kilowatt hours, gallons, cubic feet, or other physical units rather than in dollars, so a rate increase does not eat the benefit. That version runs up to 10 years. Mo. Rev. Stat. § 144.810.4(1) | The thresholds are the same ones the Data Center Sales Tax Exemption Program uses. The expanding facility version also needs approval from the Department of Economic Development. Missouri Department of Economic Development Missouri Partnership program summary I found no separate standalone electricity tax exemption for AI data centers outside Section 144.810. Mo. Rev. Stat. § 144.810 | Active, and unchanged by the 2026 session. Mo. Rev. Stat. § 144.810 Missouri Independent |
| Chapter 100 industrial development bonds | A city or county issues revenue bonds, takes title to the project, and leases it back to the company. That power comes from the industrial development bond sections of the Missouri statutes. Mo. Rev. Stat. §§ 100.010 to 100.200 Because the municipality holds title, the deal can abate real and personal property tax for the lease term. It can also extend the municipal sales tax exemption to construction materials and bond financed equipment. Missouri Partnership Chapter 100 summary Missouri Department of Economic Development This is the main local property tax tool that Missouri AI data center deals use. Missouri taxes business personal property, so abating tax on servers is worth far more here than abating tax on the building. That is exactly how the Montgomery County, Liberty, and Independence deals are built. Warren County Record KCUR | Every deal is negotiated with the local governing body. That body sets the abatement percentage, the term, and any payment in lieu of taxes. City of Liberty Missouri Partnership Chapter 100 summary Overlapping taxing districts such as ambulance and fire protection districts generally have a right to opt out and keep collecting in full. In Montgomery County both of them are expected to do so. Warren County Record The state is not a party to the bond and lease deal. The Department of Economic Development still has to certify the project for the sales tax exemption on the leased personal property. Missouri Partnership Chapter 100 summary Missouri Department of Economic Development | Active and heavily used. The Montgomery County, Liberty, and Independence AI data center deals approved in the past year all run through Chapter 100. Missouri Department of Economic Development KCUR |
| Senate Bill 4 large load tariffs and ratepayer protection | This one is a guardrail rather than an incentive. Governor Kehoe signed S.B. 4 on April 9, 2025. It requires electric utilities to file rate schedules for large load customers such as AI data centers. Those schedules must make large load customers carry a representative share of the cost of serving them. They must also ensure other customer classes are not charged unjust or unreasonable costs. Polsinelli Missouri Independent A utility with more than 250,000 customers has to file schedules for customers reasonably projected to exceed 100 megawatts of annual peak demand. A utility with fewer than 250,000 customers files at 50 megawatts. Mo. Rev. Stat. § 393.130(7) The Public Service Commission approved Evergy large load tariffs in November 2025. It approved the Ameren Missouri Powering Missouri Growth Plan on November 24, 2025. The Ameren plan reaches customers forecasting 75 megawatts or more of monthly peak demand. It also requires contracts of at least 12 years. Missouri Public Service Commission Ameren Missouri St. Louis Public Radio S.B. 4 separately let utilities recover construction work in progress for new gas generation and use future test years. Critics say that raises rates for everyone. The construction work in progress provision sunsets in 2035 unless the commission extends it. Polsinelli St. Louis Public Radio on Senate Bill 4 | Large load customers sign long term contracts under the approved tariffs. They also have to meet creditworthiness and liquidity requirements. Missouri Public Service Commission Google says it will fund all the power it consumes and any new infrastructure its Montgomery County project requires. Warren County Record Missouri Governor Amazon has said the same for its Montgomery County project. It is taking no discount on electric rates. First Alert 4 Festus negotiated the same commitment from its developer. St. Louis Public Radio | Enacted 2025 and in force. Ameren Missouri and Evergy both have approved large load tariffs. The Liberty Utilities large load tariff case was still listed as in progress on the commission page I read on August 2, 2026. Missouri Public Service Commission |
| Income tax credit bar for data center projects | Missouri has no AI data center specific income or franchise tax credit. The general Missouri Works jobs program exists. But Section 144.810.9 bars any recipient of the data center sales tax exemption from benefits under any business recruitment tax credit as that term is defined in Section 135.800. Mo. Rev. Stat. § 144.810.9 Missouri Works counts as a business recruitment tax credit under that definition. Mo. Rev. Stat. § 620.2020 In practice a project takes the sales tax exemption and skips the jobs credits. | The bar applies automatically to every project that takes the Section 144.810 exemption. Mo. Rev. Stat. § 144.810.9 | Active, and unchanged by the 2026 session. Mo. Rev. Stat. § 144.810 Missouri Independent |
| Shovel ready industrial site grants | In 2023 Missouri lawmakers appropriated 27.5 million dollars in federal pandemic recovery money for industrial site development. The Department of Economic Development awarded Montgomery County a 5 million dollar grant to prepare a rural megasite along Interstate 70. That megasite became the location of the Amazon and Google AI data center campuses. Missouri Independent The grant is the reason the department is a defendant in the Preserve Montgomery County suit. The plaintiffs say the county breached its grant agreement by violating the Sunshine Law. KRCG Preserve Montgomery County petition | This was a one time appropriation awarded through the Department of Economic Development rather than an ongoing program. I found no open application window. Missouri Independent | Awarded in 2023. I found no later round. Missouri Independent |
County and local programs
Clay County
This is the Kansas City Northland AI data center hub, with three campuses. Port KC bonds back the Google project called Project Mica, the Meta campus at Golden Plains Technology Park is already running, and the city of Liberty approved a 25 year package for Metrobloks in March 2026. Port KC KCTV5 Meta KCUR
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Port KC bonds for Google Project Mica | The Port Authority of Kansas City authorized up to 10 billion dollars in taxable revenue bonds for Project Mica. Project Mica is a campus of five hyperscale AI data center buildings totaling 1.56 million square feet. It sits on nearly 500 acres at the northeast corner of Interstate 435 and Highway 169. The Port KC project page describes a 25 year, 75 percent exemption on property taxes. It also describes 100 percent exemptions on local and state sales taxes for construction materials and equipment. The full build draws nearly 700 megawatts supplied by the adjacent Nashua Power Station and onsite substations. The project commits 1.5 million dollars to the Smithville School District workforce development program. It commits another 250,000 dollars to the Northland Career Center. Both are paid upfront regardless of the construction timeline. Port KC | The Port KC development committee voted in April 2025 to recommend the bonds. The bond lease structure puts title with Port KC during the abatement term. Ingram's Port KC That bond and lease mechanism runs under the port authority law at Mo. Rev. Stat. § 68.025 rather than the municipal industrial development bond law at Mo. Rev. Stat. §§ 100.010 to 100.200 The Port KC page does not name the tenant. But reporting by the Kansas City Star, Ingram's, and the Kansas City Business Journal identifies it as Google. Kansas City Star Kansas City Business Journal | Live. The bonds were authorized in July 2025. KSHB Google publicly confirmed on February 12, 2026 that Project Mica is its campus and that construction is underway at the site. KCTV5 |
| Meta campus at Golden Plains Technology Park | Meta built an AI data center at Golden Plains Technology Park near Interstate 435 and Highway 169 in the Kansas City Northland. It is the first hyperscale campus in the Kansas City market. Diode Ventures Under the incentive framework Kansas City approved for the park, data centers there are eligible for a 25 year, 75 percent abatement on real property tax. They are also eligible for a 100 percent abatement on personal property tax. That is the part that covers servers and hardware. KCUR The Construction Broadsheet The campus went online on August 20, 2025. Meta describes it as a project of more than 1 billion dollars supporting more than 100 operational jobs. An average of about 1,500 trade workers were on site at peak construction. Meta | The deal was negotiated with the City of Kansas City. Diode Ventures rezoned the site. The city council approved the development plan and industrial revenue bonds in April 2021. KCUR Diode Ventures The industrial development bond law behind that structure is Mo. Rev. Stat. §§ 100.010 to 100.200 The park straddles the Clay and Platte county line. Reported park acreage ranges from more than 760 acres to 882 acres. But the Meta buildings carry Kansas City addresses on NW 128th Street on the Clay County side. Meta community grants have gone to Clay County, Platte County, and Kansas City schools and nonprofits. Data Center Dynamics Meta When the project was announced in March 2022 the governor office said Meta planned to use the state Data Center Sales Tax Exemption Program. That is the only public statement I found tying any of these Missouri campuses to the state exemption. Platte County Citizen | Live. Meta says the Kansas City campus is operational and serving traffic. Meta newsroom The 25 year abatement is still running. I found no published start or end date for the abatement term itself. |
| City of Liberty Chapter 100 package for Metrobloks | The Liberty City Council approved a bond and 25 year tax incentive package in March 2026 for a 1.4 billion dollar Metrobloks campus. The campus has three buildings totaling 568,800 square feet on Old Hughes Road. KCUR The abatement is 75 percent on real property tax for 25 years. On personal property tax it is 100 percent for the first five years and then 90 percent for the next 20. KMBC Reporting puts the total value at about 202.7 million dollars. A Kansas City Star headline used 229 million dollars. That figure appears to reflect a different accounting of the same package. Ingram's Kansas City Star Metrobloks agreed to contribute 28 million dollars over 25 years to the nonprofit Liberty Institute for Science and Ethics. The project is expected to create about 30 permanent jobs at an average salary near 95,000 dollars. KCUR | The standing Liberty Chapter 100 program allows up to 90 percent abatement for a qualifying company. City of Liberty Chapter 100 is the industrial development bond law at Mo. Rev. Stat. §§ 100.010 to 100.200 The Metrobloks package was announced jointly by the city, the Missouri Department of Economic Development, and the company. The mayor says tenant investment could take the total in the city to 4 billion to 6 billion dollars. KMBC | Approved and in effect. The Planning and Zoning Commission took the project up on December 9, 2025. The City Council approved it on December 15, 2025. City of Liberty Metrobloks FAQ The city announced the finished Metrobloks deal on March 24, 2026. City of Liberty news release |
Jackson County
Independence approved one of the largest local AI data center abatements in Missouri for Nebius in March 2026, over heavy resident opposition. A judge refused to let the deal go to a referendum, and two councilmembers who voted for it were voted out in April. KCUR Good Jobs First KCTV5 KCUR
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| City of Independence Chapter 100 abatement for Nebius | The Independence City Council voted 5 to 2 on March 2, 2026 to approve a Chapter 100 ordinance granting a 90 percent tax abatement to Nebius. Nebius is a Netherlands based company that builds large scale cloud computing infrastructure it calls AI factories. KCUR The campus covers nearly 400 acres on the eastern edge of the city. Nebius plans to make it its flagship United States facility. The headline numbers that look inconsistent are actually measuring different things. The financing plan abates 98 percent of real property tax and 90 percent of personal property tax including equipment. The campus investment runs up to 150.6 billion dollars over 20 years. The abated property tax is about 6.26 billion dollars over that period, against roughly 6.9 billion dollars that would otherwise be owed. The sales tax exemptions are worth more than 330 million dollars. Nebius instead makes payments in lieu of taxes of roughly 651.5 million dollars. Good Jobs First The Beacon The Independence School District expects about 463.4 million dollars over 20 years. It endorsed the project. The Beacon | The package was negotiated with the City of Independence under Chapter 100. Good Jobs First urged the city to pause and renegotiate because abatement levels of 98 percent and 90 percent sit at the extreme high end of local practice. Good Jobs First Chapter 100 is the industrial development bond law at Mo. Rev. Stat. §§ 100.010 to 100.200 Opponents gathered signatures for a referendum. The city clerk refused to certify the petition on the ground that the city charter does not allow a referendum on that ordinance. Three residents sued on March 9, 2026 in Jackson County. KSHB Judge Jennifer M. Phillips denied the petition for a writ of mandamus, declaratory judgment, and injunctive relief on March 25, 2026. She ruled that the tax breaks do not legally qualify to be overturned by referendum. KCTV5 Fox 4 Two of the five councilmembers who voted for the package lost their seats in the April 2026 election. KCUR | In effect. The judge held that the bond ordinance went into effect immediately and is not subject to a referendum under the city charter. So the abatement stands. KSHB Nebius broke ground on May 12, 2026. It expects the first phase to be operational in the second quarter of 2027. KCTV5 |
Jefferson County
Festus approved a 6 billion dollar CRG AI data center in March 2026 under a development agreement that deliberately gives no real property tax abatement, only a partial personal property abatement through the county port authority. St. Louis Public Radio Leader Publications Voters then ousted all four incumbent council members who were up for reelection. Politico
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| City of Festus development agreement with CRG | The Festus City Council approved an infrastructure development agreement for a 6 billion dollar AI data center on March 30, 2026 by a vote of 6 to 2. It had rezoned the site on November 24, 2025. St. Louis Public Radio The Leader The Leader project timeline The city negotiated a commitment from the developer not to request any real property tax abatement. There is no cap or abatement on the city utility taxes. In exchange the city agreed to support the developer application to the Jefferson County Port Authority for a partial personal property tax abatement. Festus receives direct community benefit payments totaling 45 million dollars over 10 years, starting at 3 million dollars in the first year. It also gets up to 5 million dollars for a new firehouse. The city projects about 1.3 billion dollars in property taxes, utility taxes, and community benefit payments over 25 years. Leader Publications Spectrum News | The developer is CRG Acquisition LLC, the St. Louis based data center development arm of Clayco. The site sits north of Highway 67 and west of Highway CC. No operator has been named. The Leader The developer pays for all water and sewer improvements and mains the project requires. It also enters a binding agreement with Ameren making it responsible for all its energy usage and for expanded energy structure. It administers a voluntary buyout program for the closest homes. Leader Publications Voters rejected four incumbent council members who supported the project in the April 2026 election. Politico Missouri Independent On April 8, 2026 the opposition group Wake Up Jeffco and four neighboring property owners filed a 54 page, 12 count suit in St. Louis County Circuit Court against the city and CRG. The suit alleges violations of city code and the Sunshine Law. It asks the court to invalidate both the March 30, 2026 development agreement and the November 24, 2025 rezoning. It also asks the court to fine the city 5,000 dollars for each violation. The case is assigned to Judge Ellen W. Dunne. No hearing or trial had been scheduled as of the reporting I read. The Leader First Alert 4 The Leader on the lawsuit counts | In effect and not stayed. The mayor and the building director said on June 12, 2026 that no construction plans or permit requests had been submitted to the city. The Leader Judge Dunne denied the plaintiffs motion for default judgment on July 17, 2026. She set a case management conference for September 18, 2026. So the challenge to the agreement is still open. The Leader |
Montgomery County
Amazon and Google are building AI data centers on nearly 2,000 acres near New Florence. St. Louis Public Radio Missouri Independent The county approved a framework for Amazon in December 2025 and finalized a 70 percent personal property tax abatement for Google on June 8, 2026. KBIA Warren County Record Both companies pay full real property tax.
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Amazon Web Services Chapter 100 framework | County commissioners voted unanimously on December 18, 2025 to approve a Chapter 100 bond tax incentive framework for an Amazon Data Services campus. The campus would have at least 4 and up to 17 buildings near Interstate 70. KBIA KRCG Chapter 100 is the industrial development bond law at Mo. Rev. Stat. §§ 100.010 to 100.200 The county intends to issue taxable industrial revenue bonds in an amount not to exceed 35 billion dollars. The value of the incentives was reported at up to 1 billion dollars. Amazon pays 100 percent of its real property tax with no abatement. The county projects that at 326 million dollars to 1.5 billion dollars. The county cost benefit analysis shows personal property tax exemptions between 75 percent and 95 percent from 2028 to 2052. Those exemptions are worth 244 million dollars to 982 million dollars depending on how many buildings get built. The analysis projects total tax revenue between 400 million dollars and 1.8 billion dollars. Warren County Record Missouri Independent Minimum capital investment is projected at 8.5 billion dollars. Amazon projects at least 150 jobs at an average salary potential of 85,000 dollars. In June 2026 Amazon promised about 7 million dollars in community contributions. It said it is taking no incentives or discounts on electric rates. KFVS First Alert 4 | The December 2025 vote approved the framework and the cost benefit analysis only. It did not authorize construction. KBIA Preserve Montgomery County LLC sued the county and the Department of Economic Development in Cole County Circuit Court on February 16, 2026 as case 26AC-CC00072. Its 35 page petition alleges that the commission 1) posted inaccessible meeting notices and insufficient agendas, 2) failed to give proper public notice of data center business, 3) held unlawful closed sessions, and 4) did not give enough advance notice. The petition asks a judge to invalidate the plan, the bond order, and the development agreement. Preserve Montgomery County petition KOMU I found no reported ruling as of August 2, 2026. KRCG | In effect. The framework has stood since the December 2025 vote. Governor Kehoe and Amazon confirmed the 10 billion dollar campus on June 15, 2026. Missouri Governor The Columbia Missourian reported on June 14, 2026 that the site north of Interstate 70 is under construction. Columbia Missourian |
| Google Chapter 100 abatement at 656 Tree Farm Road | Google announced a 15 billion dollar AI data center on May 20, 2026 near New Florence. The county commission voted unanimously on June 8, 2026 to approve the abatement agreement. St. Louis Public Radio KOMU Missouri Governor The deal abates 70 percent of the personal property tax. The remaining 30 percent is paid as a payment in lieu of taxes. This runs from 2028 to 2052 for a 25 year term. Google pays 100 percent of the real property tax. The county intends to issue taxable industrial revenue bonds in an amount not to exceed 100 billion dollars. In exchange Google makes an annual payment of 5 million dollars for each completed building. Two buildings are anticipated. Each 5 million dollar payment is allocated 80 percent to the Greater Montgomery County Port Authority. It gives 5 percent each to New Florence, High Hill, the Wellsville-Middletown R-I school district, and the Gasconade County R-I school district. Google estimates total equipment acquisition of 56 billion to 87.5 billion dollars. Assessed personal property valuation is projected above 4.6 billion dollars by anticipated completion in 2029. Warren County Record | The contracting party is Kinetic Site Ventures LLC, a subsidiary of Alphabet Inc. Google has to staff each building with at least 75 employees paid at 150 percent of the county average wage. Equipment transfers to the county for leaseback in 2027. So Google pays 100 percent of the personal property tax on anything it owns at the site on January 1, 2027. The county estimates that at about 7.4 million dollars. The Montgomery County Ambulance District and the New Florence Fire Protection District have the right to opt out of the abatement. Both are expected to take it. Google has said it will fund the power it consumes and the new infrastructure it requires. It contracted with Ameren for more than one gigawatt of new generation. Warren County Record Missouri Independent Missouri Governor The leaseback runs under the industrial development bond law at Mo. Rev. Stat. §§ 100.010 to 100.200 | In effect. The abatement agreement is approved. The campus, called Project Spade in the planning documents, is already under construction south of Interstate 70 near New Florence. KBIA |
Montana has no sales tax of any kind, and it taxes a qualified data center at 0.9 percent of market value under a property class built for that purpose, the lowest rate in the whole property tax code. Mont. Code Ann. § 15-6-162 The state break was widened in May 2025 and has not moved since. MT HB 424 (2025) That is why the real action in 2026 sits somewhere other than the statehouse. It is in a pending utility rate case at the Public Service Commission Daily Montanan and in county moratoriums and citizen ballot petitions aimed at AI data centers. Daily Montanan Montana Free Press
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Class 17 qualified data center property classification | The land, improvements, furniture, fixtures, equipment, tools, and supplies of a qualified data center are taxed at 0.9 percent of market value. Mont. Code Ann. § 15-6-162 Montana Department of Revenue Compare that with the class 8 business equipment rates of 1.5 percent and 3 percent that servers would otherwise carry. Mont. Code Ann. § 15-6-138 The class reaches 1) cooling systems and cooling towers, 2) power infrastructure including business owned exterior substations and backup generation and battery systems, and 3) any other equipment needed to run the facility. Dedicated communications infrastructure owned or leased by the owner of the AI data center gets the same 0.9 percent rate for 10 years from the time construction commences. It then moves to class 13. Onsite electrical generation and storage that begins operating after May 13, 2025 and sits on the facility side of the utility meter gets the 0.9 percent rate for 10 years. It then moves to class 13 as well. Mont. Code Ann. § 15-6-162 | The facility must be one or more buildings under single ownership on contiguous parcels. A wholly owned subsidiary or a parent holding a 100 percent ownership interest counts as that single owner. Mont. Code Ann. § 15-6-162 It then has to clear one of two floors. One floor is 300,000 square feet with total cost of land, improvements, personal property, and software of at least 150 million dollars and construction commencing after June 30, 2017. The other is 25,000 square feet of new or expanded area with at least 50 million dollars invested over a 48 month period and construction commencing after January 1, 2019. Mont. Code Ann. § 15-6-162 Montana Department of Revenue There is no job count and no wage floor. During construction the property can still be classified as class 17 if the taxpayer certifies to the Department of Revenue that the facility will meet the requirements within 2 years of that certification. The taxpayer must certify before March 1 of the first tax year the classification is applied. Onsite generation counts as primarily used onsite only if at least 80 percent of output is consumed onsite on an annualized kilowatt hour basis. That 80 percent must be certified every year, with utility grade metering at the point of generation. The test is waived for backup generation made available to the utility during a governor declared electrical generation emergency. Class 17 property sitting inside an urban renewal area or a targeted economic development district still pays the elementary, high school, and state equalization mills. Mont. Code Ann. § 15-6-162 | Active and unchanged as of July 2026. The expansion came through HB 424, signed as Chapter 678, Laws of 2025, effective May 13, 2025. MT HB 424 (2025) Mont. Code Ann. § 15-6-162 The class is not sitting empty either. The Department of Revenue property tax tables show class 17 property with a market value of 87,197,455 dollars in tax year 2023 and 62,338,214 dollars in tax year 2024. Those years carried 496,097 dollars and 342,916 dollars of tax. This means at least one Montana facility has been certified into the class. The department does not publish the names. Montana Department of Revenue Biennial Report 2022 to 2024, Property Taxes |
| No general sales or use tax | Montana levies no general sales or use tax. That means servers, GPUs, cooling plant, backup generators, network gear, and construction materials are all bought free of sales tax. Montana Department of Revenue GSA SmartPay There is no application, no minimum investment, no job count, and no sunset, because there is no tax to exempt in the first place. A colocation tenant is treated the same as an owner for the simple reason that nobody pays sales tax on equipment. | None. The treatment is automatic for every buyer in the state. Montana Department of Revenue | Active. Montana Department of Revenue |
| No retail sales tax on electricity, subject to the wholesale energy transaction tax upstream | Electricity bills carry no state or local retail sales tax, because Montana has no general sales tax at all. Montana Department of Revenue Montana has also not enacted any AI data center electricity consumption tax of the kind Virginia adopted in June 2026. One state tax does touch power. The wholesale energy transaction tax runs at 0.015 cent per kilowatt hour of electricity transmitted by a transmission services provider in the state. Mont. Code Ann. § 15-72-104 Montana Department of Revenue It is collected upstream from generators and distribution providers rather than billed to a retail customer as a line item. So an AI data center feels it only to the extent it is baked into rates. Montana Department of Revenue | None for the retail treatment. The wholesale energy transaction tax is remitted by transmission services providers, not by end users. Mont. Code Ann. § 15-72-104 Montana Department of Revenue | Active. Montana Department of Revenue |
| Job Growth Incentive Tax Credit | A credit against income tax equal to half of the employer share of FICA taxes paid on the Montana source wages of qualifying new employees during the tax year. Montana Department of Labor and Industry The credit lives in three code sections. One is for individual income tax, one for corporate income tax, and one for the Department of Labor and Industry side of the program. Mont. Code Ann. §§ 15-30-2361, 15-31-175, and 39-11-404 | The employer needs a credit certificate from the Department of Labor and Industry. It applies through the state ebiz portal. Montana Department of Labor and Industry It takes at least 10 qualifying new employees in a county with a population over 20,000, or at least 5 in a county under 20,000. Those are the first time numbers. In later years the employer has to carry at least 15 qualifying new employees in the larger counties and at least 7 in the smaller ones. Montana Department of Labor and Industry Each qualifying hire has to earn a minimum yearly wage that rises with inflation and is recalculated every October. The department's published table runs 50,000 dollars for a 2022 hire, 54,530 dollars for 2023, 56,150 dollars for 2024, and 57,820 dollars for 2025. As of July 2026 it still stops at that 2025 figure, with no 2026 number posted. Montana Department of Labor and Industry The hires must serve a qualifying Montana based project in the construction, natural resources, mining, agriculture, forestry, manufacturing, transportation, utilities, or outdoor recreation sectors. Montana Department of Labor and Industry Operating an AI data center is not on that list, so an operating facility is a poor fit. But a construction phase employer working on the project may well qualify. HB 908 of 2025 also pulled certain construction apprentices inside the definition of a qualifying new employee. MT HB 908 (2025) Bloomberg Tax Applications are taken year round for the prior calendar year. But the employer has to apply by January 31 of the year after the tax year to have the credit in hand by the regular filing date. Montana Department of Labor and Industry | Active. The tax year 2028 sunset was removed by HB 908, enacted May 13, 2025. MT HB 908 (2025) Chapter 751, Laws of 2025 Bloomberg Tax |
| New or Expanding Industry property tax abatement | For the first 5 years after construction commences, qualifying improvements or modernized processes are taxed at either 25 percent or 50 percent of their taxable value, whichever the approving local resolution picks. Mont. Code Ann. § 15-24-1402 Each year after that the percentage steps up by equal amounts until full taxable value is reached in the 10th year. The property is taxed in full from then on. Mont. Code Ann. § 15-24-1402 Montana Department of Revenue The break reaches only the local high school district and elementary school district mills plus the mills the approving governing body levies at its own discretion. It does not reach levies required under Title 15, chapter 10, or the state equalization levies. So a slice of the bill is never abated. Mont. Code Ann. § 15-24-1402 | An AI data center qualifies on the face of the statute. The definition of industry expressly includes a firm that operates a qualified data center or dedicated communications infrastructure classified under 15-6-162. Mont. Code Ann. § 15-24-1401 A new firm must invest at least 125,000 dollars of qualifying improvements in the jurisdiction and an expanding firm at least 50,000 dollars. Mont. Code Ann. § 15-24-1401 The county, city, or town governing body must approve the abatement by separate resolution for each project after due notice and a public hearing. It cannot approve until all of the applicant's taxes are paid in full. Mont. Code Ann. § 15-24-1402 The safer path is to apply with a project plan before construction commences. That locks the abatement to the scope of that plan. A taxpayer who does not apply first has to apply by March 1 of the year the benefit first applies. The governing body must publish notice within 60 days of a complete application. It must approve or deny within 120 days. A taxpayer can seek a writ of mandamus from district court if it blows that deadline. Once approved, the benefit cannot be taken away. Mont. Code Ann. § 15-24-1402 Abated taxes are subject to termination or recapture with interest and penalties if ownership or use stops meeting the requirements. Recapture is not allowed for an involuntary conversion. It can be canceled if the local body finds the failure was outside the taxpayer's control. Mont. Code Ann. § 15-24-1402 | Active. Montana Department of Revenue |
| Class 8 business equipment exemption | The first 1 million dollars of market value of class 8 business equipment of a person or business entity is exempt from property tax. Above the exemption, equipment is taxed at 1.5 percent on the first 6 million dollars of taxable market value and 3 percent on everything past that. Mont. Code Ann. § 15-6-138 | It applies automatically to class 8 business equipment. It is the default landing spot for an AI data center too small to clear the class 17 size and investment floors. Mont. Code Ann. § 15-6-138 SB 322 of 2025 would have raised the exemption from 1 million dollars to 3 million dollars. It was a Gianforte priority bill. But it failed on May 23, 2025, so the 1 million dollar figure stands. MT SB 322 (2025), Montana Free Press Capitol Tracker Daily Montanan | Active. Mont. Code Ann. § 15-6-138 |
County and local programs
Missoula County
Missoula County is the one Montana county that moved first on regulation instead of incentives. Montana Free Press On July 9, 2026 the commissioners adopted interim zoning creating a one year moratorium on new or expanded AI data centers in the unincorporated county. Daily Montanan Montana Free Press I could not find an AI data center incentive offered by Missoula County. Daily Montanan
Silver Bow County
Butte hosts the Atlas Power AI data center, one of the largest operating in Montana. NorthWestern Energy The county separately owns the Montana Connections park and its tax increment district. Butte-Silver Bow The much larger Sabey campus that had been planned for the same park collapsed in May 2026, and Sabey has not announced a replacement Montana site. Data Center Dynamics Residents are now gathering signatures on a citizen initiative that would send any new AI data center to a county wide vote. Montana Free Press I could not confirm whether Atlas Power holds a local property tax abatement, because Butte-Silver Bow posts its abatement resolutions one document at a time rather than in a searchable list and none of the published resolutions I read names the company. Butte-Silver Bow
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Montana Connections targeted economic development district tax increment financing | The county owned Montana Connections business park west of Butte, where Interstate 15 meets Interstate 90, is a targeted economic development district with a tax increment financing provision. Butte-Silver Bow District increment has paid for roads, sewer, water, industrial water, natural gas, electric power, and fiber across the park. Butte-Silver Bow still markets land for sale inside it, along with local loan funds for developers. Butte-Silver Bow Atlas Power runs a data center in Butte at the former Mike Mansfield Advanced Technology Center. That site sits outside the park. NorthWestern Energy agreed in December 2024 to serve it with 75 megawatts beginning in 2026. A further 75 megawatts is expected over the following three to five years. NorthWestern Energy Data Center Dynamics | Locate inside the district and negotiate land and infrastructure terms with the Butte-Silver Bow government. Butte-Silver Bow Watch one wrinkle. Class 17 property inside a targeted economic development district still pays the elementary, high school, and state equalization mills. So the tax increment never captures those levies. Mont. Code Ann. § 15-6-162 Mont. Code Ann. § 7-15-4286 | Active. Butte-Silver Bow created the district by Ordinance 2023-10. That ordinance adopted the district comprehensive plan with a tax increment financing provision. It fixed the base taxable value as of January 1, 2023. Butte-Silver Bow Ordinance 2023-10 The Department of Revenue lists the district as created in 2023, with an expected expiration in 2038. It collected increment in tax year 2024 on 253,597 dollars of incremental taxable value. That produced 108,793 dollars of revenue. Montana Department of Revenue Biennial Report 2022 to 2024, Property Taxes A tax increment provision ends on the later of the 15th year after it is adopted or the day the bonds pledged to it are paid off. For a district created after June 30, 2022, the bonds cannot push it past the 30th year. Mont. Code Ann. § 7-15-4292 |
Yellowstone County
Quantica Infrastructure is assembling the Big Sky Digital Infrastructure campus on roughly 5,000 acres near Broadview, the largest AI data center proposal in the state. Montana Free Press The county separately runs the Lockwood tax increment district for industrial sites. Big Sky Economic Development Big Sky Economic Development On July 7, 2026 the commission voted to send the county attorney to district court over a citizen initiative that would require a two thirds voter vote before any new AI data center. Daily Montanan Montana Free Press As of August 2, 2026 I could not find either a signature count or a court ruling.
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Lockwood targeted economic development district tax increment financing | Yellowstone County set up the Lockwood targeted economic development district to create planned, ready to go industrial space. Big Sky Economic Development The district uses tax increment financing to pay for public infrastructure serving sites inside it. It drew a 4.6 million dollar federal Economic Development Administration grant in 2024 for water and sewer work. Big Sky Economic Development Big Sky Business Journal Mont. Code Ann. § 7-15-4286 I could not find any announced AI data center deal inside the district as of July 2026. Big Sky Economic Development | Industrial projects have to locate inside the Lockwood district and work with Yellowstone County and Big Sky Economic Development. Big Sky Economic Development The Quantica campus sits near Broadview, well outside Lockwood. I could not find any announced Yellowstone County tax incentive for that project. Montana Free Press | Active. The Department of Revenue lists the Lockwood district as created in 2016, with an expected expiration in 2031. It collected increment in tax year 2024 on 471,589 dollars of incremental taxable value. That produced 266,004 dollars of revenue. Montana Department of Revenue Biennial Report 2022 to 2024, Property Taxes Under state law a tax increment provision ends on the later of the 15th year after it is adopted or the day the bonds pledged to it are paid off. So the 2031 date moves only if bonds are still outstanding. Mont. Code Ann. § 7-15-4292 |
Nebraska has no tax break written just for AI data centers. Those projects use the general ImagiNE Nebraska Act instead, which pays a full refund of state and local sales and use tax, exempts data center equipment from local personal property tax for roughly ten years, and adds wage and investment credits. Neb. Rev. Stat. § 77-6831 ImagiNE Nebraska All of that is now in doubt. On July 17, 2026 Governor Jim Pillen said he would sign an executive order on Monday July 20, 2026 suspending state tax incentives for AI data center projects, so anyone reading this later should check whether it issued and in what form. Nebraska Public Media At least twelve counties have gone the other way and adopted local moratoriums on AI data center development. Nebraska Public Media county survey Nebraska Public Media on the twelfth county
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Governor's announced executive order suspending data center tax incentives | Not a benefit. It is a suspension. The Governor's office said the order will suspend the award of state tax incentives to large scale AI data centers. It will also create a task force to propose more safeguards for the state's natural resources against data center use. Nebraska Public Media Pillen said Nebraska already appeals to these companies because of its land, its low electrical rates, and its abundant water. He said the state had been handing them tax incentives on top of all that. 1011 Now | The announcement did not say whether the suspension reaches only future awards or also incentives already granted under signed ImagiNE agreements. It named no end date. North Platte Bulletin Nebraska Public Media The Governor has since signed the order. It ends access to ImagiNE Nebraska Act tax incentives for data centers. Office of the Governor Anyone counting on ImagiNE for a Nebraska AI data center should pull the order itself from governor.nebraska.gov before assuming the program is open. | Announced July 17, 2026 for signature on July 20, 2026. Nebraska Public Media The Governor has since signed it. The order ends access to ImagiNE Nebraska Act tax incentives for data centers. Office of the Governor Verify the signed order before relying on this entry. |
| ImagiNE Nebraska Act sales and use tax refund and exemption | A refund of 100 percent of the state and local sales and use tax paid on qualified property at the project location. The refund runs from the application date until the company hits its targets. A full exemption then applies for each later year it stays at the required investment and job levels. The state issues a direct payment permit so qualifying purchases can skip the tax up front. Contractor purchases built into the real estate count at 50 percent of the contract price. Neb. Rev. Stat. § 77-6831(1) to (3) ImagiNE Nebraska | Three application levels fit an AI data center. Quality Jobs Investment takes 5 million dollars of investment and 30 new full time equivalent employees. Modernization takes 50 million dollars of investment and no new jobs at all, so long as average pay is at least 150 percent of the state average hourly wage. For 2026 applications that wage is 44.07 dollars. Mega Project takes 250 million dollars of investment and 250 new employees at 150 percent of the state average wage. ImagiNE Nebraska application levels The company pays a fee of one half of one percent on most incentives. New employees have to clear wage and benefit tests. Neb. Rev. Stat. §§ 77-6801 to 77-6846 No new applications may be filed after December 31, 2030. Neb. Rev. Stat. § 77-6827(6) One thing I could not settle. The Act pays the taxpayer that makes the investment and hires the workers at the qualified location. Equipment counts whether bought or leased. But as of August 2, 2026 I found no state guidance splitting these benefits between a colocation landlord and a tenant on its own lease. Neb. Rev. Stat. § 77-6831 | Active in statute as of August 2, 2026. It is exposed to the executive order the Governor announced on July 17, 2026 for signature on July 20, 2026. Nebraska Public Media The Governor has since signed that order. It ends access to ImagiNE Nebraska Act tax incentives for data centers. Office of the Governor |
| ImagiNE Nebraska data center personal property tax exemption | Personal property that constitutes a data center is exempt from local personal property tax for roughly ten years. The exemption runs from the first January 1 after the company qualifies through the ninth December 31 after the first exempt year. At the Quality Jobs Investment and Modernization levels the exemption covers data center equipment and agricultural processing equipment only. At the Mega Project level of 250 million dollars and 250 jobs it covers all personal property of any kind. Operators under NAICS code 518210 can file back to back applications that roll newly installed equipment into fresh ten year exemptions. Neb. Rev. Stat. § 77-6831(8) | The company can qualify three ways. 1) Invest 5 million dollars and add 30 employees. 2) Invest 50 million dollars with average pay of at least 150 percent of the state average hourly wage. 3) Invest 250 million dollars and add 250 employees. ImagiNE Nebraska application levels The company files an annual exemption claim with the Tax Commissioner by May 1 for each county where it claims exempt property. Neb. Rev. Stat. § 77-6831(8) | Active in statute as of August 2, 2026. It is exposed to the executive order the Governor announced on July 17, 2026 for signature on July 20, 2026. Nebraska Public Media The Governor has since signed that order. It ends access to ImagiNE Nebraska Act tax incentives for data centers. Office of the Governor |
| ImagiNE Nebraska wage and investment tax credits | A 7 percent investment tax credit is available at the Quality Jobs Investment level of 5 million dollars and 30 employees. It also applies at the Mega Project level of 250 million dollars and 250 employees. The Modernization level of 50 million dollars with no new jobs carries no wage credit and no investment credit. It gets only the sales tax refund and the equipment property tax exemption. ImagiNE Nebraska application levels Wage credits on new employee payroll run 5, 7, or 9 percent as average pay reaches 100, 150, or 200 percent of the state average wage. At the Mega Project level they run 7 or 9 percent. Credits can also come back as refunds of sales and use tax paid on purchases at the project location that the direct refund did not reach. Neb. Rev. Stat. § 77-6831(4) and (5) Neb. Rev. Stat. § 77-6832(1)(c) | The same investment and hiring tests as the sales tax benefit. Pay above 1 million dollars per employee is left out of the math. Neb. Rev. Stat. § 77-6831 For 2026 applications the wage thresholds are 29.38 dollars at 100 percent of the state average wage, 44.07 dollars at 150 percent, and 58.76 dollars at 200 percent. ImagiNE Nebraska | Active in statute as of August 2, 2026. It is exposed to the executive order the Governor announced on July 17, 2026 for signature on July 20, 2026. Nebraska Public Media The Governor has since signed that order. It ends access to ImagiNE Nebraska Act tax incentives for data centers. Office of the Governor |
| LB 1165 ImagiNE credit increases | LB 1165 makes four changes. 1) It raises wage and investment credits by 1 percentage point at the Manufacturing Growth and Expansion Rural and Urban levels. 2) It raises the wage credit alone by 1 percentage point at the Quality Jobs level. 3) It adds a 1 percentage point bonus where the taxpayer employs at least 3,000 Nebraska based full time equivalent employees and hires 500 new ones within seven years of a change in ownership. 4) It drops the old 1 percentage point bonus for benefit corporations. ImagiNE Nebraska legislative changes LB 1165 | Applies to applications dated on or after April 17, 2026. ImagiNE Nebraska legislative changes The levels it raises are not the levels an AI data center normally uses. Quality Jobs is a 20 employee level with no investment requirement. That is a different thing from the Quality Jobs Investment level, which carries the data center property tax exemption. So LB 1165 does not raise the base credits an AI data center collects. It does swap the old benefit corporation bonus for a bonus tied to 3,000 Nebraska employees. ImagiNE Nebraska application levels | Operative April 17, 2026. ImagiNE Nebraska legislative changes |
| Data center sales and use tax exemption for out of state use, repealed | Before repeal it exempted tangible personal property and services a Nebraska data center operator bought and then assembled, processed, or built into other property for later use at a physical location outside the state. It was enacted in 2012 by LB 1080. Neb. Rev. Stat. § 77-2704.62 LB 1080, § 5 (2012) LB 901 is the 2026 revenue package that repealed it. That same package also created a tax credit for domestic violence and human trafficking service providers. LB 901 Repealing it left the broad ImagiNE subsidy structure untouched. That is the point critics make about the 2026 session. Good Jobs First | The property had to be bought by a person operating a data center in Nebraska and then used outside the state. Equipment destined for use inside Nebraska did not meet that out of state purpose test. Neb. Rev. Stat. § 77-2704.62, as it read before the 2026 repeal LB 1080, § 5 (2012) | Repealed. LB 901 was approved by the Governor on April 7, 2026. LB 901 |
| LB 1261 private generation co-located with hyperscale data centers | LB 1261 lets a private company build and own a generating facility that serves an on site industrial customer with a projected new electric load of at least 1,000 megawatts. It bars any consumer owned electric supplier from condemning that facility. LB 1261 Baird Holm This is the legal door for the proposed Google campus in southeast Nebraska. Tenaska would power that campus and Tallgrass Energy would supply the natural gas. Flatwater Free Press Nebraska is an all public power state. Nebraska Power Review Board Before this law a public power district could have taken such a plant by eminent domain. Baird Holm Nebraska Public Media | The generating facility has to meet three conditions. 1) It has to sit next to or on the same site as the industrial customer. 2) It has to share an electrically equivalent point of grid interconnection with that customer. 3) It has to be approved by the Nebraska Power Review Board. The owner must sign a long term power purchase agreement, lease, joint venture, or other commercial contract with a consumer owned electric supplier. Unless the utility says otherwise, the facility may serve only the on site industrial customer. The exemption does not reach contracts executed after December 31, 2031. LB 1261 Baird Holm The Legislature passed the bill on April 10, 2026. The Governor approved it on April 14, 2026. It takes effect August 2, 2026. LB 1261 history Neb. Rev. Stat. § 70-670 | Enacted 2026 and effective August 2, 2026. LB 1261 Neb. Rev. Stat. § 70-670 |
| LB 1010 large load customer standards and data center incentive reporting | Not an incentive. It is a cost shield and a disclosure rule. Utilities have to adopt interconnection standards for large load customers. A large load customer is any retail customer asking for more than 20 megawatts at a single site. That captures essentially every AI data center. Baird Holm OPPD legislative and regulatory update Utilities get three powers. 1) They may set or negotiate rates, charges, and operating standards that push system costs onto those customers and cut the resource adequacy and financial risk to everyone else. 2) They may require other service. 3) They may buy load flexibility from them. Baird Holm | The same act makes owners and operators of data centers report to the Nebraska Department of Water, Energy, and Environment every year. They must report any incentive payments they take under the ImagiNE Nebraska Act and the Nebraska Advantage Act. ImagiNE Nebraska legislative changes LB 1010 also codifies the rules for energy storage resources. It puts them under the nameplate capacity tax of 3,518 dollars per megawatt per year in place of personal property tax. It passed on April 10, 2026 and takes effect August 2, 2026. Baird Holm LB 1010 | Enacted 2026 and effective August 2, 2026. Baird Holm Neb. Rev. Stat. § 70-670 |
| LB 526 cryptocurrency mining grid cost protection | Not an incentive. It shields other ratepayers from large computing loads. A public power supplier may make a cryptocurrency mining operation of one megawatt or larger pay directly or post a letter of credit for the infrastructure upgrades its load makes necessary. It may also impose terms and conditions on that operation. These requirements must be fair, reasonable, and not unduly discriminatory. The operation has to let the supplier interrupt its electric service under the supplier's rate schedules and policies. Every supplier has to publish on its website the number of mining operations in its territory and the annual energy use of each one. LB 526 | The supplier has to run a load study before imposing any requirement. Anyone planning to install a mining operation has to notify the local public power supplier and follow that supplier's interconnection requirements. LB 526 Senator Jacobson introduced it at the Governor's request. Governor Pillen signed it on May 20, 2025, with an operative date of October 1, 2025. Office of the Governor I read the signed act. It carries no excise tax on electricity used for mining. LB 526 slip law | Enacted 2025 and operative October 1, 2025. Office of the Governor LB 526 slip law |
| Foreign adversarial company bar on incentives | Not a benefit. It is an eligibility bar. No foreign adversarial company may take any reduction of tax, exemption from tax, or refund of tax under ImagiNE or any other Nebraska incentive program. The Department of Economic Development asks every applicant for its ownership structure. ImagiNE Nebraska legislative changes Neb. Rev. Stat. § 77-3,114 | A foreign adversary is any country listed in 15 C.F.R. 791.4 as of April 1, 2025. That list covers China including Hong Kong and Macau, Cuba, Iran, North Korea, and Russia. A foreign adversarial company is one that meets any of these. 1) Organized under the laws of a foreign adversary. 2) Principally doing business there. 3) Owned in whole or in part or controlled by such a government. 4) A parent or subsidiary of such a company. ImagiNE Nebraska legislative changes LB 1096 reworked the definitions of ownership, companies, and subsidiaries. It dropped parent companies from the bar and reached direct and indirect subsidiaries instead. It also limited incentive use among members of the same corporate group. These changes are operative August 2, 2026. LB 1096 Neb. Rev. Stat. § 77-3,114 | Active. LB 644 took effect October 1, 2025. LB 1096 is operative August 2, 2026. ImagiNE Nebraska legislative changes LB 1096 |
County and local programs
Box Butte County
Has an AI data center moratorium in place as of July 2, 2026. Nebraska Public Media county survey News Channel Nebraska No county incentive.
Buffalo County
Home to the city of Kearney, which built the city backed Tech oNE Crossing technology park. The park landed Compute North in 2019 and a Sequitor Edge AI data center scheduled to open in 2027. Kearney Hub City of Kearney Rural Radio Note that Buffalo County is not Kearney County, which is a separate county with an AI data center moratorium. Nebraska Public Media county survey
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Tech oNE Crossing technology park land and development agreements in Kearney | The City of Kearney developed a shovel ready technology park with the Economic Development Council of Buffalo County and the state Department of Economic Development. It then sells park land to AI data center builders under development agreements the city council approves. The park has Nebraska Public Power District service. Compute North invested up to 7.65 million dollars and added 10 jobs under its 2019 agreement. City of Kearney On August 26, 2025 the council approved the sale of about 19.8 acres to Shamrock Data LLC for a Sequitor Edge AI data center. Kearney City Council agenda memo, August 26, 2025 It is a roughly 40,000 square foot Tier III building on dual feed Nebraska Public Power District service. It is scheduled to open in 2027. Rural Radio Data Center Dynamics Baxtel The buyer is paying the city 1.35 million dollars for the parcel. So the park reads as land and infrastructure rather than a tax subsidy. Kearney Hub | Negotiated case by case. The buyer signs a development agreement that the Kearney City Council has to approve at a public meeting. City of Kearney The city writes conditions into the deal. The August 26, 2025 council memo for the Shamrock Data sale kept a right of first refusal. That lets Kearney buy the land back if the buyer does not apply for a building permit within one year of the sale. The memo also recorded the sale as reviewed for compliance with Neb. Rev. Stat. § 17-503. Kearney City Council agenda memo, August 26, 2025 The April 28, 2026 amendment added sound rules that cap noise past the property line at 60 decibels. They also spell out the city's recourse if the AI data center breaks them. Kearney City Council minutes, May 26, 2026 | Active with no end date. Each sale runs on its own council resolution and ordinance. So there is nothing to expire. The council last acted on the park on April 28, 2026. It adopted Resolution No. 2025-103A approving an amended purchase and sale agreement for Lot 3, Block 2, Tech One Fourth Subdivision in Buffalo County. That lot is now 16.43 acres. The amendment followed Shamrock Data LLC assigning the deal to Sequitor America LLC doing business as Sequitor Edge. Kearney City Council minutes, April 28, 2026 |
Butler County
Has an AI data center moratorium in place as of July 2, 2026. Nebraska Public Media county survey News Channel Nebraska No county incentive.
Cass County
The planning commission voted to recommend an AI data center moratorium plus zoning regulations to the board of commissioners, which would make Cass at least the twelfth Nebraska county with a moratorium. Nebraska Public Media county survey Nebraska Public Media on Cass County
Cherry County
Approved a six month moratorium on conditional use permits for AI data centers on July 14, 2026 while it drafts regulations. News Channel Nebraska
Custer County
Has an AI data center moratorium in place as of July 2, 2026. Nebraska Public Media county survey News Channel Nebraska No county incentive.
Douglas County
Google counts Omaha as one of its three Nebraska AI data center communities alongside Papillion and Lincoln. Google data centers in Nebraska Google spent about 1.2 billion dollars on Nebraska infrastructure in 2023 alone. Nebraska Examiner I found no city or county incentive here beyond the state programs.
Dundy County
Has an AI data center moratorium in place as of July 2, 2026. Nebraska Public Media county survey News Channel Nebraska No county incentive.
Furnas County
Has an AI data center moratorium in place as of July 2, 2026. Nebraska Public Media county survey News Channel Nebraska No county incentive.
Gage County
The likely site of the proposed Google campus that Tenaska would power with a privately built natural gas plant using carbon capture and that Tallgrass Energy would supply, a project documents put at 1,000 to 3,000 megawatts and online as soon as 2029. Tenaska optioned farmland in Gage County, including about 80 acres from State Senator Myron Dorn, whose district covers the county. Flatwater Free Press Flatwater Free Press on Senator Dorn After a hearing that ran about four hours on June 16, 2026 the county planning and zoning commission voted unanimously to recommend an 18 month moratorium on conditional and special use permits for AI data centers and sent it to the board of supervisors. Nebraska Public Media The board took a briefing on that recommendation the following week and I found no report of a final board vote through August 2, 2026, so the moratorium is still a recommendation rather than county law. Beatrice Daily Sun
Garfield County
In the process of adopting an AI data center moratorium as of July 2, 2026, waiting on a confirming vote. Nebraska Public Media county survey
Harlan County
Has an AI data center moratorium in place as of July 2, 2026. Nebraska Public Media county survey News Channel Nebraska No county incentive.
Hayes County
Has an AI data center moratorium in place as of July 2, 2026. Nebraska Public Media county survey News Channel Nebraska No county incentive.
Johnson County
Has an AI data center moratorium in place as of July 2, 2026. Nebraska Public Media county survey News Channel Nebraska No county incentive.
Kearney County
Has an AI data center moratorium in place as of July 2, 2026. Nebraska Public Media county survey Kearney County is not the city of Kearney, which sits in Buffalo County and is courting AI data centers through its technology park. Kearney Hub
Keith County
No moratorium. The zoning administrator said the county is writing AI data centers into its new comprehensive plan on the view that a legal activity cannot be blocked but can be regulated. Nebraska Public Media county survey
Lancaster County
Google confirmed a 600 million dollar AI data center in northeast Lincoln in 2023, on roughly 580 acres near Interstate 80 and North 56th Street. Nebraska Examiner I found no city or county incentive beyond the state programs.
Otoe County
Commissioners passed a one year moratorium on new AI data centers on May 19, 2026, the move that started the statewide wave. Residents pointed to the Google and Tenaska proposal and to the fact that the county had no regulations of its own. Nebraska Public Media county survey 1011 Now Nebraska Public Media on the Otoe vote
Sarpy County
Nebraska's largest AI data center cluster. Meta's Sarpy campus represents more than 2.5 billion dollars of investment in Nebraska, broke ground in 2017, and supports more than 300 operational jobs. Meta Sarpy Data Center Meta expanded the Papillion site to nine buildings and about four million square feet. Data Center Dynamics Google runs one of its three Nebraska campuses at Papillion as well. Google data centers in Nebraska The tax relief here flows from the state ImagiNE and legacy Nebraska Advantage programs. I found no Sarpy County incentive of its own. Neb. Rev. Stat. § 77-6831
Seward County
Adopted an AI data center moratorium, the most recent of the eleven counties Nebraska Public Media counted as having one in place as of July 2, 2026. Nebraska Public Media county survey
Nevada runs its AI data center incentive through one statute. The sales and use tax rate on qualified equipment drops to as low as 2 percent and up to 75 percent of the personal property tax is abated, in either case for 10 or 20 years, and colocation tenants can share the break. NRS 360.754 GOED Data Center Tax Abatements The statute is written to run through December 31, 2056, so there is a long runway but not an open ended one. NRS 360.754 Nevada charges no corporate income tax, so there is nothing to credit against. GOED Incentive Programs, updated January 2026 GOED Nevada business handbook The 2025 Legislature left the program alone after Governor Lombardo vetoed a community benefits bill, and because Nevada legislates only in odd numbered years the next real chance to change the statute is 2027. AB226 veto message Nevada Constitution Article 4 Section 2
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Data center sales and use tax abatement | The sales and use tax rate on qualified AI data center capital equipment falls to as low as 2 percent for 10 or 20 years. NRS 360.754 GOED Incentive Programs, updated January 2026 The cut all the way to 2 percent is not automatic. It takes a two thirds vote of the board of the Governor's Office of Economic Development. If the board does not approve that vote the rate falls only to 4.6 percent. GOED Tax Abatement Overview GOED Nevada Urban and Rural Incentive Guide, updated August 2025 GOED Data Center Tax Abatements The 2 percent an AI data center still pays is roughly the share the state keeps for itself. The abatement therefore lands on the local portion of the tax rather than the state portion. The Nevada Independent | For the 10 year tier the company and its colocated tenants must invest at least 25 million dollars in cumulative capital expenditures. They must also employ at least 10 full time Nevada residents. Both tests must be met within the first 5 years. For the 20 year tier the thresholds are 100 million dollars and 50 full time Nevada residents. NRS 360.754 GOED Data Center Tax Abatements Wages must equal at least 100 percent of the statewide average wage. GOED applications for fiscal year 2026 list that wage as 31.57 dollars per hour. SV RNO Property Owner 1 LLC board packet, February 5, 2026 The company must 1) register in Nevada and stay in business for 10 years, 2) offer health insurance and pay at least 65 percent of the premium, and 3) draw at least half its construction workforce from Nevada residents. Colocation tenants qualify if they sign a contract of at least 2 years for the space and hold a Nevada state business license. A tenant abatement can never exceed the percentage or the duration of the host abatement. NRS 360.754 GOED Data Center Tax Abatements | Active as of July 2026. The statute carries a hard back stop. NRS 360.754 is effective through December 31, 2056. No partial abatement may be granted under it after that date. GOED also cannot approve an application received on or after January 1, 2036. NRS 360.754 Neither the 2025 regular session nor the November 2025 special session changed it. Bills signed by the Governor, 83rd session KUNR |
| Data center personal property tax abatement | An abatement of up to 75 percent of the personal property tax on AI data center equipment. The term is 10 or 20 years, matching whichever term the sales tax abatement runs. NRS 360.754 GOED Data Center Tax Abatements GOED incentives page The abatement covers taxes imposed under NRS chapter 361 and does not reach real property. An AI data center that wants a real property break has to look instead to the large investment abatements described below or to the recycling abatement. Neither of those is an AI data center program. GOED Incentive Programs, updated January 2026 | The tiers are the same ones the sales tax abatement uses. Twenty five million dollars invested and 10 Nevada resident jobs within 5 years buys the 10 year term. The 20 year term takes 100 million dollars and 50 jobs. Both tiers require wages at or above the statewide average wage. Colocation tenants can share the abatement under contracts of at least 2 years. NRS 360.754 GOED Data Center Tax Abatements | Active as of July 2026. It is available through December 31, 2056 alongside the sales tax piece. NRS 360.754 Recent awards show the two abatements granted together. GOED approved PR TX 1 LLC in Storey County on November 10, 2025. The award was 16.8 million dollars of sales tax abatement plus 6,550,806 dollars of personal property tax abatement. PR TX 1 LLC board packet |
| Sales tax exemption for delivered electricity, gas, and water | Gross receipts from the sale of gas, electricity, and water delivered to consumers through mains, lines, or pipes are exempt from Nevada sales and use tax. Grid power delivered to an AI data center runs through those same lines, so it carries no Nevada sales tax. The local school support tax carries the same exemption. NRS 372.295 NRS 374.300 This is a general exemption every consumer in the state gets. It is not an AI data center program. | It applies automatically to power delivered through utility lines. There is nothing to apply for. NRS 372.295 | Active as of July 2026. NRS 372.295 NRS 372.295 as published by the Nevada Legislature |
| Economic Development Rate Rider | A discount off the Base Tariff Energy Rate that NV Energy charges a large new customer. It runs on a fixed ten year ladder. There is no reduction in years one and two. The discount is 30 percent in years three and four. It drops to 20 percent in years five through eight and 10 percent in years nine and ten. After year ten the rate reverts to the standard charge. Schedule EDRR tariff The whole program is capped at 50 megawatts statewide. Nevada Power's own set aside is 25 megawatts. It was never sized for an AI data center campus. Schedule EDRR tariff | The customer has to 1) be new to Nevada utility service, 2) carry new load above 300 kilowatts, 3) hold an annual load factor of 50 percent or better every year, and 4) have already applied for every other state and local incentive it is eligible for. It also needs a letter of eligibility from the Governor's Office of Economic Development and a service agreement approved by the Public Utilities Commission of Nevada. If it breaks the terms the Commission can order it to pay back the entire cumulative discount. Schedule EDRR tariff NRS 704.7871 to 704.7882 | Closed to new applicants, whatever the GOED sheet says. NRS 704.788 bars the Governor's Office of Economic Development from accepting an application or giving initial approval. It also bars the Commission from approving an applicant. The cutoff is the earlier of December 31, 2024 or the date the set aside capacity is fully allocated. NRS 704.788 The January 2026 GOED incentive sheet still lists the rate rider among Nevada's programs. That reads as stale rather than as a live offer. GOED Incentive Programs, updated January 2026 Contracts already signed keep running until the last one terminates. NRS 704.788 |
| No corporate income or franchise tax | Nevada levies no corporate income tax, no franchise tax, and no personal income tax. GOED Nevada business handbook There are no income tax credits for AI data centers, and none are needed. GOED Incentive Programs, updated January 2026 Employers pay a modified business tax on payroll instead. GOED Incentive Programs, updated January 2026 Businesses above a revenue threshold pay a commerce tax on gross revenue. Nevada Department of Taxation Commerce Tax GOED Nevada business handbook | This is simply how Nevada taxes. It reaches every business in the state. There is nothing to apply for. GOED Nevada business handbook | Active as of July 2026. GOED Incentive Programs, updated January 2026 |
| Standard tax abatements | GOED's standard track 1) cuts sales and use tax on qualified capital equipment to as low as 2 percent for up to 2 years, 2) abates up to 50 percent of the personal property tax for up to 10 years, and 3) abates up to 50 percent of the modified business tax on quarterly payroll above 50,000 dollars for up to 4 years. NRS 360.750 GOED Incentive Programs, updated January 2026 GOED incentives page A project that cannot hit the AI data center tiers can fall back on this. The thresholds are lower but the terms are much shorter. | Wages must be at least 100 percent of the statewide average wage. That wage is 31.57 dollars per hour for fiscal year 2026. In an urban county the project needs at least 5 million dollars of equipment for an industrial or manufacturing facility. Other facility types need 1 million dollars. Either way the project needs 50 or more new full time jobs. In a rural county those figures drop to 1 million dollars and 250,000 dollars. The job count drops to 10 or more new full time jobs. GOED Incentive Programs, updated January 2026 GOED Nevada Urban and Rural Incentive Guide, updated August 2025 | Active as of July 2026 and used regularly. GOED awarded standard abatements to nine companies at its May 14, 2026 meeting. GOED board agenda, May 14, 2026 8 News Now on the May 2026 GOED awards |
| Large capital investment abatements of 1 billion dollars and 3.5 billion dollars | For a capital investment of at least 1 billion dollars, 1) the sales and use tax rate is reduced to somewhere between 4.6 percent and 6.125 percent for 15 years, 2) the modified business tax is abated 75 percent for 10 years, and 3) real and personal property taxes are abated 75 percent for 10 years. At 3.5 billion dollars the sales and use range is the same for 15 years. The modified business tax and the real and personal property taxes are abated 100 percent for 10 years. GOED Incentive Programs, updated January 2026 These are the only Nevada packages that touch real property for a large industrial project. A very large AI data center campus should price them against the data center statute before choosing. | The tiers turn purely on the size of the capital investment. The transferable tax credits that once rode along with both packages are gone. The credits attached to the 3.5 billion dollar package were exhausted and sunset on July 1, 2022. They were originally 195 million dollars, at 12,500 dollars for each qualified employee up to 6,000 jobs. The credits attached to the 1 billion dollar package sunset on July 1, 2025. Those were 38 million dollars, at 9,500 dollars for each qualified employee up to 4,000 jobs. The abatements themselves are still listed. GOED Incentive Programs, updated January 2026 | The abatements are listed as available in the GOED sheet updated January 2026. The transferable tax credits are sunset. GOED Incentive Programs, updated January 2026 GOED incentives page |
County and local programs
Clark County
AI data centers in Henderson, Las Vegas, and North Las Vegas run on the state abatements and the county grants nothing of its own. Clark County tax abatement page Nevada Controller fiscal year 2025 GASB 77 tax abatement report In 2026 the county debated a moratorium and declined it, Henderson introduced one and then rejected it, Boulder City put a land use question on the November ballot, and the federal government approved an AI data center on public land next door to Boulder City. Nevada Current The Nevada Independent Boulder City current ballot questions Nevada Public Radio
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Google Henderson data center abatements of 2018 | GOED approved 25.2 million dollars of incentives for Google's 600 million dollar campus in Henderson. That included a 2 percent sales and use tax rate for 20 years worth 18.75 million dollars. It also included a personal property tax abatement of up to 75 percent. Reno Gazette Journal Clark County's own tax abatement page covers only the statutory property tax caps. The AI data center break flows entirely through the state program. Clark County | Google qualified on the 20 year state tier. That tier takes 100 million dollars of investment and 50 Nevada resident jobs within 5 years, at the statewide average wage or better. NRS 360.754 GOED Data Center Tax Abatements | Still running. The package was approved in November 2018 on the 20 year tier. Reno Gazette Journal The state program behind it is still giving up real money in the county. In fiscal year 2025 Nevada's Controller counted 18,724,170 dollars of NRS 360.754 abatement against Clark County local governments. The Controller counted another 21,636,819 dollars against the Clark County School District. Nevada Controller fiscal year 2025 GASB 77 tax abatement report That report does not break the figures out by company. It shows the program is live in Clark County rather than confirming Google's own draw. |
| County and city siting decisions in 2026 | No local tax benefit. On July 7, 2026 the Clark County Commission heard a push for an AI data center moratorium and took no action. Commissioners said they would study it further. Nevada Current Henderson introduced a bill on June 16, 2026 for a pause of up to 180 days. It had not adopted the bill as of July 19, 2026. FOX5 Las Vegas Nevada Business Exchange Meanwhile the county approved a Switch expansion near Warm Springs Road next to its Core Campus. Approvals kept moving while the policy argument ran. Government Technology | A developer in Clark County still clears ordinary county or city zoning and use permits, then applies separately to GOED for the state abatement. NRS 360.754 GOED Data Center Tax Abatements One route skips local zoning entirely. On June 26, 2026 the federal Bureau of Land Management approved the Townsite Data Center on 81 acres of public land in the Eldorado Valley next to Boulder City. The city says it will appeal. Nevada Public Radio | No moratorium is in force anywhere in Clark County as of July 2026. Henderson set its vote for the July 21, 2026 council meeting. The Nevada Independent That night the council rejected the 180 day pause and told staff to draft licensing rules instead. It will make every future AI data center negotiate its own development agreement with the city. Las Vegas Sun The Nevada Independent |
| Boulder City Question 1 of November 2026 | No tax benefit. Boulder City voters decide on November 3, 2026 whether AI data center facilities should be an approved land use inside the Eldorado Valley Transfer Area. The question reaches only the part outside the multi species habitat conservation easement. Ballotpedia The land came to the city under a 1995 agreement with the Colorado River Commission that limits how it may be used. A yes vote is what would open that acreage. Boulder City ballot question explanation and digest | It reaches only the Eldorado Valley Transfer Area land Boulder City holds. Las Vegas Review Journal Section 144(1) of the Boulder City Charter limits that land to public recreational uses, solar energy facilities, a desert tortoise preserve, utility lines, easements, roads, and rights of way. It also allows communication towers, antennas, similar governmental uses, and existing lease and lease options. Subsection 2 of the same section sends any other use to the registered voters of the city. Boulder City Charter Section 144(1) Boulder City sits inside Clark County and has no separate county FIPS code. | Pending. The Boulder City Council approved the question on February 24, 2026 for the November 3, 2026 general election. The voters have not decided it yet. Boulder City current ballot questions |
Lyon County
Lyon County is the busiest new AI data center frontier in northern Nevada, with Microsoft land at Silver Springs and Fernley, a Tract AI data center park, and the large proposed Monarch project. Carson Now Data Center Dynamics The county grants no tax abatement of its own and has so far turned down resident calls for a moratorium.
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| County land use approvals rather than tax breaks | No county tax incentive. What Lyon County supplies is entitlement and power. On July 2, 2026 the Board of County Commissioners passed an ordinance creating the North Lyon County Power General Improvement District to furnish electric light and power. Residents read that as groundwork for serving large industrial load. Nevada Business Exchange Commissioners declined resident requests for a moratorium on AI data center approvals. Carson Now | A developer works through county rezoning, development agreements, and parcel maps, then applies separately to GOED for the state abatement under NRS 360.754. NRS 360.754 GOED Data Center Tax Abatements | Open and live as of July 2026. Lyon County has adopted no pause on AI data center approvals. Its next step is a community workshop on August 3, 2026. The Nevada Independent No state AI data center abatement has reached the county yet either. Nevada's Controller recorded zero dollars of NRS 360.754 abatement against Lyon County local governments in fiscal year 2025. Nevada Controller fiscal year 2025 GASB 77 tax abatement report |
| Monarch Data Center proposal | Copia Power DevCo has proposed the Monarch Data Center, about 4.6 million square feet across roughly 505 acres on Penrose Lane in Mason Valley. The plan includes 1) eight two story buildings up to 95 feet tall, 2) a 500 megawatt battery storage system, 3) a 500 megawatt natural gas backup system, and 4) an electrical substation. Carson Now KOLO The Lyon County Planning Commission voted 4 to 3 on July 14, 2026 to advance it over heavy public opposition. The county commissioners take it up next. KOLO | It was still working through the county approval process as of July 2026. Any state tax abatement would be a separate GOED application. Carson Now Reported estimates put water use below 800 acre feet a year, roughly 260.7 million gallons. The design is closed loop and air cooled. Carson Now KOLO | Pending. The Lyon County Board of County Commissioners is set to hear it on August 6, 2026. That is three days after a community workshop on AI data centers on August 3, 2026. The Comstock Chronicle The Nevada Independent |
| Silver Springs and Fernley land assembly | No local tax program. Tract completed a rezoning and development agreement with Lyon County. It picked up a 1,060 acre parcel near Silver Springs for an AI data center park. Baxtel Microsoft owns land at Silver Springs. In 2025 it won planning commission approval to restructure roughly 274 acres it bought in January 2023 for 16.425 million dollars. It also bought about 300 acres in the Victory Logistics District at Fernley. Data Center Dynamics | These are land holdings and entitlements only. None of them carries a disclosed Lyon County tax abatement. Data Center Dynamics | Live, with no end date. These are land entitlements rather than a dated incentive. Tract closed on the Silver Springs acreage on September 17, 2025. It says an initial 700 megawatts of the site's 1.6 gigawatt capacity is under utility study. Tract Capital |
Nye County
Nye County adopted a temporary moratorium on AI data centers in June 2026 while it writes an ordinance, which makes it the clearest case in Nevada of a county closing its doors rather than opening them. Pahrump Valley Times
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Temporary data center moratorium | No incentive. The Nye County Board of Commissioners approved a moratorium on AI data centers at its June 2, 2026 meeting. The Nye County Water District Governing Board had asked for one on May 26, 2026. Pahrump Valley Times Nevada Business Exchange The pause holds until the county updates its regulations. The county manager estimated the ordinance would take roughly 90 days to draft. Pahrump Valley Times | A county wide ordinance applies in the meantime. Towns inside the county will get to decide whether to opt out of an extended moratorium once a first draft exists. Tonopah is one of them. Nevada Business Exchange | In effect now, with no fixed end date. The item the commissioners acted on reaches applications for any AI data center or anything associated with one. Nye County Board of Commissioners agenda, June 2, 2026 The pause was still in force on July 9, 2026. The regulating ordinance had not been drafted. The Nevada Independent |
Storey County
The Tahoe Reno Industrial Center holds more than half of the AI data centers carrying active Nevada abatements, Google and Switch and Vantage among them. The Nevada Independent Vantage Data Centers NV12 board packet Storey County grants no AI data center tax program of its own and works entirely through the state statute. It is also where the two most recent state approvals landed, in November 2025 and February 2026. PR TX 1 LLC board packet SV RNO Property Owner 1 LLC board packet
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| State data center abatements applied to Tahoe Reno Industrial Center projects | AI data centers at the Tahoe Reno Industrial Center hold GOED approved abatements. Those cut sales tax on equipment to as low as 2 percent and personal property tax by up to 75 percent. NRS 360.754 GOED incentives page Google announced a 600 million dollar campus there in 2020. Area Development In November 2024 GOED approved Vantage Data Centers NV12 for 19.2 million dollars of abatements on a project reported at about 254 million dollars. Vantage Data Centers NV12 board packet KOLO Trade and Industry Development The two most recent state awards are also here. PR TX 1 LLC was approved on November 10, 2025. SV RNO Property Owner 1 LLC was approved on February 5, 2026. Each award is 23,350,806 dollars over 10 years. Each promises 14 jobs at 54.29 dollars an hour. PR TX 1 LLC board packet SV RNO Property Owner 1 LLC board packet The county manager has said the abated projects still throw off net revenue for the county. The Nevada Independent | Projects qualify on the state tiers. Twenty five million dollars invested with 10 jobs buys a 10 year abatement. The 20 year abatement takes 100 million dollars with 50 jobs. NRS 360.754 GOED Data Center Tax Abatements Storey County runs no separate county abatement for AI data centers. The census tract covering the Tahoe Reno Industrial Center is a federally designated Opportunity Zone. It is one of the 61 Nevada tracts former Governor Sandoval nominated in 2018. It qualified only after Sandoval and Senator Dean Heller pressed Treasury, because local median income ran too high. Nevada Current Nevada Department of Business and Industry | Active as of July 2026. No partial abatement may be granted under NRS 360.754 after December 31, 2056. NRS 360.754 The money moving through Storey County is large. In fiscal year 2025 Nevada's Controller counted 9,740,053 dollars of NRS 360.754 abatement against Storey County local governments. The Controller counted another 11,255,172 dollars against the Storey County School District. Nevada Controller fiscal year 2025 GASB 77 tax abatement report |
| Tahoe Reno Industrial Center development agreement and infrastructure reimbursement | The industrial park runs under a development agreement and development handbook. The Storey County Board of County Commissioners adopted Ordinance No. 163 approving that agreement on February 1, 2000, and the agreement incorporates every exhibit by reference. Those sit on top of heavy industrial zoning adopted in 1999. Storey County Tahoe Reno Industrial Center The park markets itself as carrying no state or local government fees or exactions on development. The county also publishes an infrastructure reimbursement process. Under it the private developer builds public infrastructure, dedicates it to the county, and then seeks reimbursement. Eligible work is streets, sidewalks and streetlights, flood control and drainage, county building complexes, and public parks. Storey County Infrastructure Reimbursement Process Storey County Tahoe Reno Industrial Center What a tenant actually gets is entitled land and finished infrastructure rather than a direct tax cut. | It applies to companies locating inside the privately developed park in Storey County. The reimbursement runs to the park developers rather than to the tenant. Storey County Infrastructure Reimbursement Process Storey County | In effect now, with no published end date. Storey County still posts the 1999 zoning ordinance, the development agreement and its exhibits, and the infrastructure reimbursement process as the governing documents for the park. Storey County The county's own current information deck markets the park as 1) 107,000 acres with 70,000 buildable acres pre zoned heavy industrial, 2) a guaranteed grading permit within 7 days, and 3) a guaranteed building permit within 30 days. Storey County Tahoe Reno Industrial Center information deck |
Washoe County
Apple's Reno Technology Park campus carries both an old negotiated local package from 2012 and a large fresh state abatement from 2024, and the downtown Reno sales tax reimbursement that came with the first deal is still paying out. Las Vegas Sun Apple Inc. board packet, July 25, 2024 City of Reno annual report to the Legislature, fiscal year 2024 to 2025 The City of Reno has since paused new AI data center approvals into 2027. Nevada Current
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Apple Reno data center negotiated package of 2012 | The original package was worth 89 million dollars in abatements over 10 years. Apple's personal property tax on servers was abated 85 percent. Washoe County gave up more than 803,000 dollars a year. Las Vegas Sun Reno Gazette Journal The state cut sales tax on server purchases to 2 percent. Apple opened a purchasing office in a downtown Reno tourism improvement district that reimbursed 75 percent of the remaining 2 percent. That left an effective rate near 0.5 percent instead of 7.5 percent on roughly 1 billion dollars of equipment. Las Vegas Sun Manufacturing.net That reimbursement is still running. The Tessera District paid Apple 12,433,520 dollars of sales tax proceeds between January 2019 and June 30, 2025. Apple was the only business operating in the district on that date. City of Reno annual report to the Legislature, fiscal year 2024 to 2025 | This was a negotiated deal endorsed by the Washoe County Commission and approved by the Reno City Council in June 2012. It predates the data center statute. Las Vegas Sun The reimbursement required routing equipment through the downtown office. The Reno City Council amended the agreement on May 10, 2017 to let Apple buy about half a city block. Apple could then build a 30,000 square foot purchasing and receiving facility on it. City of Reno annual report to the Legislature, fiscal year 2024 to 2025 | Partly live. The reimbursement side is still running. The City of Reno counts Tessera as one of its three active tourism improvement districts. City of Reno annual report to the Legislature, fiscal year 2024 to 2025 It does not run forever. NRS 271A.100 stops the distributions at the end of the fiscal year holding the 20th anniversary of the ordinance that created the district. The cutoff moves to the 25th anniversary if the district drew nothing in its first 5 full fiscal years. Reno created the Tessera District in September 2009. NRS 271A.100 City of Reno annual report to the Legislature, fiscal year 2024 to 2025 |
| Apple expansion abatement approved by GOED in 2024 | GOED approved Apple for 62,153,275 dollars of abatement for an expansion at the Reno Technology Park. All of it is the sales and use tax piece, at 2 percent for 10 years. Apple Inc. board packet, July 25, 2024 Northern Nevada Business Weekly The application was filed as an expansion rather than a replacement. It sits on top of the 2012 deal rather than swallowing it. It rests on 742,071,428 dollars of new equipment inside 5 years, against a 25 million dollar threshold. Apple Inc. board packet, July 25, 2024 | Approved on the state 10 year tier under NRS 360.754. The award covers 10 new jobs at an average wage of 32.51 dollars an hour, against a statutory 29.28 dollars. The company pays 82 percent of the health insurance premium, against a 65 percent minimum. Apple Inc. board packet, July 25, 2024 NRS 360.754 | Approved by the GOED board on July 25, 2024 and running now. Apple Inc. board packet, July 25, 2024 Nevada's Controller counted 1,235,776 dollars of NRS 360.754 abatement against Washoe County local governments in fiscal year 2025. The report does not name the companies behind that figure. Nevada Controller fiscal year 2025 GASB 77 tax abatement report |
| City of Reno moratorium on new data center approvals | There is no local incentive here, only a restriction a developer has to plan around. On June 1, 2026 the Reno City Council voted 6 to 1 to extend its pause on AI data center approvals. The city will take no new applications until August 31, 2027 or until it adopts new regulations, whichever comes first. Nevada Current Reno Gazette Journal Those regulations are expected to cover energy use, water use, and community benefits. The Nevada Independent | It reaches new AI data center applications inside Reno city limits only. It does not bind unincorporated Washoe County, Sparks, or Storey County. Council members have talked about wanting a unified regional approach instead. KOLO The Nevada Independent | In force right now and set to run to August 31, 2027. Reno was the first city in Nevada to adopt a pause like this. It bites on special use permits for new AI data centers. KUNR |
New Hampshire has no AI data center incentive program and the 2026 session adjourned in June without creating one. New Hampshire Bulletin The Dartmouth NHPR session wrap The pitch here is structural rather than programmatic. The state levies no general sales or use tax and no property tax on machinery and equipment, so servers arrive untaxed and stay untaxed. NH Economy N.H. RSA 72:6 NH Fiscal Policy Institute It also repealed its electricity consumption tax effective January 1, 2019, which removes one line item from a very large power bill. N.H. DRA TIR 2018-006
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| No general sales or use tax | Servers, networking gear, cooling plant, and construction materials are untaxed at purchase, because New Hampshire levies no general sales or use tax at all. NH Economy A colocation tenant gets the same treatment as an owner, since there is no tax to exempt anyone from. The National Conference of State Legislatures counts 38 states that reach a similar result for AI data centers only by writing a dedicated exemption into law. New Hampshire is not one of them. NCSL | None. The treatment is automatic for every buyer, with no minimum investment, job count, wage floor, term limit, or sunset date. NH Economy | Active. There is no program to expire, because the absence of a sales tax is a feature of the tax code rather than an incentive with a term. NH Economy |
| No property tax on machinery and equipment | New Hampshire taxes real estate and stops there, so the local property tax falls on land and buildings. N.H. RSA 72:6 Machinery and equipment are outside the tax base. There is no inventory tax. That means racked IT equipment is not assessed the way it is in many other states. Area Development NH Economy The building shell and the land under it stay fully taxable at local rates. | None. This is how the general property tax base is drawn, not an application program. N.H. RSA 72:6 | Active and long standing, with no expiration written into the statute. N.H. RSA 72:6 |
| Local option new construction property tax exemption | A town or city that adopts the exemption can shield a set share of the new assessed value created by commercial or industrial construction. The shield is capped at 50 percent a year. It can run for up to 10 years after the construction. N.H. RSA 72:81 It reaches only the municipal and local school portion of the bill. It never touches the state education property tax or the county tax. N.H. RSA 72:81 | The local legislative body has to adopt the program by vote. That vote must fix 1) the percentage, 2) the duration, and 3) a reference to zoning use category definitions if the town is using its own. N.H. RSA 72:82 An adopting vote lasts a maximum of 5 tax years. So a town has to re-adopt it to keep taking new applications. An exemption already granted still runs out the term it was granted under. N.H. RSA 72:82 Once adopted, the rate and duration are granted case by case, based on the amount and value of the public benefit the governing body finds. N.H. RSA 72:81 Whether an AI data center qualifies is a real question. The statutory definitions of commercial and industrial uses name retail, wholesale, service, manufacturing, warehousing, research and development, and waste processing. None of them names a data center. A municipality may swap in its own zoning definitions instead. N.H. RSA 72:80 Londonderry spells out both lists at length in its own ordinance. It likewise names no such use. Londonderry program ordinance | Active as enabling law, and adopted by a scattering of municipalities rather than statewide. N.H. RSA 72:81 |
| Economic Revitalization Zone tax credit | A nonrefundable credit taken against the Business Profits Tax first and then the Business Enterprise Tax, for capital investment and job creation inside a certified zone. N.H. RSA 162-N:5 N.H. DRA The credit equals 4, 5, or 6 percent of the salary of each new full time job, depending on how far the wage clears the state minimum wage. It then adds 4 percent of the lesser of actual facility and equipment cost or 20,000 dollars for each new full time job. N.H. RSA 162-N:6 A single taxpayer may use no more than 40,000 dollars of credit in a calendar year. The statewide pool is 825,000 dollars a year. N.H. RSA 162-N:5 That annual cap is where the widely quoted 200,000 dollar per business figure comes from, since five years at 40,000 dollars is 200,000 dollars. Unused credit carries forward up to five years. The credits are not transferable. N.H. RSA 162-N:5 N.H. DRA | The project has to 1) sit in an area certified as an Economic Revitalization Zone by the commissioner of business and economic affairs, 2) make capital improvements, and 3) create at least one net new full time job. N.H. RSA 162-N:4 N.H. DRA The commissioner issues a letter of certification fixing the final credit amount by March 31 each year. N.H. RSA 162-N:4 An AI data center employs very few people once it is running, so the jobs half of this formula does most of its work during construction rather than after. | Active today but repealed effective January 1, 2028 by 2007 N.H. Laws chapter 263 section 123. The 2026 attempt to enlarge the program did not become law. N.H. DRA N.H. RSA 162-N:5 SB 404 (2026) |
| Coos County Job Creation Tax Credit | A credit against the Business Enterprise Tax. It is 750 dollars for each qualified employee earning at least 150 percent but less than 200 percent of the state minimum wage. It is 1,000 dollars for each qualified employee at 200 percent or more. N.H. RSA 77-E:3-c Employer paid medical and dental health care costs count toward actual wages paid when you run that test. The state application form works out that wage figure as an hourly rate. N.H. RSA 162-Q:1 Form CJCTC-1A The credit runs up to 5 consecutive tax periods. It is renewable for 4 more consecutive years after the initial grant. Unused amounts carry forward up to 5 years. They apply ahead of any other carry forward credit. N.H. RSA 77-E:3-c | The jobs have to be new full time year round positions in Coos County, certified by the commissioner of business and economic affairs. Coos County If the position stops existing during the 5 year run, the employer cannot claim the credit for that period or any later one. No additional credit may be granted for a tax period after December 31, 2027. N.H. RSA 77-E:3-c | Active, with no new credit granted for tax periods after December 31, 2027. N.H. RSA 77-E:3-c |
| No state tax on electricity consumption | New Hampshire repealed its statewide electricity consumption tax effective January 1, 2019, so no state tax rides on the power an AI data center draws. N.H. DRA TIR 2018-006 Market electricity rates in New England are the real operating cost problem here. They are high enough that state officials and data center consultants say so out loud. The Dartmouth The chapter that carried the tax was N.H. RSA 83-E. The General Court still lists it as repealed. N.H. RSA 83-E | None. The repeal reached every consumer automatically. N.H. DRA TIR 2018-006 | Active since the 2019 repeal. Be careful with the state website, because the Department of Revenue Administration still keeps an Electricity Consumption Tax page live even though the tax is gone. N.H. DRA |
| Off-grid electricity provider law | Creates a category of off grid electricity provider that sits outside public utility regulation. So a large load can build or buy dedicated generation without regulated rates and the permitting that comes with them. 2025 N.H. Laws ch. 285 N.H. RSA 374:3-c This is a siting and speed advantage rather than a tax break. Commentators who like the law and commentators who do not both describe it as the state main play for attracting large compute loads. ACE Acadia Center | The supply arrangement must stay off the regulated electric grid. Connect to it and the regulatory exemption goes away. ACE | Signed by Governor Ayotte and effective August 1, 2025. N.H. General Court bill status |
| Municipal tax increment financing districts | A municipality may create a development district and adopt a tax increment financing plan. That plan captures the growth in assessed value inside the district to pay for the public infrastructure serving it. N.H. RSA 162-K:9 This is a way to finance roads, water, and utility work, not a tax cut for the occupant. NH Office of Planning and Development | The municipality has to establish the district and adopt the financing plan under the chapter. N.H. RSA 162-K:9 Nothing in the chapter is AI data center specific. As of August 2, 2026 I found no New Hampshire district on the state list that was created for one. NH Office of Planning and Development | Active as enabling law, used by municipalities for downtown and industrial park infrastructure. NH Office of Planning and Development |
| WorkInvestNH job training grants | Matching grants that reimburse an employer for 50 percent of approved training costs. WorkInvestNH NH Employment Security training and recruitment for employers The program used to be called the New Hampshire Job Training Fund. Coos County workforce page New Hampshire Employment Security runs the grant alongside its other free employer services. Those services include 1) the Job Match System posting portal, 2) job fairs, 3) business service representatives, and 4) ApprenticeshipNH. NH Employment Security training and recruitment for employers | The employer applies to New Hampshire Employment Security and matches the state money one for one. Coos County workforce page The training has to meet the program approval standards. WorkInvestNH An AI data center hires a small permanent staff, so there is not much here to collect. | Active and open to applications. WorkInvestNH |
County and local programs
Belknap County
Laconia hosts one of the two small Fidium colocation sites in the state. Fidium The city did adopt the RSA 72:81 construction exemption once, by Resolution RES-2018-01, at 50 percent for five years and for industrial uses only, starting in the 2018 tax year. Laconia RES-2018-01 An adopting vote runs a maximum of 5 tax years, so that authorization lapsed after the 2022 tax year and I found no re-adoption, which leaves no local AI data center incentive on the books here today. N.H. RSA 72:82
Coos County
The only county scoped tax credit in the state rewards new jobs here, though I found no AI data center in Coos today. Coos County
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Coos County Job Creation Tax Credit | A state Business Enterprise Tax credit of 750 dollars per new full time year round job paying at least 150 percent but less than 200 percent of the state minimum wage. The credit is 1,000 dollars per job at 200 percent or more. N.H. RSA 77-E:3-c Employer paid medical and dental costs count toward the wage figure. N.H. RSA 162-Q:1 The credit runs up to 5 consecutive tax periods. It is renewable for 4 more consecutive years. N.H. RSA 77-E:3-c | The jobs have to be new full time year round positions in Coos County, certified by the commissioner of business and economic affairs. The credit is claimed on Form CJCTC-1A. Form CJCTC-1A Coos County No additional credit may be granted for a tax period after December 31, 2027. N.H. RSA 77-E:3-c | Active now and sunsetting. Coos County still runs this as the only county tax credit in the state. The statute cuts it off so that no additional credit is granted for any tax period after December 31, 2027. Coos County N.H. RSA 77-E:3-c |
Hillsborough County
Manchester holds the largest data center in the state, and Nashua adds state certified Economic Revitalization Zones. Baxtel Nashua Manchester runs its business tax relief through the RSA 79-E community revitalization program rather than the RSA 72:81 construction exemption, and I found no Manchester adoption of RSA 72:81. Manchester Community Revitalization Tax Relief Incentive Manchester Economic Development
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Nashua Economic Revitalization Zone credits | A business that invests and adds jobs in one of Nashua certified Economic Revitalization Zones can earn credits against the state Business Profits Tax and Business Enterprise Tax. Nashua Nashua advertises a maximum of 200,000 dollars of credit per business. That is just five years of the statutory 40,000 dollar annual cap on what one taxpayer may use. N.H. RSA 162-N:5 | The firm has to make capital improvements in plant, equipment, or machinery and create new full time jobs inside a certified zone. Nashua The underlying state credit disappears when the RSA 162-N repeal takes effect on January 1, 2028. N.H. RSA 162-N:5 | Active and sunsetting. Nashua still lists its Economic Revitalization Zones and the credit as open to businesses. The state Department of Revenue Administration still publishes the qualifying rules and the ERZ-2 application form. Nashua N.H. DRA The statute behind the credit carries a repeal note that takes effect January 1, 2028. N.H. RSA 162-N:5 |
Rockingham County
Portsmouth hosts a FirstLight colocation site. Cloud and Colocation Salem and Londonderry both run local property tax exemptions for new commercial and industrial construction. Salem Londonderry program ordinance Nottingham moved to block AI data centers outright after a proposal there collapsed. NHPR I found no Portsmouth adoption of the RSA 72:81 construction exemption.
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Salem commercial and industrial property tax exemption | Salem exempts a shrinking share of the increase in assessed value from commercial or industrial construction over five years. The exemption is 50 percent in year one and then 40, 30, 20, and 10 percent. Salem Only the municipal and local school portion of the bill comes down. The state education property tax and the county tax do not. N.H. RSA 72:81 | The Salem Town Council adopted the program on June 3, 2024 by Resolution 2024-09. Salem Resolution 2024-09 Salem adopted resolutions The use has to be commercial or industrial as the program defines it. The owner applies to the town before construction starts. Salem N.H. RSA 72:83 Read the calendar carefully, because an adopting vote lasts a maximum of 5 tax years under the statute. That puts the Salem authorization on course to lapse after the 2029 tax year unless the council re-adopts it. N.H. RSA 72:82 | Active now. The Salem Town Council was still granting exemptions under the program on June 1, 2026. That day it unanimously approved one for a childcare facility at 142 Main Street in the former Rite Aid building. Salem Town Hall Times Two housekeeping notes before you rely on the town paperwork. The town resolution list shows the adopting measure as Resolution 2024-09, Create Salem Commercial and Industrial Property Tax Incentive Program. The town web page that described the program now returns a not found error. Salem adopted resolutions Salem program page |
| Londonderry commercial and industrial tax exemption | Londonderry sorts approved projects into three tiers by the valuation they add. A Tier One project adds 10 million dollars or more. A Tier Two project adds between 5 and 10 million dollars. A Tier Three project clears 10 million dollars and is of exceptional and unusual public benefit. Londonderry program ordinance Tier One gets an exemption of 40 to 50 percent of the increase in assessed value in the first full tax year. Tier Two gets 30 to 40 percent. In each case the exemption then shrinks by 20, 30, 40, and 50 percent of the prior year amount over the next four years. Londonderry application Tier Three can run up to ten years. The exemption reaches only the municipal and local school portion of the bill. Londonderry application N.H. RSA 72:81 | The program is town wide. The ordinance defines the qualifying area as the Town of Londonderry, so there is no sub district map to check. Londonderry program ordinance The owner 1) applies before starting work and no later than December 31 before the tax year, 2) pays a 150 dollar application fee, and 3) demonstrates at least one listed public benefit such as job creation or tax base growth. Londonderry application The current application still points to Ordinance 2022-23 and to work started after June 20, 2022. The council noticed public hearings for March 3, 2025 on Ordinance 2025-01, which the notice describes as creating the Londonderry Commercial and Industrial Property Tax Incentive Program. A vote adopting the exemption runs for a maximum of 5 tax years, so a town has to re-adopt to keep its program alive. Londonderry legal notice N.H. RSA 72:82 Neither the commercial list nor the industrial list in the ordinance names an AI data center. Londonderry program ordinance | Active. Londonderry lists Ordinance 25-01, which adopts the program, among the town ordinances now in force. Londonderry ordinances 23-01 to present The end date is easy to miss, because the program ordinance expires 24 months after its own passage unless the Town Council votes to extend it or ends it sooner. Londonderry Ordinance 25-01 |
| Nottingham temporary moratorium on data centers | The opposite of an incentive. A proposed AI data center in a vacant Route 4 warehouse drew heavy opposition. It was withdrawn without prejudice in late May 2026. The Nottingham Planning Board then voted unanimously on July 1, 2026 to send a 12 month moratorium on data center construction to the voters. WMUR NHPR | The moratorium is a temporary ordinance under RSA 674:23 with a term of no more than one year. The planning board recommends it and the town's legislative body adopts it, which here means voter approval at a special town meeting. So it was not in force as of August 2, 2026. Nottingham Planning Board N.H. RSA 674:23 NHPR As of July 3, 2026 the select board had not yet set the date of that meeting. The developer behind the withdrawn proposal was reported to be weighing a second run at it. NHPR Foster's Daily Democrat | Pending. The Planning Board noticed and held the hearing on case 26-013-ZON, the temporary moratorium on data centers ordinance, on July 1, 2026 under RSA 674:23. It then voted 5 to 0 to recommend that the legislative body adopt the ordinance. Nottingham public hearing notice Nottingham moratorium ordinance as signed, with the Planning Board vote Nothing is in force yet. The ordinance takes effect only on adoption by the legislative body, and the select board sets the date of the special town meeting that would decide it. As of July 24, 2026 I found no town record setting that date. Nottingham Planning Board case 26-013-ZON NHPR |
New Jersey gives an AI data center no sales tax break on equipment and no break on the tax it pays for electricity, but the servers themselves sit outside the local property tax base because the state stopped taxing general business personal property in 1966. R.S. 54:4-1 The one AI data center incentive the state ever built was the Next New Jersey Program AI credit. It made a single 250 million dollar award to CoreWeave in November 2025 and stopped taking applications in June 2026. On June 30, 2026 both houses passed the End Data Center Tax Credits Act, which eliminates the remaining 250 million dollars of uncommitted AI data center credit. The bill went to the governor. NJEDA S4390 bill history New Jersey Globe The direction of travel here runs the other way from most states. On July 7, 2026 the governor signed a law making large AI data centers pay for the grid they need. P.L. 2026, c. 32
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Next New Jersey Program AI | Transferable credits against state tax liability, paid out over five years. The award is worth the lesser of 1) 0.1 percent of total capital investment multiplied by the number of new full time jobs, 2) 25 percent of total capital investment, or 3) 250 million dollars per business. P.L. 2024, c. 49 Governor Murphy signed the act as S3432 and A4558 on July 25, 2024. Rutgers New Jersey State Policy Lab The Legislature gave the program a 500 million dollar allocation carved out of unused Aspire and Emerge authority under the Economic Recovery Act of 2020. NJEDA Real Estate NJ Only one award was ever made. In November 2025 the NJEDA approved the full 250 million dollars for CoreWeave, at 50 million dollars a year. The award backs a roughly 1.8 billion dollar AI data center in Kenilworth. Real Estate NJ Inside Climate News | The applicant or one of its divisions has to be primarily engaged in the artificial intelligence industry or the large-scale artificial intelligence data center industry. The act measures that as more than 50 percent of employees doing AI related work, or more than 50 percent of revenue coming from it. Using AI to run your own business does not count. P.L. 2024, c. 49 On top of that the project needs 1) at least 100 million dollars of capital investment, 2) at least 100 new full time jobs paying at least 120 percent of the county median salary, 3) a collaborative relationship with a New Jersey research university or technology startup evidenced by price concessions or AI support services, 4) compliance with minimum environmental and sustainability standards, and 5) a ten year commitment to stay in the state. NJEDA P.L. 2024, c. 49 A tenant can apply, not just an owner, because the act defines a business as an applicant proposing to own or lease premises in a qualified business facility. N.J.S.A. 34:1B-395 Awards are performance based. The NJEDA can cut or revoke credits if the commitments are missed. The program rules at N.J.A.C. 19:31CC add one more limit. A business cannot claim this credit for the same capital investment or the same employees that already earned it another incentive award. Next New Jersey (AI) Program rules | Effectively closed. The NJEDA adopted rules in March 2025. It opened applications on June 24, 2025. It paused new applications in June 2026 with nothing pending. NJEDA NJ.com The agency has set no date for lifting the pause. Its application portal still carries the notice. Next NJ Program AI portal Applications were originally meant to run through March 2029. Then the Legislature ended it. Both houses passed the End Data Center Tax Credits Act on June 30, 2026. The Senate voted 35 to 4 and the Assembly 74 to 4. The bill would cut the uncommitted 250 million dollars out of the program. S4390 Senate Budget and Appropriations Committee statement S4390 fiscal estimate S4390 bill history New Jersey Globe The committee statement says the CoreWeave award is not affected. A5165 committee statement As of August 2, 2026 the bill history shows no action by the governor, so the bill sits on her desk. S4390 bill history |
| No data center sales and use tax exemption | None. Servers, cooling gear, and everything else an AI data center buys carry the full 6.625 percent state sales and use tax. N.J.S.A. 54:32B-3 The nearest thing to relief is the Urban Enterprise Zone purchase exemption. It is far too small to matter at this scale. A small qualified business buys exempt with Form UZ-5 or UZ-5-SB. It loses the exemption once its exempt purchases pass 100,000 dollars in a year. Division of Taxation A qualified business that is not a small qualified business pays the tax at the register and files for a refund instead. Motor vehicles, energy, and utility service are carved out. Division of Taxation UEZ overview NJ DCA UEZ sales tax benefits summary | To use the Urban Enterprise Zone route at all, 1) the facility has to sit inside a designated zone, 2) the operator has to be certified as a qualified business, and 3) the purchases have to be used exclusively in the zone. Division of Taxation N.J.S.A. 52:27H-79 There is no investment threshold or job threshold that unlocks an AI data center exemption, because no such exemption exists in New Jersey law. | No AI data center exemption exists as of August 2, 2026. New Jersey is not among the states that offer one. NCSL |
| Business personal property excluded from local property tax | Servers, racks, and most other business equipment sit outside the local property tax base statewide, because New Jersey stopped taxing general business personal property in 1966. New Jersey League of Municipalities NJ Assessor’s Handbook chapter VI The statute leaves personal property taxable only for machinery used to refine petroleum and for certain legacy local exchange telephone company property. It excludes intangible personal property outright. R.S. 54:4-1 Land and buildings stay fully taxable, so an AI data center still pays real property tax on its site and its shell. A bill pre-filed for the 2026 session, S1969, would amend the same statute to tax the business personal property of wireless telephone companies, including small cell network nodes. It adds nothing about AI data center equipment. S1969 introduced text | Nothing to apply for. It happens by operation of the statute. R.S. 54:4-1 The only line that matters is whether a given piece of equipment counts as personal property or as real property under the affixation test. That test generally leaves removable business machinery on the personal property side. | Active and long settled. R.S. 54:4-1 |
| Municipal five year abatements and long term PILOT exemptions | State law lets a municipality grant a five year phase in abatement on new construction, and a longer payment in lieu of taxes agreement on a redevelopment project. The long term payments commonly land near 10 to 15 percent of annual gross revenue, or up to 2 percent of project cost. EisnerAmper New Jersey TOD N.J.S.A. 40A:21-1 N.J.S.A. 40A:21-10 N.J.S.A. 40A:20-1 This is the one place an AI data center in New Jersey can still get a real tax break. It is negotiated between a municipality and a property developer. New Jersey TOD Vineland used the five year framework for the DataOne project in January 2026. Courier Post | Negotiated project by project with the municipality. A long term exemption generally needs a redevelopment area designation and a financial agreement with the town. A five year abatement follows a local ordinance adopting the statute. New Jersey TOD N.J.S.A. 40A:21-10 Winning one has gotten harder. A growing list of towns has banned AI data centers outright rather than bargain with them. Government Technology | Active, and the only live local incentive route in the state. EisnerAmper |
| No electricity or utility tax exemption for data centers | None. Electricity and natural gas, including the transportation and transmission service that comes with them, carry the 6.625 percent sales and use tax. N.J.S.A. 54:32B-3 The exempt list is short. Nothing on it was written with AI data centers in mind. It covers 1) utility corporations, 2) cogenerators operating or with permit applications filed on or before March 10, 1997 and only for the natural gas burned in cogeneration, 3) special contract customers the Board of Public Utilities approved before January 1, 1998, 4) federal agencies, 5) cemetery companies, 6) Amtrak, 7) New Jersey Transit, 8) the Delaware River Port Authority, 9) certified Urban Enterprise Zone businesses holding a UZ-6 certificate, and 10) Salem County manufacturing businesses qualified by the NJEDA holding an SC-6 certificate. Division of Taxation | An AI data center pays the tax unless it independently fits one of those narrow categories. An ordinary colocation or AI compute facility does not. N.J.S.A. 54:32B-3 The manufacturing exemption for equipment does not reach energy purchases, so there is no way in through that door either. Division of Taxation | No AI data center electricity exemption as of August 2, 2026. Division of Taxation |
| Data Center Fair Share Act | Not an incentive. This is a new cost. Governor Sherrill signed it on July 7, 2026 as P.L. 2026, c. 32. The state billed it as the first law of its kind in the country. A796 bill history Governor's office The Senate companion bill was S731. S731 introduced text It tells the Board of Public Utilities to issue an order within twelve months of the effective date, setting standards for how utilities serve large data center customers. The aim is that those customers carry the cost of the generation, transmission, distribution, and substation work built to serve them, instead of pushing it onto households and small businesses. A796 fourth reprint The standards also have to 1) push those customers toward bringing their own clean generation or storage, 2) protect other customers from stranded costs, and 3) curtail AI data centers before residential customers in a system emergency. A796 fourth reprint Utilities then have 180 days from that order to file for a rate class and tariff. | The act applies to large data centers as the board defines them. The board cannot set that minimum size above fifty megawatts. It also has to aggregate facilities that are 1) under common ownership or control, 2) on the same or contiguous sites, or 3) sharing substantial infrastructure, and treat them as one. A796 fourth reprint The financial guarantee survived into the enacted text. The board must require each utility to make a large data center customer guarantee it will pay for at least 85 percent of the electricity supply it requests for ten years. The customer also has to post deposits or security against the day it walks away. A796 fourth reprint Senate amendments on May 28 and June 18, 2026 lowered the trigger from the introduced hundred megawatt figure. They also struck the words limiting the tariff to a customer's new facilities, so existing sites are in scope too. A796 fourth reprint A796 bill history A796 Senate floor amendment statement Utility Dive | Signed July 7, 2026 and effective immediately, so the Board of Public Utilities order is due by July 2027. A796 fourth reprint New Jersey Monitor |
County and local programs
Burlington County
Pemberton Township was the first New Jersey municipality to ban AI data centers, adopting Ordinance 10-2026 on February 20, 2026 to prohibit their construction and operation. Ordinance 10-2026 Pinelands Alliance
Cumberland County
Vineland gave the DataOne project a five year property tax phase in, and local reporting calls it the largest AI data center under construction in the state. Courier Post WHYY 70and73.com
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Vineland five year tax exemption for the DataOne data center | Vineland City Council voted 5 to 0 on January 27, 2026 to adopt Ordinance 2026-3. The ordinance authorizes payment in lieu of taxes agreements for project tax exemption. It covers DataOne Vineland LLC and its facility at 3963 S. Lincoln Ave. Courier Post DataOne pays nothing on the new improvements in the first full year of operation. It then pays 20 percent of the regular tax in year two. From there the tax climbs 20 points a year until it reaches the full amount. The land keeps its assessed value of 5,618,100 dollars and stays fully taxable the whole time. The new improvements carry a tax valuation of 14,018,000 dollars. Courier Post The project has drawn steady local opposition since. Vineland Voice | Granted under New Jersey's five year abatement framework for newly completed construction, so the agreement reaches the improvement value and leaves the land alone. Courier Post EisnerAmper That framework is the Five-Year Exemption and Abatement Law. N.J.S.A. 40A:21-1 | Live. The exemption is approved. The AI data center was still under construction in March 2026. WHYY The five year phase in does not start until the first full year after the improvements are finished, so the clock has not begun. N.J.S.A. 40A:21-10 |
Gloucester County
Monroe Township adopted Ordinance O:20-2026 on April 22, 2026, stripping data centers out of the Hexa Builders redevelopment plan, and then adopted Ordinance O:25-2026 banning them township wide. The developer sued in Superior Court seeking more than 300 million dollars. Ordinance O:20-2026 Woodbury Warbler Mantua Township and East Greenwich Township adopted bans of their own in 2026. Mantua Township Government Technology No local incentive is on offer anywhere in the county.
Middlesex County
Sayreville introduced an 18 month moratorium on AI data center development on June 15, 2026 after a motion for a permanent ban deadlocked at the same meeting. MyCentralJersey Government Technology No local incentive is on offer.
Monmouth County
Red Bank voted unanimously to ban AI data centers in June 2026, and Asbury Park passed a resolution calling for a statewide and local pause. Neither town has a publicly known project. Government Technology
Somerset County
Warren Township approved an AI data center ban by a 5 to 0 council vote in June 2026 and asked the state for a statewide moratorium. Government Technology
Sussex County
Andover Township banned AI data centers outright on May 28, 2026, after weeks of hearings that ended with police removing a speaker, and the ordinance designates data centers a prohibited use in every zone. New Jersey Herald Sparta Independent Vernon Township followed on June 22, 2026 with Ordinance 26-11, adopted unanimously and written to define and prohibit data centers while leaving telecommunications and utility infrastructure alone. Advertiser News North There is no incentive to be had in either town.
Union County
Kenilworth hosts CoreWeave's roughly 1.8 billion dollar AI data center, which won the state's first and only 250 million dollar Next New Jersey Program AI award and is now the focus of loud local opposition. Real Estate NJ Government Technology
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| CoreWeave Kenilworth project, Next New Jersey AI award | The NJEDA approved up to 250 million dollars in state tax credits in November 2025 for CoreWeave's 392,600 square foot AI data center. The site is the former Merck campus along Galloping Hill Road in the borough of Kenilworth, now called the Northeast Science and Technology Center. Real Estate NJ Inside Climate News The award pays 50 million dollars a year for five years. It is a state credit and not a borough one. No Kenilworth abatement has surfaced. The project puts more than 108,000 square feet of new construction alongside a converted existing building. It is expected to draw up to 250 megawatts once it is fully running. It is projected to create 143 permanent jobs. Real Estate NJ Construction started in September 2025. CoreWeave expects to operate in early 2027. | CoreWeave committed roughly 1.8 billion dollars of capital investment, and 143 new full time jobs paying above 120 percent of the county median salary. It also made a ten year commitment to stay in New Jersey. Real Estate NJ The credits are performance based, so the NJEDA can reduce or revoke them if the company falls short. P.L. 2024, c. 49 | Live. The NJEDA paused the program in June 2026 with no applications pending. CoreWeave is still the only company that ever received an award. NJ.com The bill the Legislature passed to cancel the rest of the money leaves an award already made alone, so the five year payout stands. A5165 committee statement |
New Mexico has no state tax incentive written for AI data centers. The National Conference of State Legislatures fifty state table lists New Mexico flatly as no incentive. NCSL fifty state table Bills to create one died in 2018, 2019 and 2021. House Bill 324 of 2018 House Bill 596 of 2019 Senate Bill 26 of 2021 The real deals happen county by county through industrial revenue bonds that erase property tax for up to 30 years, like the Project Jupiter package in Doña Ana County worth up to 165 billion dollars. Doña Ana County Project Jupiter page
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Industrial revenue bonds for property tax and gross receipts tax relief | A county or municipality issues bonds and takes bare legal title to the project. It then leases the project back to the company. Legislative industrial revenue bond summary The authority comes from two parallel statutes. The Industrial Revenue Bond Act at NMSA 1978 Sections 3-32-1 through 3-32-16 covers municipalities. The County Industrial Revenue Bond Act at NMSA 1978 Sections 4-59-1 through 4-59-16 covers counties. Legislative Finance Committee Policy Spotlight on industrial revenue bonds Section 7-36-3 exempts the lessee's interest in an industrial revenue bond lease from property tax for as long as the bonds are outstanding. The statutory maximum lease term is 30 years. The company also buys qualifying equipment and materials as agent for the government issuer, using Type 9 nontaxable transaction certificates. No gross receipts tax and no compensating tax is paid on those purchases. Companies make negotiated payments in lieu of taxes instead. Doña Ana County Project Jupiter page When the bonds are repaid the property goes back to the company and back on the tax rolls. | Everything is negotiated deal by deal. Each bond needs a majority vote of the county commission or city council. It also needs a lease that sets the payments in lieu of taxes and any job commitments. There is no statewide minimum investment, job count or wage floor. Legislative Finance Committee Policy Spotlight on industrial revenue bonds There is also no automatic path for colocation tenants. They get relief only if the bond documents cover them. For most projects no other taxing entity has to approve and none can veto. The county must still mail notice to the assessor and every property taxing entity at least 30 days before the ordinance is considered. Only electric generation, storage and transmission projects trigger a statutory split of the payments with school districts. Doña Ana County Project Jupiter page Legislative industrial revenue bond summary | Active, and narrowed slightly by House Bill 165 of 2026. The governor signed it. The bill makes the lessee rather than the government titleholder responsible for special assessments under the Improvement Special Assessment Act. New Mexico Municipal League 2026 session report |
| Local Economic Development Act assistance including gross receipts tax rebates | The Local Economic Development Act lets state and local governments give qualifying economic base projects 1) discretionary cash 2) land 3) infrastructure help and 4) shares of tax revenue. New Mexico rules name Section 5-10-1 NMSA 1978 as the governing legislation for the program. NMAC 2.94.1 Doña Ana County used it twice for Project Jupiter. Ordinance No. 368-2025 shares gross receipts tax revenue. Ordinance No. 369-2025 addresses building permit fees. Doña Ana County Project Jupiter page In Valencia County the same tool went to the Meta affiliated campus twice over. The county adopted Ordinance 2026-01 for Greater Kudu LLC. The Village of Los Lunas followed with Ordinance 486 on March 12, 2026. That ordinance dedicates half of the village gross receipts and compensating tax increments generated by taxable construction spending on the project. Valencia County Ordinance 2026-01 Village of Los Lunas March 12, 2026 minutes Los Lunas Ordinance 486 text in the March 12, 2026 agenda packet | The company must be a qualifying entity under the act. It must also sign a project participation agreement with the sponsoring government. Awards are discretionary and come with clawback terms. NMAC 2.94.1 AI data centers plainly qualify. Two counties have now used the tool for them. Los Lunas Ordinance 486 packet reciting the Valencia County dedication | Active, and used for AI data centers in both Doña Ana and Valencia counties as of July 2026. Doña Ana County Project Jupiter page Albuquerque Business First |
| High Wage Jobs Tax Credit | A refundable credit equal to eight and one half percent of wages for each new high wage job. The credit is capped at 12,750 dollars per job per 12 month qualifying period. An employer can claim the initial period plus three consecutive periods. That is up to four years per job. The credit applies against the modified combined tax liability. That liability covers gross receipts, compensating and withholding taxes. Any excess is refunded. House Bill 145 of 2026 bill text The credit itself sits at Section 7-9G-1 NMSA 1978. That statute sets both the credit and the test for which jobs qualify. NMSA 1978 Section 7-9G-1 | The job must be occupied at least 44 weeks of the qualifying period by an eligible employee. Wages must be at least 60,000 dollars if the job is performed or based in or within 10 miles of a municipality of 60,000 or more people, or in a class H county. Wages must be at least 40,000 dollars elsewhere. The statute only reaches jobs created before July 1, 2036. House Bill 145 of 2026 bill text Senate Bill 151 of 2026 as enacted | Active. Senate Bill 151 of 2026, the omnibus tax package, moved the cutoff to jobs created before July 1, 2036. The governor signed it in March 2026. Senate Bill 151 of 2026 as enacted Governor signs the 2026 tax package House Bill 145 of 2026 would have made the same change on its own. It died in the House. House Bill 145 status |
| Job Training Incentive Program | The state reimburses a company for 50 to 90 percent of the wages of newly created jobs during a training period. For an expanding or relocating business that period runs up to six months. New Mexico Economic Development Department AI data center operators do use it. STACK Infrastructure is the developer behind Project Jupiter. In 2026 it was approved for up to 3.06 million dollars. The award covers 95 trainees in Santa Teresa at an average wage of 48 dollars an hour. Organ Mountain News | Positions must be newly created, year round and full time. Trainees must be new hires who have lived in New Mexico for at least a year. Awards are made by a state board that meets monthly. That makes this an application program and not an entitlement. New Mexico Economic Development Department JTIP application process | Active, and awarded to an AI data center developer in 2026. Organ Mountain News |
| Advanced Grid Technology Plans law enabling data center microgrids | This is not a tax break. The 2025 law passed the House 52 to 8 and the Senate 37 to 4. It was signed April 8, 2025. House Bill 93 of 2025 County officials, project opponents and reporters all describe it as the grid measure that let large AI data center projects build their own onsite generation instead of drawing from the utility grid. The developers plan roughly 1 gigawatt of onsite generation. El Paso Matters Oracle cites the microgrid as the reason Project Jupiter will not affect local ratepayers. Oracle Critics call the same feature a microgrid loophole around the Energy Transition Act. Source New Mexico | The project supplies its own generation onsite. It must still obtain air quality and other permits. Project Jupiter committed to comply with the Energy Transition Act. In April 2026 it replaced its gas turbine and diesel generator plan with fuel cells. Source New Mexico | Enacted in 2025 and still on the books. Senate Bill 235, the Microgrid Oversight Act, was a 2026 attempt to put AI data center microgrids under Public Regulation Commission oversight. It passed the Senate on February 14, 2026. It died in the House at adjournment. Senate Bill 235 of 2026 |
County and local programs
Bernalillo County
The Albuquerque area has no AI data center industrial revenue bond yet, and in February 2026 the county set conditions any future one must meet. Bernalillo County Albuquerque Journal
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Data center guardrails resolution, also called Holding Data Center Projects Accountable in Our Community | This is a gatekeeping policy rather than a new benefit. The county commission passed Resolution AR 2026-22 by 4 to 1 on February 10, 2026. The Greater Albuquerque Chamber of Commerce opposed it. Bernalillo County Greater Albuquerque Chamber of Commerce It spells out what an AI data center must offer before the county will grant the standard industrial revenue bond property tax abatement. That abatement remains available case by case. A separate resolution on community benefit priorities sponsored by a different commissioner was deferred the same night. Greater Albuquerque Chamber of Commerce | A project seeking a county industrial revenue bond has to clear six conditions. On the workforce side it has to 1) enter a project labor agreement for construction hiring, 2) run a registered apprenticeship program, and 3) prioritize in state permanent hiring. On the money and resources side it has to 4) pay every permanent position at or above 120 percent of area median salary, 5) fully offset its water use under a reclamation and reuse plan, and 6) pay a minimum payment in lieu of taxes. The resolution text puts numbers on two of those. The minimum payment in lieu of taxes is 30 percent of the county mill rate. The renewable deadline depends on which route the project takes. A private microgrid has to supply 100 percent of the facility's energy and be deployed at or before operations commence. A grid connection under the Energy Transition Act gets an individualized contract that has to reach 100 percent renewable supply within two years of initial operations. Resolution AR 2026-22 KOAT The chamber's summary describes the energy term as 100 percent renewable at commencement. That is right for the microgrid route and not for the grid route. Greater Albuquerque Chamber of Commerce Albuquerque Journal | Adopted February 10, 2026 and in effect now. The county says the guidelines apply whenever an AI data center project asks for an economic development incentive such as an industrial revenue bond. Bernalillo County |
Colfax County
The city of Raton signed a memorandum of understanding with an AI data center developer whose first phase would move into a former Kmart, and then postponed a decision on adopting its own moratorium in June 2026. Source New Mexico Santa Fe New Mexican No incentive package has been approved.
Doña Ana County
Home of Project Jupiter, an AI data center campus in Santa Teresa worth up to 165 billion dollars that won the largest industrial revenue bond package on record in September 2025. El Paso Matters Albuquerque Journal Oracle confirmed in January 2026 that it is the tenant. Oracle
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Project Jupiter industrial revenue bonds and payments in lieu of taxes, Santa Teresa | County commissioners voted 4 to 1 on September 19, 2025 to adopt Ordinance No. 367-2025. The ordinance authorizes industrial revenue bonds of up to 165 billion dollars for a four building AI campus. The campus is developed by BorderPlex Digital Assets and Stack Infrastructure. El Paso Matters The county bond counsel broke the number into 1) 15 billion dollars for the microgrid generation and storage facility 2) 25 billion dollars for buildings and infrastructure and 3) 125 billion dollars for the equipment inside them. Santa Fe New Mexican The company commits to a minimum initial investment of 50 billion dollars within five years. It commits up to 165 billion dollars over the 30 year financing term. The county takes bare legal title to the land and equipment and leases it back for 30 years. No property tax is paid during the term. No gross receipts or compensating tax is paid on eligible equipment bought under the bonds. Doña Ana County Project Jupiter page In exchange the developer pays the county 360 million dollars over 30 years. Oracle describes these as direct payments to improve schools, infrastructure and local services. Oracle Ordinance No. 368-2025 gives the project a share of gross receipts tax revenue under the Local Economic Development Act. Ordinance No. 369-2025 addresses building permit fees. The developer also committed 50 million dollars for county water and wastewater upgrades. It committed 6.9 million dollars for community investments. Of that 6.9 million, 1.5 million dollars was paid on January 6, 2026. Bond series 2025A, 2025B and 2025C are executed and recorded. Doña Ana County news release The county page describes a first phase of about 400 acres plus the microgrid site. I could not find a county document confirming the roughly 1,400 acre campus figure that news coverage uses. So treat the total footprint as reported rather than official. Doña Ana County Project Jupiter page | The lease makes the memorandum of understanding commitments enforceable. Developers committed to 1) about 2,500 construction jobs through 2028 2) a minimum of 750 full time and 50 part time permanent jobs at average wages the county estimates at 75,000 to 100,000 dollars 3) an onsite microgrid of roughly 1 gigawatt instead of utility grid power 4) compliance with the Energy Transition Act and 5) capped water use with a closed loop cooling system. Standard safeguards include closure clawbacks and job targets backed by repayment or higher payments in lieu of taxes. After 30 years the property returns to the company and the full tax rolls. Doña Ana County Project Jupiter page El Paso Matters Good Jobs First The deal is being litigated. A nonprofit and two residents sued in October 2025. They argue the county approved the bonds on an incomplete application. The case has been allowed to proceed. Courthouse News Data Center Dynamics | Adopted September 19, 2025 and in effect now. The next round of community payments is due by December 31, 2026. Doña Ana County Project Jupiter page The court challenge has not undone it. The judge has ruled only that the case may go forward and has not reached the merits. Organ Mountain News |
Lea County
An oil patch county courting a planned 7 gigawatt AI campus, with a February 2026 resolution that ties any AI data center incentives to industrial revenue bond deals meeting county requirements. Hobbs News Sun Data Center Dynamics
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Data center project requirements and industrial revenue bond incentive policy, Resolution No. 26-FEB-057R | The commission unanimously approved the resolution in an open meeting in Lovington on February 26, 2026. Resolution No. 26-FEB-057R Hobbs News Sun It approves AI data center project requirements for the county. It also states that economic development incentives shall be considered for projects associated with an industrial revenue bond. The stated premise is that taxpayer funded incentives should reflect a strong net public benefit. It positions the county to negotiate a bond financed property tax abatement for the planned New Era Energy and Digital campus. That campus covers about 3,500 acres under a land option announced in November 2025. It is planned for up to 7 gigawatts of AI capacity powered by natural gas and nuclear energy. Data Center Dynamics New Era Energy and Digital New Mexico project page The county manager described it as the first of what could become eight or 10 regulation revisions. Hobbs News Sun | Incentives run through the county industrial revenue bond process and the project requirements set in the resolution. The county has posted the resolution only as a scanned document that will not render in full. So the item by item requirement list is not readable as of August 2, 2026. What is quoted above is what the readable text and the county resolution index show. 2026 Lea County resolutions index No AI data center industrial revenue bond had been publicly approved in Lea County as of August 2, 2026. | Adopted February 26, 2026 and in effect now. The county still posts it in its 2026 resolution index. 2026 Lea County resolutions index |
Santa Fe County
No incentive here. Commissioners adopted an 18 month moratorium on AI data center development permits on June 30, 2026, before any developer had pitched a project. Source New Mexico
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Data center moratorium, Ordinance No. 2026-06 | None. This is a pause, not an incentive. The moratorium on issuing development approvals and development permits for data centers took effect immediately. It runs 18 months while county staff write rules on water, energy, noise and related impacts. The Board may extend that period, so do not plan around the 18 months as a hard stop. Ordinance No. 2026-06 | Commissioners amended the draft to lower the trigger from 100 megawatts to one megawatt or more. That way a developer could not sidestep it with a 99 megawatt facility. The vote was unanimous. There were no pending AI data center proposals in the county at the time. Source New Mexico | Live now. Adopted June 30, 2026 and effective on adoption. This 18 month pause runs into late 2027. Source New Mexico |
Socorro County
No incentive here either. Commissioners unanimously adopted a one year moratorium on AI data centers on June 9, 2026 after months of opposition to a proposed data center and solar array on about 10,000 acres. Source New Mexico
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| One year data center moratorium | None. The moratorium prohibits data center developments on unincorporated county land for one year. It also starts the process of forming an advisory committee of experts and residents to recommend regulations. Source New Mexico | The county has no zoning regulations at all. That is part of why the moratorium was the available tool. New Mexico Tech is the proposed partner. In June 2026 it said the project was halted for the time being because the university does not own enough contiguous land. Santa Fe New Mexican | Live now. Adopted June 9, 2026 and set to run one year. So the pause holds into June 2027. Source New Mexico El Defensor Chieftain |
Valencia County
The Village of Los Lunas has backed Meta's data center campus with industrial revenue bonds since 2016 and authorized a new multibillion dollar round in 2025 for AI expansion. Valencia County News Bulletin Albuquerque Business First 2016 Valencia County and the village both added Local Economic Development Act help in 2026. Village of Los Lunas March 12, 2026 minutes Los Lunas Ordinance 486 agenda packet reciting the March 4, 2026 county ordinance
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Village of Los Lunas industrial revenue bonds for the Meta data center, Greater Kudu LLC | The village council declared its intent in December 2024 to issue up to six series of industrial revenue bonds for Greater Kudu LLC. Each series would not exceed 7.5 billion dollars in aggregate principal amount. Greater Kudu LLC is a Meta subsidiary. The bonds would fund two new data center buildings for AI hardware. The council approved the bond ordinance on February 13, 2025. Valencia County News Bulletin That six series structure is how Los Lunas has always done this. The original 2016 package was six series of 5 billion dollars each. The trade press reported that as a 30 billion dollar deal. So the 2025 round works out to 45 billion dollars on the same math. Albuquerque Business First The structure abates property taxes while the village holds title. The bonds are repaid through Meta's own lease payments. No debt falls on the village. Meta bought an adjacent parcel of about 475 acres in December 2025. Reporting treats that as room for further expansion. Data Center Dynamics Trade coverage calls the 2025 round the third series of industrial revenue bonds for Greater Kudu LLC. It reports the build behind it at about 800 million dollars over roughly three years of construction. Data Center Dynamics | Job requirements are written into the lease. A companion water agreement caps the campus at 500 acre feet per year, about 163 million gallons. It sets a worst case ceiling of 3 million gallons per day for up to five days. It gives the campus no priority over other industrial users in a shortage. Valencia County News Bulletin | Adopted February 13, 2025 and in effect. A July 2026 Legislative Finance Committee review reports that Los Lunas went on to issue 7.5 billion dollars of the authorized bonds to Meta. So this is a live abatement and not just an authorization. Legislative Finance Committee Policy Spotlight on industrial revenue bonds |
| Valencia County Local Economic Development Act project for Greater Kudu LLC | County commissioners adopted Ordinance 2026-01. It authorizes a Local Economic Development Act project. The project pledges gross receipts tax revenue to support the expansion of the Meta affiliated AI data center campus in Los Lunas. The Village of Los Lunas then adopted Ordinance 486 on March 12, 2026. It dedicates half of the village gross receipts and compensating tax increments generated by taxable construction spending on the project. The money goes to public infrastructure for the site. Valencia County Ordinance 2026-01 Village of Los Lunas March 12, 2026 minutes Los Lunas Ordinance 486 text in the March 12, 2026 agenda packet Albuquerque Business First The county pledge is half of the state gross receipts and compensating tax generated by the qualifying construction work. The Village of Los Lunas acts as fiscal agent for it. Valencia County Ordinance 2026-01 Los Lunas Ordinance 486 text in the March 12, 2026 agenda packet This sits on top of the village bonds rather than replacing them. | The company must sign a project participation agreement with the county under the Local Economic Development Act. The village ordinance passed 4 to 0. A state Economic Development Department representative spoke in support. The pledge is tied to construction period tax increments rather than to a fixed dollar cap. Village of Los Lunas March 12, 2026 minutes | In effect, though the county does not publish an adoption date alongside it. Valencia County still lists Ordinance 2026-01 as a current county ordinance. No repeal or sunset is posted. Valencia County ordinance index |
New York has no modern AI data center program. What it has is a sales tax exemption for internet data centers that the legislature wrote in 2000, and that dial up era statute is now the main break large AI projects reach for. N.Y. Tax Law § 1115(a)(37) TSB-M-00(7)S On July 14, 2026 Governor Hochul signed Executive Order No. 62, the first statewide freeze in the country on state environmental permits for AI data centers of fifty megawatts or more. N.Y. Exec. Order No. 62 Governor's office In the same announcement she said she will work with the legislature to repeal the sales tax exemption. Governor's office Investigative Post
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Internet data center sales and use tax exemption | An operator of an internet data center pays no state or local sales and use tax on machinery, equipment, other tangible personal property, and related services used at the facility. Contractors, subcontractors, and repairmen can buy the same qualifying property and services tax free for the project. Neither the statute nor the Tax Department bulletin limits the break to the first buildout, so replacement servers can qualify too. That is what makes it valuable to an AI data center that swaps hardware every few years. N.Y. Tax Law § 1115(a)(37), (y) TSB-M-00(7)S N.Y. Tax Law § 1115 full text | The buyer has to run a New York facility that was designed and built as a high security data center. It also has to provide internet website services for sale. In practice that means web hosting. A business that mainly sells its own internet access service does not qualify. There is no minimum investment, no job or wage test, and no sunset date. Operators claim the break with Form ST-121.5. Contractors use Form ST-120.1. Tax Department bulletin TSB-M-00(7)S | Active since 2000, and now openly contested. Whether an AI compute campus counts as an internet data center has never been litigated. The break came out of the dot com bubble, when Governor Pataki pushed it to pull in companies selling internet website services. In 2026 the state tax department estimated its cost at 12 million dollars. Government Technology TeraWulf has claimed the exemption at its Lake Mariner site and paid no sales tax. In late May 2026 the Niagara County Legislature authorized outside counsel to investigate and to sue under the New York False Claims Act to collect. Niagara County investigation Buffalo Business First Governor Hochul said on July 14, 2026 that she will work with the legislature to repeal the break for large AI data centers. Governor's office Investigative Post The two repeal bills already filed have not moved. S9288 has sat in the Senate Budget and Revenue Committee since February 25, 2026. Its Assembly twin A10216 has sat in Ways and Means since February 12, 2026. S9288 A10216 |
| Executive Order No. 62 statewide data center permitting moratorium | This is a restriction and not an incentive. It is the single most important fact about building an AI data center in New York right now. The Department of Environmental Conservation has to hold in abeyance every application for a discretionary permit, approval, or license for the construction or expansion of a covered data center. That abeyance runs until the Department of Public Service submits its final Generic Environmental Impact Statement and findings statement. N.Y. Exec. Order No. 62 The order took effect on July 14, 2026. The Governor's office describes the pause as lasting up to one year. Governor's office CNBC | The pause reaches a facility that consumes or can consume fifty megawatts or more and that fits the hardware and service profile the order describes. That profile means uninterruptible power supply systems, high density cooling, or cybersecurity systems, plus the provision of storage, cloud computing, or content delivery. It does not reach 1) smaller facilities, 2) applications DEC had already determined to be complete before July 14, 2026, or 3) a facility used primarily for manufacturing, research, education, or medical care. That research and education carve out names the Empire AI consortium. Because the abeyance is written to cover discretionary approvals only, a purely ministerial DEC action sits outside it. The order also leaves local permits and zoning alone. N.Y. Exec. Order No. 62 Read the text closely and the order sets no deadline of any kind for the Generic Environmental Impact Statement. That leaves the real length of the pause open ended. The only clocks in it run to other things. There are 1) sixty days for Empire State Development to post a Community Investment Framework, 2) sixty days for a DPS Data Center Interconnection Working Group, 3) ninety days for a DPS report on how transmission owners study large loads, and 4) twelve months for a DEC water withdrawal report. N.Y. Exec. Order No. 62 | Active and in effect since July 14, 2026. N.Y. Exec. Order No. 62 Hodgson Russ Environmental Council of the States |
| Responsible Data Center Development Act, passed but not signed | Also a restriction. The bill would bar the Department of Environmental Conservation for one year from issuing any permit, certificate, registration, license, or other approval to a large data center. It defines a large data center as one with peak demand of twenty megawatts or more. It would then 1) require an in person public hearing in a host community at least three months before any such approval, 2) order DEC to prepare an environmental impact report covering land, water, electricity, pollution, and public subsidies with five regional comment periods, 3) direct the Public Service Commission to create separate electric and water rate classes for AI data centers above twenty megawatts so those facilities pay their own interconnection and infrastructure costs, 4) set energy consumption efficiency goals including waste heat recycling, and 5) create a host community benefits program. S.10642 bill text | The reach is wider than the executive order in two ways. The permitting freeze starts at twenty megawatts rather than fifty. The operating conditions start lower still. A data center with peak load of five megawatts or more would have to show third party verification that renewable energy systems supply a set share of its electricity. That share is at least one third from 2030 through 2034, at least two thirds from 2035 through 2039, and at least ninety percent in 2040 and after. It would also have to draw as much of its energy from on site renewable generation as is technologically, environmentally, and practically feasible. Construction of any facility at five megawatts or more would carry prevailing wage under a new Labor Law § 224-g. It would also carry a Buy American rule requiring iron and steel made in whole or substantial part in the United States. A facility majority owned or controlled by a public research institution and used for research is carved out. The freeze would not touch renewals or projects that had already started construction. The bill takes effect immediately if signed. S.10642 bill text | Passed both houses on June 4, 2026. The Senate substituted the Assembly bill and passed it 43 to 17. One member was absent and two were excused. A11560 floor vote As of August 2, 2026 the bill page still shows the measure as passed Senate and Assembly with no delivery to the Governor. So the veto clock has not started. A11560 status Hochul acted through Executive Order No. 62 instead. Outside firms describe it as the product of talks with the legislature after passage. Phillips Lytle on Executive Order 62 Phillips Lytle Greenberg Traurig Hodgson Russ Whether she signs or vetoes is a decision she has not made. Nobody outside her office can tell you which way it goes. |
| Excelsior Jobs Program | Five fully refundable tax credits claimed over a benefit period of up to ten years. The jobs credit pays up to 6.85 percent of wages per net new job. The investment credit pays 2 percent of qualified investments. A research and development credit, a real property tax credit, and a child care credit round out the package. Empire State Development New York City business portal | The applicant has to operate predominantly in one of the strategic industries the statute lists. It also has to hit that industry's job number. A financial services data center or a financial services back office operation qualifies at twenty five net new jobs. A business creating or expanding back office operations qualifies at the same twenty five. N.Y. Econ. Dev. Law § 353 A commercial AI data center is not itself a listed strategic industry. The realistic way in is the regionally significant project route. The statute opens that route to other businesses creating one hundred fifty or more net new jobs together with significant capital investment. It defines significant capital investment as three million dollars for a financial services firm or back office operation and three million dollars for other businesses. N.Y. Econ. Dev. Law § 352 That job floor is the problem. The AI campuses New York is actually arguing about promise jobs in the low hundreds at best and often far fewer. Yahoo's Lockport expansion did draw a state jobs credit tied to the jobs it created. Investigative Post The program itself was enacted on June 23, 2010. It replaced the old Empire Zones Program. Ch. 59, L. 2010 Empire State Development's own fact sheet describes the route in. It starts with a consolidated funding application to the regional office. Next comes a formal agreement setting the job and investment numbers for each year. Then comes a certificate the business needs before it can claim any credit. Empire State Development Excelsior fact sheet | Active. Empire State Development |
| NYPA low cost power, ReCharge NY and Niagara hydropower | The New York Power Authority allocates 910 megawatts of below market power through ReCharge NY. That power is split between NYPA hydroelectric power and market power NYPA buys. NYPA ReCharge NY N.Y. Econ. Dev. Law § 188-a Bond Schoeneck and King memo on ReCharge NY Separate low cost Niagara hydropower is available to businesses within thirty miles of the Niagara Power Project or in Chautauqua County. N.Y. Pub. Auth. Law § 1005 Data centers have won allocations, including discounted hydropower for Yahoo's Lockport facility starting with a 2009 award. Investigative Post | Competitive application to NYPA, scored on 1) how much electricity costs matter to the business, 2) new capital investment in New York, and 3) jobs created or retained. Power flows under contract with NYPA. An allocation can sit alongside a local industrial development agency tax deal. Yahoo's Lockport data center had both. NYPA ReCharge NY N.Y. Econ. Dev. Law § 188-a Investigative Post | Active, and under political pressure. Senator Rachel May's stop subsidizing data centers act would 1) prohibit NYPA from allocating economic development power to AI data centers, 2) cap industrial development agency assistance, and 3) claw that assistance back if job levels are not held for five years after completion. It was amended twice in 2026, most recently to print number 9182b on May 22. It is still sitting in the Senate Energy and Telecommunications Committee. S9182 Investigative Post |
| No personal property tax on servers and equipment | New York taxes only real property, so servers, racks, and other movable equipment carry no annual property tax. Tax Department on property taxes The statute says personal property, whether tangible or intangible, shall not be liable to ad valorem taxation. N.Y. Real Prop. Tax Law § 300 Movable machinery used for trade by an ordinary business corporation is also excluded from the definition of real property. Real Property Defined, ORPTS | Automatic statewide with nothing to apply for. Items permanently built into the facility such as power generating apparatus, boilers, and ventilating apparatus can still be taxed as real property. For an AI data center that is not a small carve out. Real Property Defined, ORPTS Local industrial development agencies can abate the real property side through a negotiated PILOT. | Active. Tax Department |
| Business investment property tax exemption | A partial exemption from real property taxes on the increase in assessed value that new construction or improvement creates. It starts at 50 percent of the increase in the first year and falls by 5 points a year across ten years. This is a general commercial and industrial exemption and not an AI data center program. N.Y. Real Prop. Tax Law § 485-b ORPTS assessor's manual FindLaw, N.Y. Real Prop. Tax Law § 485-b | Application goes to the local assessor within one year of completion. The project has to cost more than ten thousand dollars, or whatever higher floor up to fifty thousand dollars the locality sets. State law reaches property used primarily for buying, selling, storing, or developing goods or services, for manufacturing or assembly, or for processing raw materials. Every county, city, town, village, and school district can cut the percentage or drop the exemption entirely by local law or resolution. The Buffalo, Rochester, Syracuse, and Yonkers city school districts are the exception. It cannot be layered on the same improvement as another property tax exemption. So a project taking an industrial development agency PILOT normally cannot take this too. Whether an AI data center fits those use categories is a call the local assessor makes. As of August 2, 2026 the state assessor's manual gives no guidance on AI data centers one way or the other. ORPTS assessor's manual | Active. ORPTS assessor's manual |
| Empire AI consortium computing center | Direct state spending rather than a tax break. Empire AI is backed by more than 500 million dollars in public and private funding, including up to 340 million dollars in state capital funding. It is housed at the University at Buffalo. Governor's office FY 2026 enacted budget Governor's office on Empire AI Beta Empire State Development approved a 40 million dollar tranche in June 2025 to launch the Empire AI Beta supercomputer. The Beta is an Nvidia DGX SuperPOD with GB200 systems that the state says is eleven times more powerful than the Alpha machine. Governor's office University at Buffalo | Open only to the public and private university consortium, and only for research computing. The consortium now has ten member institutions. A private AI data center operator cannot apply. It is still worth knowing about. It is the state's flagship AI infrastructure spend. Executive Order No. 62 also names the Empire AI consortium in its research and education carve out. Governor's office Governor's office on Empire AI Beta N.Y. Exec. Order No. 62 | Active since 2024. It expanded in the FY 2026 enacted budget and again with the June 2025 Beta award. FY 2026 enacted budget Governor's office |
County and local programs
Genesee County
The county industrial development agency has proposed about 1.46 billion dollars in tax breaks for a Stream AI data center campus. The campus would sit at the STAMP park in the town of Alabama. That package is one of the largest subsidies per job ever floated for an AI data center anywhere in the country. Investigative Post The board asked staff on July 2, 2026 to prepare final resolutions, and the published calendar puts the next board meeting on August 6, 2026, so nothing has been voted on. Video News Service GCEDC meeting calendar The project is now caught between Executive Order No. 62, a DEC letter refusing stormwater coverage, and a lawsuit challenging the zoning agreement the whole park rests on. Investigative Post
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| STAMP incentive package for Stream US Data Centers, Project Double Reed | The Genesee County Economic Development Center has proposed roughly 1.46 billion dollars in abatements for a three building, 2.2 million square foot, 500 megawatt campus. Investigative Post breaks the package into 1) about 716 million dollars in state sales tax abatements, 2) an equal amount in local sales tax abatements, and 3) a mortgage recording tax break of about 31 million dollars. Investigative Post Investigative Post The original application dated January 30, 2026 covered an 11.181 billion dollar investment with an incentive amount of 774,004,877 dollars. That was reported at the time as roughly 801 million dollars in total breaks. GCEDC project summary Investigative Post Stream would also pay about 285 million dollars over thirty years in PILOT and host community payments to the county, the town of Alabama, and the Oakfield Alabama school district. Orleans Hub | Stream promised 125 permanent jobs at what is now a 19.46 billion dollar project. That works out to about 11.7 million dollars per permanent job. It also promised roughly 6,000 construction workers over five years. Investigative Post Orleans Hub Investigative Post on the STAMP subsidy bill A public hearing was held in March 2026. The board requested a final SEQR consistency resolution and the financial incentive resolutions at its July 2, 2026 meeting for a vote at a future meeting. Video News Service Stream had not applied for low cost NYPA power as of late April 2026. Investigative Post Three things now stand in the way. Executive Order No. 62 appears to halt the project. The agency's lawyers said on July 14, 2026 that they were still reviewing the language. A DEC letter dated July 10, 2026 tells the agency the department will not consider the campus eligible for coverage under the general stormwater permit until it reviews an updated wetland delineation report. That means no DEC approval had been treated as complete before the executive order landed. And on July 13, 2026 the Tonawanda Seneca Nation, the Sierra Club, and a town resident sued in State Supreme Court in Genesee County to void the 2012 incentive zoning agreement that created the STAMP technology district. Investigative Post | Proposed and not approved. The board has not voted the package through. As of July 24, 2026 the agency's posted 2026 calendar showed no board meeting between July 2 and the next regular one on August 6. GCEDC 2026 meeting materials The Governor said on July 20, 2026 that her one year permitting pause covers this project. That holds it up for now. Investigative Post |
Niagara County
This county is home to the Lockport data center that Yahoo built on town industrial development agency tax breaks and cheap state hydropower. Investigative Post It is also home to TeraWulf's Lake Mariner campus in the town of Somerset. That campus runs to 410 acres and is built for as much as 750 megawatts of power capacity. It is now the subject of a county sales tax fight. Niagara County investigation
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Town of Lockport IDA package for the Yahoo data center | The Town of Lockport Industrial Development Agency granted PILOT property tax reductions and sales tax exemptions across two phases. Yahoo pays no property tax on the new development for the first ten years. The sales tax exemption runs twenty years and covers replacement equipment. So phase two carried no sales tax on up to 2.5 billion dollars of equipment, for a maximum saving of 200 million dollars. Add the agency breaks, discounted NYPA hydropower, a state tax credit, and a federal grant. Investigative Post put the total at up to 478 million dollars. Investigative Post | Negotiated case by case with job commitments. Phase one created 75 jobs and phase two created 115. The center opened in 2010. That puts the subsidy at about 2.4 million dollars per job. Investigative Post Senate press release Investigative Post H5 Data Centers bought the 409,000 square foot Lockport complex for 49 million dollars in January 2025. Yahoo stayed on as operator for at least five years. BTPM | Active. The agency reported all three Yahoo projects as still open in fiscal year 2023. That was the last year it filed with the state. The planned end years are 2030 for the project approved in 2009, 2033 for the one approved in 2013, and 2034 for the one approved in 2019. Authorities Budget Office IDA project data |
| Town of Lockport IDA standing PILOT and sales tax program | The Town of Lockport Industrial Development Agency packages PILOT agreements for businesses locating or expanding in the town. Those agreements cut Niagara County and school district property taxes and add capped sales tax exemptions. The town levies no town property tax of its own. Lockport economic development | Project by project application to the agency. The agency sets a cap on total sales tax savings and the window in which the exemption can be used. The agency partners with the Niagara County Center for Economic Development on related programs. Lockport economic development | Active. The agency board still meets monthly. It has posted agendas and minutes through its July 2026 meeting. Town of Lockport IDA meetings and agendas It reported seventeen open projects in fiscal year 2023. That was the last year it filed with the state. Authorities Budget Office IDA project data |
| Lake Mariner state sales tax exemption claim and county challenge | There is no verified local industrial development agency package for TeraWulf's Lake Mariner campus in the town of Somerset. What the operator has done instead is claim the statewide internet data center exemption. It has paid no sales tax on a multibillion dollar buildout at the former coal fired power plant site. Niagara County investigation W. Construction Group | Nothing to apply for locally. In late May 2026 the Niagara County Legislature authorized its attorney to retain outside counsel to 1) identify the purchasing entities, 2) work out which expenditures were actually exempt, and 3) sue under the New York False Claims Act to collect any sales tax owed to the county. A separate resolution goes after road damage from project truck traffic. Niagara County investigation Buffalo Business First | Live and unresolved. The county measure is Resolution CW-006-26, taken up at a special meeting on May 28, 2026. It also sends a certified copy to the state tax department and to the Attorney General. Niagara County Resolution CW-006-26 As of July 21, 2026 the operator was still paying no state or local sales tax. The county was still working out how much revenue it is losing. Investigative Post |
Rockland County
The county industrial development agency approved nearly 77 million dollars in sales tax breaks in 2024 for a JPMorganChase AI data center expansion in Orangeburg that promises one permanent job. New York Focus Reinvent Albany It was one of three Orangetown AI data center deals that year totaling about 136 million dollars. lohud
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Rockland County IDA sales tax abatement for JPMorganChase data center | The Rockland County Industrial Development Agency approved abatement of up to 76,715,000 dollars in sales tax on 916 million dollars of computers and equipment. The abatement is for the expansion of a JPMorganChase AI data center at 140 Old Orangeburg Road in the town of Orangetown. The inducement resolution is dated April 23, 2024. Inducement resolution Reinvent Albany The earlier phase of the same campus, known as Project Sycamore, carried a PILOT plus about 35 million dollars in state and county sales tax breaks. The project had largely claimed those breaks by 2024. New York Focus | The project promised exactly one additional permanent job. Watchdog groups called it the largest subsidy per job for any project on record. The agency defended it with a cost benefit study finding a net gain for the county. The company was expected to seek an updated PILOT closer to completion. New York Focus Reinvent Albany syracuse.com Investigative Post | Active. The agency reported the JP Morgan Chase project in Orangeburg as still open in fiscal year 2024. That was the last year it filed with the state. The planned end year is 2037. That entry traces back to the first approval in September 2017. Authorities Budget Office IDA project data The agency's posted board packets include an authorizing resolution for JPMC II in February 2024 and an amended inducement resolution in April 2024. Rockland IDA meetings and board packets |
| Rockland County IDA data center awards in Orangetown, 2024 | Three AI data center projects in the town of Orangetown drew a combined 136 million dollars in tax breaks from the Rockland County Industrial Development Agency in 2024. Alongside the JPMorganChase award, the agency approved up to 58 million dollars tied to a DataBank project. About 50.25 million dollars of that benefits CoreWeave as the main tenant. Nearly 8 million dollars goes to DataBank itself. lohud Rockland County IDA CoreWeave authorizing resolution | Each award is its own negotiated package of sales tax exemptions and financial assistance. So there is no standing program to apply to. Orangeburg in the town of Orangetown has become a data center hub, and several of those projects carry agency tax breaks. lohud New York Focus | Live. The agency closed the CoreWeave piece with an authorizing resolution adopted on September 19, 2024. That resolution approved the deal as a straight lease transaction. Rockland County IDA CoreWeave authorizing resolution The DataBank sales and use tax exemption at 2000 Corporate Drive was set to run out on December 31, 2025. The agency extended it to December 31, 2026 by a resolution adopted on February 24, 2026. Rockland County IDA sales tax period extension resolution State data gives the CoreWeave award a planned end year of 2034. It gives the DataBank award a planned end year of 2032. Authorities Budget Office IDA project data |
North Carolina still exempts AI data center equipment and software from sales and use tax, once the Secretary of Commerce certifies that at least 75 million dollars of private money is going into the site. N.C. Gen. Stat. § 105-164.13(55a) N.C. Gen. Stat. § 105-164.3(201) The budget Governor Stein signed on July 7, 2026 repealed the companion exemption on the electricity those facilities buy. S.L. 2026-41, section 44.4 NCGA bill history for S.B. 257 The state has no property tax abatement power, so every local deal here is a cash grant that hands back an agreed share of the taxes an AI data center actually pays. N.C. Const. art. V, sec. 2(2) N.C. Gen. Stat. § 158-7.1
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Qualifying datacenter sales and use tax exemption on support equipment | Datacenter support equipment located and used at a qualifying datacenter is exempt from state and local sales and use tax. N.C. Gen. Stat. § 105-164.13(55a) N.C. Gen. Stat. § 105-467(b) The statute defines that equipment as property capitalized for tax purposes and used in the business of an owner, user, or tenant of the site. It reaches gear that generates, transforms, transmits, distributes, or manages electricity. That includes exterior substations, generators, transformers, unit substations, uninterruptible power supply systems, batteries, power distribution units, and remote power panels. It also reaches 1) HVAC and mechanical systems such as chillers, cooling towers, air handlers, and pumps 2) hardware and software for distributed and mainframe computers and servers 3) data storage devices 4) network connectivity equipment 5) peripheral components and 6) related computer engineering or computer science research. N.C. Gen. Stat. § 105-164.13(55a) The electricity half of this exemption is gone. I read the ratified budget text. Section 44.4 strikes every electricity reference in the subdivision, including the sentence that forfeited the exemption for power not used at the site. So power bought for an AI data center is now taxable. S.L. 2026-41, section 44.4 Data Center Knowledge | The Secretary of Commerce must make a written determination that at least 75 million dollars in private funds has been or will be invested by one or more owners, users, or tenants. The investment must happen within five years of the date the owner, user, or tenant makes its first real or tangible property investment on or after January 1, 2012. Money spent before January 1, 2012 does not count. N.C. Gen. Stat. § 105-164.3(201) Economic Development Partnership of North Carolina Because the statute lets owners, users, and tenants be counted together, colocation tenants can ride on a shared facility certification. The site must certify that it meets the wage standard for its development tier area. There is no wage standard at all in a development tier one area. It must also certify that it provides health insurance for all full time employees. It must pay at least 50 percent of the premiums for coverage that equals or exceeds the basic plan recommended under N.C. Gen. Stat. § 58-50-125. Missing the investment, or using the equipment somewhere else, forfeits the exemption and brings back taxes plus interest. N.C. Gen. Stat. § 105-164.13(55a) The statute has no sunset date. The governor's office noted that this puts North Carolina among roughly seven states whose AI data center exemptions never expire. Office of the Governor memo, April 6, 2026 | Active as of August 2, 2026. The electricity component was repealed effective July 7, 2026. S.L. 2026-41 |
| Eligible Internet datacenter sales and use tax exemption on business property | Eligible business property located and used at an eligible Internet datacenter is exempt from sales and use tax. Eligible business property means capitalized property that is 1) used to provide a service included in the business of the primary user 2) used to generate, transform, transmit, distribute, or manage electricity, including exterior substations, or 3) used for related computer engineering or computer science research. N.C. Gen. Stat. § 105-164.13(55) The electricity half of this one was repealed too. The ratified budget strikes the words sales of electricity for use at an eligible internet datacenter from subdivision 55 itself, not only from the newer qualifying datacenter subdivision. So the older certifications lose their power exemption on the same terms. S.L. 2026-41, section 44.4 | The Secretary of Commerce must determine that at least 250 million dollars in private funds has been or will be invested at the facility. That investment counts real property or eligible business property. The investment must happen within five years after construction starts. The facility must be used mainly by a business in NAICS industry 511210 software publishing or NAICS industry 519130 Internet activity. At the time of application the county must have carried an enterprise tier one, two, or three designation or a development tier one or two designation. A later change in the county tier does not disqualify the facility. The site must sit on a single parcel or on contiguous parcels held in common ownership or by affiliation with the operator. N.C. Gen. Stat. § 105-164.3(79) N.C. Gen. Stat. § 105-164.13(55) Economic Development Partnership of North Carolina This is the older program built around the 2006 to 2008 Google era. It is still on the books. Nobody publishes a count of who claims it. The Department of Commerce told the Energy Policy Task Force that it issued 37 written determinations of eligibility between 2015 and 2025 under the newer qualifying datacenter program. It also told the task force that companies never have to report what they claim, unless the Department of Revenue audits them. That is why no live claimant list exists for either subdivision. Department of Commerce memo, April 6, 2026 | Active as of August 2, 2026. The electricity component was repealed effective July 7, 2026. S.L. 2026-41 |
| Datacenter computer software sales tax exemption | Computer software sold to a person who operates a datacenter and used within that datacenter is exempt from sales and use tax. N.C. Gen. Stat. § 105-164.13(43a)b. Economic Development Partnership of North Carolina A neighboring clause in the same subdivision separately exempts software bought to run on an enterprise server operating system. So most AI data center software purchases land in one basket or the other. N.C. Gen. Stat. § 105-164.13(43a) | The buyer has to operate a datacenter as the sales tax article defines it. That means a facility that provides infrastructure for hosting or data processing services and is concurrently maintainable. It must have redundant capacity components and multiple distribution paths serving the computer equipment. N.C. Gen. Stat. § 105-164.3(47) There is no minimum investment and no Commerce certification for the software exemption. The budget signed on July 7, 2026 left it alone. S.L. 2026-41, section 44.4 | Active. N.C. Gen. Stat. § 105-164.13 |
| Repealed sales tax exemption on electricity for data centers | This is a repeal, not a benefit. North Carolina taxes electricity through the sales tax rather than through a separate utility tax. So until July 2026 both AI data center exemptions took that tax off power used at certified sites. Section 44.4 struck the electricity language from the eligible Internet datacenter subdivision and from the qualifying datacenter subdivision. It left the equipment exemptions standing. S.L. 2026-41, section 44.4 Data Center Knowledge The Fiscal Research Division put the gain to the General Fund at 21.4 million dollars in the 2026 to 2027 fiscal year. It rises to 28.6 million dollars a year by the 2030 to 2031 fiscal year. Carolina Journal The Department of Commerce had valued the electricity exemption at about 20 million dollars a year for existing operators. It valued the exemption at about 160 million dollars a year if the whole announced pipeline gets built. Department of Commerce memo, April 6, 2026 | None. The repeal applies to every AI data center whatever its certification status. Section 44.4(b) makes it effective when the act became law. It applies to electricity billed on or after that date for electricity sold on or after that date. So the operative date is July 7, 2026. S.L. 2026-41, section 44.4(b) NCGA bill history for S.B. 257 NC Data Centers | Repealed effective July 7, 2026. That is the day Governor Stein signed the budget as Session Law 2026-41. NCGA bill history for S.B. 257 Carolina Journal |
| Property tax treatment, no abatements but software excluded | North Carolina has no state property tax and no state enabled abatement program. So a county cannot waive property taxes for an AI data center. Only the General Assembly can classify property for taxation, and it must do that statewide. N.C. Const. art. V, sec. 2(2) Computer software and its documentation are excluded from the local property tax base. Embedded microcode is carved out of that exclusion and stays taxable. N.C. Gen. Stat. § 105-275(40) Counties and cities pay negotiated cash incentive grants instead. Those grants hand back an agreed share of the property taxes the facility actually pays. N.C. Gen. Stat. § 158-7.1 | A local incentive grant needs approval by the county or city governing body after a public hearing. The statute ties the money to performance. N.C. Gen. Stat. § 158-7.1 Servers and other business personal property stay fully taxable unless a local grant offsets the bill. N.C. Gen. Stat. § 105-274(a) N.C. Gen. Stat. § 105-275(40) | Active. N.C. Gen. Stat. § 158-7.1 |
| No data center income tax credit, corporate rate phase out instead | North Carolina offers no income or franchise tax credit aimed at AI data centers. The corporate income tax rate is 2.25 percent for 2025 and 2 percent for 2026. It is scheduled to reach zero for tax years beginning in 2030. That helps every taxable operator without anyone filing an application. NCDOR corporate rates NC Budget and Tax Center The discretionary Job Development Investment Grant program rebates a share of employee withholding for new jobs. Both North Carolina and South Carolina estimated in 2007 that Google could pull about 4.8 million dollars from each state if it hit its target of roughly 200 jobs. Carolina Journal Modern projects rarely use it because they create few jobs. The governor's office told the Energy Policy Task Force that recent AI data center projects have either not received or not applied for state discretionary incentives. Office of the Governor memo, April 6, 2026 Reporting at the Amazon announcement in June 2025 said there were no state incentives for that project. Carolina Journal | The rate phase out applies automatically to every corporate taxpayer. NCDOR corporate rates Job Development Investment Grant awards are discretionary, job based, and negotiated through the Department of Commerce. NC Commerce, Job Development Investment Grant The 2026 budget left the corporate rate schedule alone. S.L. 2026-41 | Active. NCDOR corporate rates |
| Ratepayer Protection Act, Senate Bill 730 | This is a restriction, not an incentive. It is not law yet. The House version would 1) bar local governments from subsidizing an AI data center that uses at least 100 megawatts in a month 2) require utility contracts that make such facilities cover the cost of new generation, transmission, and grid expansion built to serve them 3) require closed loop cooling to hold down water use 4) require noise site assessments covering homes and schools within 500 feet of the property line 5) restrict foreign ownership and 6) block retirement of baseload plants until nuclear replacements are permitted. S.B. 730, fifth edition Carolina Journal NC Newsline WUNC | The House took up a rewritten committee substitute on June 3, 2026. It adopted one amendment 114 to 0 and tabled five others. It passed the bill on second reading 69 to 44. NCGA roll call H-685 NCGA bill history for S.B. 730 Third reading passed the same day with no recorded vote. That is why 69 to 44 is the only House passage count on the record for this bill. The House sent it back on June 4, 2026. The Senate received it for concurrence on June 8, 2026 and referred it to Rules and Operations the same day. Nothing has moved since. NCGA bill history for S.B. 730 The General Assembly adjourned in early July under a resolution. The resolution brings both chambers back on July 27, 2026 and keeps the bill alive. Carolina Journal Whether the Senate concurs on or after July 27, 2026 is not knowable as of August 2, 2026. If it does, the ban on local subsidies would end the county cash grant model for the largest new AI data centers. | Pending. The House passed it 69 to 44 on June 3, 2026. It has sat in Senate Rules and Operations since June 8, 2026. NCGA bill history for S.B. 730 |
County and local programs
Caldwell County
Caldwell County and the City of Lenoir have given Google two rounds of property tax grant deals, a 30 year package from 2007 and a 20 year expansion deal approved October 22, 2024. Good Jobs First City of Lenoir news release Google announced a further 1 billion dollar two year North Carolina investment centered on Lenoir in March 2026. City of Lenoir
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Google Lenoir original 2007 incentive deal | Caldwell County and the City of Lenoir gave Google a 100 percent personal property tax exemption and an 80 percent real estate tax abatement for 30 years. That came on top of a full state sales tax exemption on electricity and equipment. Good Jobs First put the whole package at an estimated 254 million dollars against a promise of 210 jobs. Good Jobs First, Money Lost to the Cloud Google was also estimated to receive about 4.8 million dollars in state job development investment grants tied to roughly 200 jobs. Carolina Journal | Negotiated for the AI data center Google announced in Lenoir in 2007. The deal followed a 13 month courtship in which the company staged one North Carolina county against another and pushed the legislature into enacting a special utility tax exemption. Good Jobs First, Money Lost to the Cloud A 30 year term running from 2007 reaches into the 2030s. Carolina Journal's looser shorthand for the same deal is 100 percent of property taxes and 80 percent of real estate taxes. That describes the same split. Carolina Journal | Live and still paying out. Caldwell County reported 6,713,335 dollars of economic development incentive payments for the fiscal year ended June 30, 2025. Google remained the county's largest property taxpayer at 677,395,603 dollars of assessed value. Caldwell County audit report, fiscal year 2025 No county document I read fixes an end date for the 2007 agreement. So the reported 30 year term is the only end date on the record. |
| Google Lenoir expansion grant approved October 2024 | Performance based incentive grants of 50 percent of real property taxes and 85 percent of personal property taxes over 20 years. The grants are for a Google expansion on about 60 acres next to its Lenoir campus at 708 Lynhaven Drive. City of Lenoir news release City of Lenoir The project is called Project Cardinal locally. It promises at least 600 million dollars of investment and about 30 jobs. Business North Carolina Journal Patriot The City of Lenoir also closed a segment of Virginia Street and agreed to add water capacity. Google voluntarily contributed 6.8 million dollars to keep water flow adequate at the campus. City of Lenoir news release | Approved at a joint meeting of the Caldwell County Board of Commissioners and the Lenoir City Council on October 22, 2024, by unanimous votes of both bodies. City of Lenoir news release City of Lenoir Journal Patriot Grants are paid only after proof of performance. They carry clawbacks under the local development statute. N.C. Gen. Stat. § 158-7.1 The 20 year term runs from the certificate of occupancy. Journal Patriot | Approved on October 22, 2024 and in effect now. The county minutes record the public hearing on the Project Cardinal incentive agreement and a unanimous motion to approve it. Caldwell County special meeting minutes, October 22, 2024 Google announced on March 13, 2026 a new 1 billion dollar investment over two years to grow its AI data center infrastructure in Lenoir. City of Lenoir announcement, March 13, 2026 |
Catawba County
Catawba County and the Town of Maiden gave Apple a 10 year property tax grant deal in 2009 that could be extended twice, and the county did extend it. Catawba County minutes, July 6, 2009 Good Jobs First subsidy tracker In November 2022 the county and the cities of Conover and Hickory and the Town of Maiden approved 10 years of grants for four Microsoft AI data centers. Data Center Dynamics Catawba County
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Apple Maiden 2009 incentive agreements | A 10 year contractual agreement between the Town of Maiden and Apple and between Catawba County and Apple. It grants an amount equal to 50 percent of the real property taxes and 85 percent of the personal property taxes. The county minutes say the agreement may be extended for up to two more 10 year terms, each requiring another 500 million dollars of investment. A recapture provision claws back a minimum payback if Apple falls short. For the initial term that payback is figured as 50 percent of the difference between 900 million dollars and the actual investment. Catawba County minutes, July 6, 2009 The extension did happen. Good Jobs First records Catawba County extending the 50 percent property tax rebate for an additional 20 years. The News and Observer reported in 2018 that the original 10 year term had already been stretched to 30 years as Apple kept building. Good Jobs First subsidy tracker News and Observer | Approved by the Catawba County commissioners on July 6, 2009 in exchange for Apple spending 1 billion dollars or more within 10 years and creating and keeping 50 company badged jobs within 24 months. Catawba County minutes, July 6, 2009 Apple has kept expanding the Maiden campus since. It committed another 448 million dollars in 2021 and a 175 million dollar building in 2025. It has now put more than 3 billion dollars into the county. Data Center Dynamics Charlotte Observer | Live. Catawba County still carries an Apple line in the Other Economic and Physical Development cost center. That cost center is where the county budgets incentive payments to companies with economic development agreements. Catawba County recommended budget, fiscal year 2025-26 The county economic development corporation told the board in 2017 that the deal is a 10 year grant. A second 10 years is added if the company spends another 1 billion dollars. A third 10 years is added if it spends another 500 million dollars. That runs to 2039 from the July 6, 2009 start. Catawba County Board of Commissioners agenda, January 17, 2017 |
| Microsoft four site economic development grants | Ten years of economic development grants from Catawba County and the cities of Conover and Hickory and the Town of Maiden. The grants are set at 50 percent of real property tax value plus 85 percent of personal property tax value. They are tied to Microsoft building four AI data centers in the county. Charlotte Regional Business Alliance Data Center Dynamics | Announced in November 2022. Microsoft guaranteed a minimum of 1 billion dollars of investment in the county over 10 years and up to 50 jobs. That investment breaks down to 332 million dollars in each municipality plus another 33 million dollars for a second site. Data Center Dynamics Catawba County joint statement Microsoft broke ground on three of the four sites in 2024. Data Center Dynamics | Being unwound. Catawba County and its municipal partners said on June 23, 2026 that Microsoft's sites in the county will pay property taxes on the full value of the buildings, equipment, and infrastructure located on site. They also said the local agreements are being amended to reflect that. Catawba County joint statement, June 23, 2026 The county described those amendments as still in progress. So the original grants have not been formally replaced yet. |
Person County
Microsoft paid 26.85 million dollars for the roughly 1,385 acre Person County Mega Park in Woodsdale Township in late 2024, and the county confirmed on February 24, 2026 that the site will be an AI data center campus with permitting starting later that year. WRAL Data Center Dynamics There is no incentive grant. WUNC, May 21, 2026 Neither the county announcement nor any board action reported through August 2, 2026 shows a grant agreement. What the county published instead is a list of Microsoft commitments. They are 1) to pay its own way on electricity so the project does not raise local power prices, 2) to replenish more water than it uses, 3) to hire locally, and 4) to fund information technology training and nonprofits. WRAL Data Center Dynamics The land assembly ran under nondisclosure agreements and permitting has not started, so a grant request could still surface later.
Richmond County
Richmond County approved a 20 year package of cash grants for the 10 billion dollar Amazon Web Services campus at Energy Way Industrial Park near Hamlet and Rockingham, announced June 4, 2025. Carolina Journal Richmond County EDC The county also publishes a standing incentive program open to manufacturing and warehouse or distribution projects. Richmond County incentive summary
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Amazon Web Services incentive grant agreement | A 20 year package of cash grants equal to 50 percent of the annual real property tax and 65 percent of the annual personal property tax. The grants apply to each of the 20 buildings proposed at the AWS cloud and AI campus. Amazon plans to invest 10 billion dollars and create at least 500 jobs. It launched a 150,000 dollar Richmond County community fund alongside the announcement. Carolina Journal Richmond County EDC Reporting at the announcement said the project came with no state incentives. Carolina Journal | The grants are contingent on 1 billion dollars of investment and 50 jobs by the end of 2030. Carolina Journal Like every local grant in North Carolina the package runs through the local development statute. That statute requires a public hearing and performance conditions. N.C. Gen. Stat. § 158-7.1 | Approved unanimously by the Richmond County Board of Commissioners on June 3, 2025 after a public hearing at which nobody spoke. It is in effect now. Richmond County Board of Commissioners minutes, June 3, 2025 The grant period for a building does not start until the first year a grant payment is requested for that building. Richmond County economic development incentive agreement, June 3, 2025 agenda packet |
| Richmond County standing local incentive program | The county advertises a general local incentive program that returns up to 85 percent of property taxes due over a five year period. The published page limits the program to manufacturing and warehouse or distribution companies. This is the off the shelf offer. It is separate from the negotiated Amazon package. Richmond County incentive summary | Awarded by the county after board approval under the local development statute. N.C. Gen. Stat. § 158-7.1 The published summary sets four investment tiers. They run from 50 percent back at 1 million dollars to 85 percent back at 50 million dollars. Richmond County incentive summary | Live as of July 2026. Richmond County still publishes the program on its own economic development page. The page gives no adoption date and no sunset date. Richmond County incentive summary |
Rutherford County
Rutherford County and the Town of Forest City both pay Meta grants that return most of the property taxes its Forest City AI data center pays, running through 2040. Business North Carolina Rutherford County EDC Town of Forest City recommended budget
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Meta Forest City incentive grants | Under the county agreements Rutherford returns an amount equal to 85 percent of property taxes and 95 percent of personal property taxes. Business North Carolina read the county annual report. It found that in fiscal 2020 the county collected 7.82 million dollars from the company and sent back 7.27 million dollars, about 93 percent. It also found that the reversals run through 2040. Business North Carolina The Town of Forest City budgets its own economic incentive grant separately, reported at 5,794,681 dollars in its recommended fiscal 2026 budget. That budget is published only as a scanned document with no machine readable text, so the line cannot be checked without reading the scan. Town of Forest City recommended budget | Tied to the facility at the former J.C. Cowan plant site off U.S. 74A near Forest City. Rutherford County EDC Facebook committed 450 million dollars and at least 42 full time workers and contractors at the 2010 announcement. Data Center Knowledge Business North Carolina The site broke ground in 2010 and opened in April 2012. It now runs four buildings with about 275 staff and contractors and roughly 1 billion dollars of capital investment. Business North Carolina Meta reports more than 750 million dollars of AI data center investment in North Carolina. It reports more than 5.9 million dollars in direct funding to Rutherford County area schools and nonprofits. Meta Forest City fact sheet | Live through 2040. Rutherford County's audited statements for the year ended June 30, 2024 say the economic development incentive payments will continue to be made to this taxpayer until the year 2040. The same statements say the county paid it 3,519,179 dollars that year. Rutherford County annual comprehensive financial report, fiscal year 2024 |
North Dakota exempts AI data center computer equipment and software from sales tax with no minimum investment and no job requirement, and the state taxes no business personal property at all. N.D.C.C. § 57-39.2-04.17 N.D.C.C. § 57-02-08 The exemption came through the 2025 regular session and the January 2026 special session without being narrowed, since the special session was called mainly for federal rural health money. North Dakota Legislative Council, January 2026 Two clocks are running. The exemption is in its scheduled six year review before the Tax Reform and Relief Advisory Committee Legislative Council memorandum 27.9096.01000, and a new interim committee on artificial intelligence and data centers began meeting in July 2026 ahead of the 2027 session. North Dakota Monitor
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Qualified data center sales and use tax exemption | Exempts enterprise information technology equipment and computer software from the 5 percent state sales and use tax. Covered items include computer hardware, servers, routers, cooling systems and cooling towers, temperature control and power infrastructure, exterior dedicated business owned substations, backup power generation systems, battery systems, racking systems, raised flooring, cabling, and trays. Software loaded at the center also qualifies, along with software maintenance, licensing, and customization. Upgraded and replacement equipment and software also qualify. Owners, operators, and tenants of a certified facility all qualify. N.D.C.C. § 57-39.2-04.17(1) and (5) Office of State Tax Commissioner, Business Tax Incentives There is no cap on the number of certified facilities and no sunset date. The exemption also wipes out city and county sales tax on the same purchases. Home rule sales taxes must conform in all respects to the taxable or exempt status of items under chapter 57-39.2. N.D.C.C. § 11-09.1-05(5)(a) N.D.C.C. § 40-05.1-06(5)(a) The Tax Department told the Tax Reform and Relief Advisory Committee on September 23, 2025 that claimants saved about 40.9 million dollars in the prior year. That figure is 5 percent of roughly 818 million dollars of qualifying purchases. It spanned 18 applications tied to 115 jobs. InForum That aggregate is all the public gets. Each owner reports its own claimed amount, jobs, and local incentives to the Tax Commissioner every January. The statute lets the Tax Commissioner hand those figures over only on written request from the chairman of Legislative Management or of a standing committee. Even then the owner's name stays out. N.D.C.C. § 57-39.2-04.17(8) and (9) | The facility must 1) be newly constructed or substantially refurbished after December 31, 2020, 2) be comprised of one or more buildings whose primary purpose is to contain a data center, 3) total at least 15,000 square feet with no fewer than 50 percent used for data processing, 4) sit on a single parcel or contiguous parcels, 5) have sophisticated fire suppression and prevention systems and enhanced security such as video camera surveillance and pass code, key card, or biometric access control, and 6) be certified by the Tax Commissioner. Office, meeting, mechanical, and support space counts toward the square footage if it supports the equipment. N.D.C.C. § 57-39.2-04.17(5)(e) and (6) There is no minimum investment and no job or wage requirement. The future owner applies to the Tax Commissioner for certification. It must answer any request for more information within thirty days or the application may be dropped. N.D.C.C. § 57-39.2-04.17(2) A buyer either obtains an exemption certificate before purchase or pays the tax and applies for a refund. A refund is also available for tax a contractor remitted. N.D.C.C. § 57-39.2-04.17(3) and (4) An owner that collocates operators or tenants must give them the Tax Commissioner's documentation that the center qualifies. The tenant submits a copy with its own exemption application. N.D.C.C. § 57-39.2-04.17(7) By January 31 each year the owner must file a report showing the exemption claimed, jobs created or retained, and the type and value of any local incentives received. N.D.C.C. § 57-39.2-04.17(8) | Active as of July 2026. Senate Bill 2137 reenacted it in 2021 after the original 2015 version at N.D.C.C. § 57-39.2-04.13 expired on December 31, 2020. It is now in the six year review that section 54-35-26 requires for economic development tax incentives. Legislative Council memorandum 27.9096.01000 |
| Personal property tax exemption | North Dakota taxes only real property. All business personal property, including servers, graphics processors, racks, office equipment, and inventory, is exempt from property tax. Narrow exceptions apply to certain oil and gas refineries and utilities. N.D.C.C. §§ 57-02-04 and 57-02-08 An AI data center pays property tax only on its land and buildings. That makes North Dakota structurally cheaper than states that tax computer equipment as personal property. Office of State Tax Commissioner, Business Tax Incentives | Automatic statewide. No application, certification, or filing is needed. Office of State Tax Commissioner, property tax exemptions and credits | Active as of July 2026. Office of State Tax Commissioner, Business Tax Incentives |
| New or expanding business property tax exemption and payments in lieu of taxes | A city or county may grant a partial or complete property tax exemption on project buildings, structures, fixtures, and improvements for up to 5 years. Two extensions exist. A project that produces or manufactures a product from agricultural commodities may get years 6 through 10. A project on property leased from a government entity may get up to 5 additional years on annual application. In addition to or instead of the exemption, the local government and the operator may negotiate payments in lieu of property taxes. Those payments run no later than the twentieth year from the start of operations. Land never qualifies. N.D.C.C. ch. 40-57.1 Office of State Tax Commissioner, incentives for new or expanding businesses | The project must be a new or expanding revenue producing enterprise certified as a primary sector business by the North Dakota Department of Commerce. Application goes to the city or county governing body. It must be granted before construction begins or before an existing building is occupied. Payments in lieu of taxes may be approved after construction or occupancy. The governing body must consult the Department of Commerce first. If Commerce estimates total project costs above one billion dollars, Commerce must hold a public hearing with notice to every affected taxing district and to any local competitor. A hyperscale AI campus will hit that trigger. Affected school districts and townships get nonvoting seats in negotiations. The operator must publish two notices to competitors. A public hearing is required. A county or school district may decline to participate in a city granted exemption. A project is ineligible if 1) it already received a property tax exemption under tax increment financing, 2) the governing body finds the exemption would foster unfair competition, or 3) the operator is delinquent on any state or local tax. N.D.C.C. ch. 40-57.1 Office of State Tax Commissioner, incentives for new or expanding businesses Office of State Tax Commissioner, Business Tax Incentives As of August 2, 2026 I found no grant of this exemption or of payments in lieu of taxes to a North Dakota AI data center. Applied Digital's own filings show it paying rising unabated property tax in Dickey and Stutsman counties. Applied Digital economic impact study The one dataset that would settle the question statewide is the annual local incentive report each certified owner files with the Tax Commissioner. That report is closed to the public. N.D.C.C. § 57-39.2-04.17(8) and (9) | Active as of July 2026. Office of State Tax Commissioner, Business Tax Incentives |
| Electricity exempt from sales tax | North Dakota does not apply its sales tax to electricity. An AI data center pays no state sales tax on its power bill regardless of size or use. Natural gas and heating fuels are exempt under a later subsection of the same section. N.D.C.C. § 57-39.2-04(27) and (53) Because home rule city and county sales taxes must conform to the state list of exempt items, the power bill carries no local sales tax either. N.D.C.C. § 11-09.1-05(5)(a) N.D.C.C. § 40-05.1-06(5)(a) North Dakota also imposes no separate tax on AI data center electricity consumption, unlike the per kilowatt hour tax Virginia added in 2026. Office of State Tax Commissioner, Business Tax Incentives Virginia 2026 Appropriation Act item 3-5.24 | Automatic for all buyers. No application, certification, or usage threshold. A separate production use exemption with a Form 208 certificate exists for fuels used in manufacturing and processing. An AI data center does not need it for electricity. N.D.C.C. § 57-39.2-04(27) ICS Tax, North Dakota utility sales tax exemption | Active as of July 2026. Office of State Tax Commissioner, Business Tax Incentives |
| New or expanding business income tax exemption | Up to 5 years of exemption from North Dakota income tax on the net income of a project for a new business or an expansion of an existing one. N.D.C.C. ch. 40-57.1 With corporate rates of 1.41 to 4.31 percent the dollar value is modest but real. The project still has to file an annual income tax return. Office of State Tax Commissioner, Business Tax Incentives | The business must 1) be certified as primary sector or tourism by the Department of Commerce Division of Economic Development and Finance, 2) apply to the State Board of Equalization no later than one year after operations begin, 3) notify competitors in the manner the Board prescribes, and 4) clear a public meeting vote. A business is ineligible if 1) it already received a property tax exemption under tax increment financing, 2) it owes delinquent state or local tax or has a recorded tax lien, or 3) the Board finds the exemption would foster unfair competition or endanger existing business. N.D.C.C. ch. 40-57.1 Office of State Tax Commissioner, Business Tax Incentives Primary sector status is not something an AI data center either has or lacks by definition. A primary sector business is one Commerce certifies as adding value to a product, process, or service through knowledge or labor in a way that creates new wealth. New wealth means revenue from customers outside the state or from products that were previously unavailable in state. N.D.C.C. § 1-01-49(21) Commerce decides that site by site on a single application form. A campus selling compute to out of state tenants has a real argument. A campus serving in state customers has a weaker one. Commerce form SFN 52998 | Active as of July 2026. Office of State Tax Commissioner, Business Tax Incentives |
| Computer and telecommunications equipment sales tax exemption | A sales and use tax exemption for computer and telecommunications equipment that is an integral part of a new primary sector business or that creates an economic expansion of an existing one. N.D.C.C. § 57-39.2-04.3 This is the fallback route for a technology facility that does not meet the qualified data center definition. Replacement equipment does not qualify. That makes it weaker than the AI data center exemption. Office of State Tax Commissioner, sales tax exemptions and incentives | The business must be a primary sector business other than a manufacturer or recycler, certified by the North Dakota Department of Commerce Division of Economic Development and Finance. It should obtain Tax Commissioner approval before purchase or pay the tax and claim a refund. Office of State Tax Commissioner, Business Tax Incentives The same value added and new wealth test that governs the chapter 40-57.1 exemptions governs here. Commerce runs it location by location. N.D.C.C. § 1-01-49(21) Commerce form SFN 52998 | Active as of July 2026. Office of State Tax Commissioner, sales tax exemptions and incentives |
| Backup power siting exemption for large on site generation | On site backup electric generation that is not interconnected with the grid no longer counts as an electric energy conversion facility. It escapes Public Service Commission siting review even above the fifty megawatt threshold that otherwise pulls generation in. N.D.C.C. § 49-22-03 An AI data center can add large backup generation with local approval only. Environmental protections still apply. Applied Digital testified for the bill. It said off grid backup protects workers and equipment during an unexpected disconnection and lets a large load ride through emergencies. Governor Armstrong signed it at the Applied Digital campus in Ellendale. Office of the Governor | The generation must 1) serve the facility on site, 2) stay off the grid, and 3) run on a temporary basis to replace primary generation when that is unavailable. N.D.C.C. § 49-22-03(1) Effective August 1, 2025. | Enacted 2025 and in effect. Representatives Novak and Grueneich and Senators Erbele, Kessel, and Patten sponsored it. Nobody voted against it, 91 to 0 in the House and 47 to 0 in the Senate. House Bill 1539 as enrolled |
| Large energy consumer grid impact study | This is oversight rather than an incentive. It orders a legislative management study during the 2025 to 2026 interim of how AI data centers and other large loads affect 1) grid reliability, 2) upgrade costs and who pays them, 3) regulatory consistency among utility types, 4) ratepayer impacts, and 5) exemption criteria for large loads. House Bill 1579 House Bill 1579 as enrolled It is the surviving remnant of a bill by Rep. Anna Novak that would have required a data center to obtain a certificate of public convenience and necessity before building. original bill text 25-1252-01000 Applied Digital, the Data Center Coalition of North Dakota, and several electric cooperatives opposed it. The North Dakota Planning Association backed it. North Dakota Monitor The work landed with the interim Energy Development and Transmission Committee. Energy Development and Transmission Committee study directives The committee took testimony on AI data centers in Grand Forks on June 2, 2026. North Dakota Monitor | The study must evaluate 1) grid capacity and upgrade cost allocation, 2) the certificate of public convenience and necessity process for private end users, 3) economic impacts including tax revenue, and 4) colocated backup generation. study text 25-1252-03000 The bill was filed with the Secretary of State on April 28, 2025. Legislative Assembly bill overview | Enacted 2025. The study is underway through the 2026 interim. Findings are due to the 2027 session. Legislative Assembly bill overview House Bill 1579 as enrolled |
| Interim committee on artificial intelligence and data centers | Oversight, not an incentive, and the single biggest thing to watch in North Dakota right now. As chair of Legislative Management, Senate Majority Leader David Hogue created a new interim committee to study 1) the economic, state, and local interests in siting AI data centers, 2) the broader development of data centers, and 3) artificial intelligence generally. Rep. Jonathan Warrey chairs it. Route Fifty North Dakota Monitor Its first meeting on July 15, 2026 in Bismarck drew more than 70 members of the public and 50 minutes of public comment dominated by opposition to AI data center projects. One legislator urged local governments to adopt a nine month moratorium until the full Legislature can act. North Dakota Monitor Anything this committee recommends would move in the 2027 regular session. North Dakota holds regular sessions only in odd numbered years. | The committee expects roughly five meetings, three in Bismarck and two elsewhere. The next is on August 13, 2026. Additional meetings run through the end of October 2026. It is accepting written testimony. That is unusual for a North Dakota interim committee. North Dakota Monitor | Active as of July 2026. No recommendation has been issued yet. North Dakota Monitor |
County and local programs
Barnes County
Barnes County commissioners approved a six month moratorium on new data centers on May 19, 2026 to give officials time to write guidelines, and no project had actually been proposed there. Valley News Live Barnes County Commission minutes, May 19, 2026 Valley City officials separately said infrastructure gaps are a barrier to hosting one. Valley News Live No local incentive exists.
Cass County
Applied Digital is building the 3 billion dollar 280 megawatt Polaris Forge 2 AI data center campus at Harwood under a lease to Oracle, and no local tax incentive could be found. Valley News Live InForum The company is paying the full cost of the power infrastructure rather than receiving a subsidy for it. North Dakota Monitor
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| No local tax incentive found, and the developer funds the grid upgrade | The Public Service Commission approved the Agassiz Transmission Line and Substation on April 29, 2026. The project is a roughly 1.74 mile double circuit 345 kilovolt tap line and a 345 to 34.5 kilovolt substation south of Harwood. PSC Case No. 26-0022 PSC findings of fact, conclusions of law and order in Case No. PU-26-22 Cost rose from 75 million dollars to 110 million dollars. Minnkota Power Cooperative will own it. Cass County Electric Cooperative will serve the load. Applied Digital pays the entire cost, so this is the reverse of an incentive. North Dakota Monitor Applied Digital closed a 2.15 billion dollar bond offering in March 2026 to fund the campus. Valley News Live North Dakota Monitor The campus itself is Polaris Forge 2. It is a 280 megawatt AI data center Applied Digital is building near Harwood and leasing to Oracle. The company expects it to employ more than 200 workers. Valley News Live | Not applicable. No exemption, abatement, or payment in lieu of taxes was granted. Annexation into Harwood remained an open question through 2026. North Dakota Monitor Fargo dropped its own competing bid to annex the site in December 2025. Harwood planned to annex the land itself. InForum | In effect now. The Public Service Commission granted the certificate of corridor compatibility and the route permit on April 29, 2026. PSC findings of fact, conclusions of law and order in Case No. PU-26-22 Minnkota then filed notice that it would start construction on or shortly after May 18, 2026. Minnkota notice of intent to start construction |
Dickey County
Applied Digital pays full and rising property tax on its Polaris Forge 1 AI data center campus at Ellendale Applied Digital economic impact study, which it joined by annexation rather than by seeking a tax deal North Dakota Monitor, and the state backed workforce housing instead of a tax break. Office of the Governor
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| R-WISH workforce housing support for the Applied Digital expansion at Ellendale | Bank of North Dakota capital backs construction of 20 new homes and a 38 unit apartment complex in Ellendale for workers at the Applied Digital campus. Up to 10 million dollars statewide is available for the pilot. It was the first use of the Rural Workforce Initiative to Support Housing program. Headwaters Development LLC was the private partner. Office of the Governor This is housing finance, not a tax incentive. The Ellendale buildout is a roughly 5 billion dollar investment across a 380,000 square foot building and two additional 900,000 square foot expansions. Office of the Governor CoreWeave has contracted for 400 megawatts of critical information technology capacity there. Applied Digital, CoreWeave lease at Polaris Forge 1 Applied Digital Applied Digital projects 2.1 million dollars in Dickey County property tax for 2026, up from 30,267 dollars in 2023. No abatement applies. Applied Digital economic impact study Applied Digital petitioned the city of Ellendale in December 2024 to annex the AI data center property. The mayor said the step would expand municipal services and increase the city budget. The city set a public hearing for December 19, 2024. North Dakota Monitor | Available when a company locates or expands operations in a rural community of 20,000 residents or fewer. The state Industrial Commission approved the pilot in June 2024. The Bank of North Dakota provides the capital alongside private developers. Office of the Governor | Active. The Bank of North Dakota still administers R-WISH. Its audited notes report that 4.748 million dollars of the 10 million dollars of capital available to the program had been transferred as of December 31, 2025. Bank of North Dakota 2025 annual report The Industrial Commission approved the pilot on June 26, 2024. The approval carries no end date. Bank of North Dakota, Industrial Commission approves workforce housing pilot |
Dunn County
Dunn County commissioners issued a twelve month moratorium in mid March 2026 covering AI data centers along with solar farms and battery storage, so that staff could write permitting ordinances. The county is working on wind farm rules at the same time. KFYR No local incentive exists.
Mercer County
Mercer County commissioners voted three to two on March 3, 2026 for a one year moratorium on permitting new data centers, after residents objected to a proposed NextEra Energy Resources and Basin Electric Power Cooperative campus. Central Nordak Publishing Basin Electric Power Cooperative, River Run Energy Center open house The pause is doing its job. The zoning board recommended a full AI data center ordinance at a public hearing in Stanton on June 24, 2026. The commission passed first readings on July 1, 2026 after hours of debate. That debate 1) struck the development agreement section, 2) moved the half mile setback to run from the property boundary rather than the nearest building wall, and 3) stretched certified mail notice to landowners within five miles to thirty days before a hearing. Central Nordak Publishing Commissioners have said they will end the moratorium early once the final ordinance is ready rather than wait out the full year, and landowners are asking for two weeks of notice before that vote. KXNET There is no local incentive here. There is a pause and a rulebook being written.
Morton County
Morton County adopted a moratorium on data centers and cryptocurrency mining facilities in September 2024. The county was still drafting data center specific use standards through 2026. A planning and zoning subcommittee formed on May 27, 2026 to make final edits to a draft dated June 24, 2026. Morton County draft data center standards No incentive, and no permitting path settled yet.
Oliver County
Oliver County went from an AI data center pause to a signed access agreement in four months. Commissioners imposed a 180 day moratorium in March 2026 and repealed it at a special meeting on April 30, 2026 KFYR, March 23, 2026 KFYR, then signed a road use and operations agreement with an Applied Digital subsidiary on July 10, 2026 for a site south of Hanover. The agreement carries conditions but no tax break. Valley News Live
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Road use and operations agreement with APLD BIS-01, LLC | Not a tax incentive. The county extracted commitments rather than granting relief. Under the agreement, 1) Applied Digital will build a private access road off Highway 31 so heavy construction traffic stays off county roads, 2) loads above 34,000 pounds are limited to state highway routes, 3) no wastewater may be discharged into the on site aquifer, 4) initial cooling water will be trucked in, 5) waste goes to a septic system hauled off site by licensed haulers, 6) a noxious weed plan is due within 60 days, 7) the Department of Environmental Quality sets generator testing timeframes, and 8) the company will fund sheriff, emergency management, fire, and ambulance needs before property tax revenue arrives. Applied Digital projects roughly 200 permanent jobs and about 1,000 construction jobs. Valley News Live | The rezoning application for the site near Center was still awaiting a county vote as of mid July 2026. The company hoped to break ground in summer 2026, with completion in 18 to 24 months. Valley News Live | In effect now. The commissioners repealed the 180 day moratorium that had blocked AI data center approvals at a special meeting on April 30, 2026. That returned the project to the standard notice, public hearing, and planning and zoning track. KFYR They signed the road use and operations agreement with APLD BIS-01, LLC on July 10, 2026. Valley News Live |
Stutsman County
Applied Digital pays rising county property tax on its Jamestown AI data center campus and used state bank financing rather than any local tax break. Applied Digital economic impact study Applied Digital, financing for the Jamestown HPC data center campus
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Bank of North Dakota site financing for the Applied Digital Jamestown high performance computing campus | A 16 million dollar loan from the state owned Bank of North Dakota and Cornerstone Bank closed in March 2024 to finance the Jamestown high performance computing data center. Applied Digital This is financing support, not a tax incentive. Applied Digital projects 407,644 dollars in Stutsman County property tax for 2026. I found no abatement against it. Applied Digital economic impact study | Negotiated lending through the Bank of North Dakota with a local lead bank. No certification program applies. Applied Digital Bank of North Dakota bank participation loan program | The loan closed on March 5, 2024 and carries a five year term. It runs into 2029 unless it is repaid early. Applied Digital The Bank of North Dakota bank participation loan program that routes its business lending through a local lead bank is still open. Bank of North Dakota bank participation loan program Whether this particular loan is still outstanding is not public. The 2025 legislative session gave the Bank authority to protect the confidentiality of participation loan borrowers. Bank of North Dakota 2025 annual report |
Williams County
Atlas Power's crypto and compute campus near Williston received no documented local incentive. It fought the county over permit violations in 2023 when commissioners voted to cut its power Williams County update on Atlas Power, and in March 2026 it began paying settlements to neighbors who had sued over noise. KFYR Its load also strained an already congested part of the grid, which the Public Service Commission chair says he would have flagged had anyone asked him first. North Dakota Monitor
Ohio gives full or partial sales tax exemptions on AI data center equipment under negotiated agreements that can run as long as forty years, and cities and counties stack ten to thirty year property tax abatements on top of that. R.C. 122.175 Signal Ohio Governing Governor DeWine froze new state awards after the Tax Credit Authority met on June 1, 2026, once the state learned the exemption had cost about 1.57 billion dollars in 2025, roughly eleven times the official forecast. Governor DeWine announcement Signal Ohio House Bill 646 would amend three sections of the Revised Code, one of them the exemption statute, and enact fourteen new sections about data centers. H.B. 646 It cleared the Senate Energy Committee on June 10, 2026, was informally passed and recommitted to that committee the same day, and it has not moved since. H.B. 646 status
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Data center sales and use tax exemption | The Ohio Tax Credit Authority may exempt certain purchases from state and local sales and use tax, in full or in part. The exemption covers 1) computer data center equipment, 2) the equipment that generates, transforms, transmits, distributes, or manages the electricity that runs it, 3) building and construction materials sold to contractors for incorporation into the center, and 4) the delivery, installation, and repair charges on that equipment. R.C. 122.175(A)(4) and (B) The state sales tax rate is 5.75 percent. R.C. 5739.02 County rates sit on top of it. The Authority picks both the percentage and the term. Some awards have run as long as forty years. R.C. 122.175(B) State records reported in June 2026 show eighteen companies holding exemptions. They are worth about 121 million dollars on average and about 2.3 billion dollars in total. The per company figures run 1) affiliates of Google, Meta, and Amazon at about 600 million dollars each over windows ending as late as 2058, 2) Cologix at about 93 million dollars, 3) Vantage at about 83 million dollars, and 4) QTS and Microsoft at about 73 million dollars each. Signal Ohio Those totals are floors rather than final numbers. The Amazon, Meta, and Google deals were signed between 2014 and 2018. Each started as a fifteen year exemption. Each stretched to forty years once the company invested 8 billion dollars in Ohio and hit its payroll targets. The state attached a footnote warning that the uncapped nature of the exemption means the final numbers could go higher. cleveland.com Policy Matters Ohio That is why the roughly 2.3 billion dollar figure sits near but not on top of the year by year revenue loss the Department of Taxation reports. One counts what the signed agreements were estimated to be worth. The other counts tax actually forgone in a given year. Signal Ohio Good Jobs First | One or more taxpayers operating at the project site must together make capital investment payments of at least 100 million dollars at the site within three consecutive calendar years. That threshold applies to projects beginning in or after 2015. They must also together pay at least 1.5 million dollars a year in compensation subject to Ohio withholding to employees at the site. That payroll test applies for each year of the agreement, starting with the twenty fifth month after the agreement was signed. R.C. 122.175(A)(5) Zaino Hall and Farrin Colocation providers and their tenants qualify. Several taxpayers may combine to reach the thresholds. A taxpayer can be added to an existing agreement with the same benefits and obligations. R.C. 122.175(M) The Authority may cut an award back if the center stops complying. The statute carries no sunset date. The current text took effect September 30, 2025 as amended by House Bill 96. R.C. 122.175 | Active for signed agreements. The Authority stopped taking new proposals after its June 1, 2026 meeting. Governor DeWine announcement |
| Pause on new sales tax exemption awards | This one is a restriction, not a benefit. Governor DeWine spoke on May 27, 2026. He said he had told the chair of the Ohio Tax Credit Authority to stop accepting new AI data center tax exemption proposals. The cutoff would fall after the Authority's scheduled June 1, 2026 meeting. He added that signed agreements would continue on their existing terms. Governor DeWine announcement Ohio Society of CPAs What triggered it was a May 21, 2026 disclosure by the Ohio Department of Taxation. The disclosure showed the exemption had cost the state about 1.57 billion dollars in calendar year 2025, against a November 2024 forecast of about 135.8 million dollars. It also showed about 554.9 million dollars in 2024, plus another 166.8 million dollars of local sales tax revenue in 2024 alone. Signal Ohio | It applies to new applicants only. Companies with executed agreements keep their terms. Governor DeWine announcement The pause runs while the General Assembly Joint Data Center Committee takes testimony. That committee was created May 13, 2026 and is co chaired by Senator Brian Chavez and Representative Adam Holmes. Ohio Society of CPAs Statehouse News Bureau Ohio Capital Journal MultiState The Authority approved one last award at the June 1, 2026 meeting. It was a 50 percent exemption for ten years worth about 42.3 million dollars, for two Cologix projects. The governor said those projects were already in the works. Signal Ohio Columbus Dispatch | In effect since June 1, 2026 with no announced end date. Governor DeWine announcement |
| House Bill 646, the sweeping data center rewrite that stalled | This is a proposed restriction, not a benefit. It never became law. Senator Brian Chavez grafted a full AI data center package onto House Bill 646. He unveiled it June 9, 2026. Ohio Capital Journal The bill would 1) generally cut the sales tax exemption to 50 percent, 2) allow 75 percent for projects that build on brownfields and bring their own power, 3) cap local property tax abatements for data centers at 50 percent, 4) bar data centers from the thirty year megaproject job creation grant, 5) direct the Public Utilities Commission of Ohio to create a statewide data center rate class, 6) provide that nondisclosure agreements do not override public records law, 7) require water use tracking, reporting, and closed loop cooling practices, and 8) require a surety bond tied to ten years of worker salaries. Toledo Blade Ohio Capital Journal H.B. 646 as re referred to Senate committee | The bill had already passed the House on March 18, 2026 and moved to the Senate. There it was re referred to the Energy Committee on June 2, 2026. On June 10, 2026 the Energy Committee reported it back. The Senate then informally passed it. Under Senate Rule 94 a motion to informally pass may be made at any time before the roll call is taken. Ohio Senate Rule 94 The status history records no Senate passage. The Senate recommitted it to Energy the same day. H.B. 646 status House objections to a companion extension of the sales and use tax break killed the negotiations that night. cleveland.com Statehouse News Bureau The docket shows no action since June 10, 2026. Reporting that month said the measure was unlikely to see substantive action before November 2026. H.B. 646 status Statehouse News Bureau | Laid aside in the Senate and recommitted to the Energy Committee on June 10, 2026, with no action since. H.B. 646 status |
| House Bill 957 and Senate Bill 374, the repeal bills | These are proposed repeals, not benefits. Neither has become law. Senator Kent Smith and Senator Louis Blessing III introduced Senate Bill 374 on March 11, 2026. It would bar the Tax Credit Authority from entering into any new exemption agreement on or after October 1, 2027. S.B. 374 status S.B. 374 as introduced Representative Tristan Rader introduced the House companion, House Bill 957, on May 27, 2026. That was the same day the governor announced the coming pause. The House bill sets its cutoff at October 1, 2026. H.B. 957 status H.B. 957 as introduced Rader press release Governor DeWine announces the pause, May 27, 2026 NBC4 Neither bill touches agreements the Authority has already signed. The existing forty year deals would run to term either way. cleveland.com Some news coverage in June 2026 gave the House bill the number 975. That number belongs to an unrelated law enforcement records bill in the same General Assembly. H.B. 975 The data center repeal is House Bill 957. H.B. 957 | Senate Bill 374 went to the Senate Finance Committee on March 25, 2026. S.B. 374 House Bill 957 went to the House Ways and Means Committee on June 3, 2026. H.B. 957 Neither has a recorded hearing or vote as of August 2, 2026. S.B. 374 status S.B. 374 committee record S.B. 374 votes H.B. 957 status H.B. 957 committee record H.B. 957 votes Separately, the legislature had written a repeal of the exemption into the fiscal 2026 and 2027 budget, House Bill 96. The governor vetoed that item when he signed the budget on June 30, 2025. The House held off on an override vote in March 2026 and has not taken one since. Ohio Capital Journal Clark Schaefer Hackett | Both introduced and sitting in committee with no hearings recorded. S.B. 374 status S.B. 374 committee record H.B. 957 status H.B. 957 committee record |
| No property tax on business equipment statewide | Servers and other AI data center equipment face no property tax anywhere in Ohio. The general business tangible personal property tax was phased out under House Bill 66 of 2005. The Department of Taxation says the tax ended for the vast majority of businesses once final payments came due in September 2008. A temporary carve out applied to telephone and inter exchange telephone companies. Ohio Department of Taxation Education Tax Policy Institute Buildings and land stay taxable by local governments. Those governments very often abate them for AI data centers through Community Reinvestment Area agreements, enterprise zones, and tax increment financing. Those local deals commonly wipe out 75 to 100 percent of the property tax on new buildings for fifteen years. Columbus Dispatch cleveland.com | Automatic for equipment, with no application. Ohio Department of Taxation Real property abatements are negotiated project by project with cities, townships, and counties. Columbus Dispatch cleveland.com | Active. General business equipment has been untaxed since the phase out finished in 2008 and 2009. Ohio Department of Taxation |
| Job Creation Tax Credit | A refundable credit equal to a negotiated percentage of the new employee payroll the project creates, taken mainly against the commercial activity tax. R.C. 122.17 Ohio has no corporate income tax. The commercial activity tax is what this credit usually offsets. The standard maximum term is fifteen years. It rises to thirty years for a megaproject. A megaproject means a project with at least 1 billion dollars in fixed asset investment or 75 million dollars a year in new Ohio payroll. The site must also need heavy utility service and a technically skilled workforce. R.C. 122.17 Bricker Graydon AI data centers have used the credit. A 2014 award to the Amazon affiliate Vadata was part of a package reported at about 93.7 million dollars covering data centers in Dublin, Hilliard, and New Albany. Good Jobs First subsidy tracker | A negotiated agreement with the Ohio Tax Credit Authority. It is tied to commitments for new full time jobs and new annual payroll at the project site. The Authority must approve it before hiring begins. The company reports to the state each year. R.C. 122.17 BLS and Co. Ohio incentives summary | Active. R.C. 122.17 |
| Kilowatt hour tax self assessment for large electricity users | Ohio levies its kilowatt hour excise tax on electric distribution companies. Those companies pass the cost through to customers. R.C. 5727.81 R.C. 4933.33 A commercial or industrial purchaser using more than 45 million kilowatt hours a year at a single location may register as a self assessing purchaser and pay the tax directly. The rate is 0.00257 dollars per kilowatt hour on the first 500 million kilowatt hours. It drops to 0.001832 dollars per kilowatt hour above that. R.C. 5727.81(C) Ohio Department of Taxation The rate steps down as volume rises. The effective tax falls for very large loads. This is a general industrial program rather than an AI data center program, but hyperscale sites are exactly the loads that qualify. | Annual use must exceed 45 million kilowatt hours at a single location. A tax commissioner estimate that the purchaser will use that much over the next twelve months also counts. The purchaser must then register with the Ohio Department of Taxation as a self assessing purchaser. R.C. 5727.81(A) Ohio Department of Taxation Brakey Energy | Active. R.C. 5727.81 |
| AEP Ohio data center tariff | This is a cost rule, not an incentive. The Public Utilities Commission of Ohio adopted a settlement on July 9, 2025. It ordered AEP Ohio to file tariffs that apply to data centers. PUCO New data center customers must pay for at least 85 percent of their subscribed power demand for a contract term of up to twelve years, even if they use less. They also face exit penalties and a collateral or guarantee requirement. That requirement is waived only if they clear credit rating and balance sheet tests. AEP Ohio data center tariff Kohrman Jackson and Krantz The point is to keep other ratepayers from carrying the infrastructure cost. The order also set a path out of a twenty eight month moratorium on new data center power agreements. AEP had imposed that moratorium in central Ohio in March 2023 without prior commission approval. PUCO Buckeye Institute The commission has since pushed the same idea toward other utilities. On May 14, 2026 it gave the three FirstEnergy utilities in Ohio thirty days to say how much more large data centers should pay for the transmission costs they create. The commission wrote that the change was needed to make sure future costs land on data centers. cleveland.com Ohio Manufacturers Association PUCO staff have recommended that AES Ohio create a similar data center rate class. I found no comparable tariff already in force at Duke Energy Ohio as of August 2, 2026. cleveland.com | The process is mandatory for all new data center service requests in AEP Ohio territory. Data centers or expansions of 25,000 kilowatts or greater also pay a load study fee. AEP Ohio data center tariff Existing customers and other utility territories follow their own rules. | Active since July 2025 and on appeal at the Ohio Supreme Court. The Ohio Manufacturers Association Energy Group filed the appeal in November 2025. It is case number 2025-1458, In re Application of Ohio Power Co. for New Tariffs Related to Data Centers and Mobile Data Centers. The appeal was taken from PUCO case 24-508-EL-ATA. Ohio Capital Journal The parties filed merit briefs in March 2026. I found no ruling from the court as of August 2, 2026. merit brief of Ohio Power Company |
County and local programs
Adams County
County officials have been shown abatement and tax increment financing proposals for a very large AI data center near the former Stuart power plant. Those discussions have run against organized local opposition and a township moratorium. As of June 11, 2026 the officials had still not received a formal proposal. Food and Water Watch Spectrum News 1
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Proposed incentives for the Adams County data center | Nothing has been granted. One proposal would give a fifteen year, 50 percent property tax abatement through a Community Reinvestment Area agreement. A second would give a 100 percent abatement for thirty years. A tax increment financing district is also proposed. It would split property taxes into two streams. One stream, on the unimproved land, would go to the county general fund. The other stream, on the buildings and land improvements, would not. Food and Water Watch Food and Water Watch on Ohio data center tax breaks The Adams County Board of Commissioners said on June 11, 2026 that it was still waiting to receive a formal proposal. I found no record of a vote on any of this as of August 2, 2026. Spectrum News 1 | Pending local approval. A May 2026 Food and Water Watch report describes the project as Amazon linked and calls it Project Galaxy. The report is based on communications among Amazon, county officials, and a hired law firm. Project Galaxy is the same Amazon Web Services search code name that attached to the Sidney campus. Food and Water Watch Wilmington News Journal Amazon has since confirmed its interest on a county hosted project page. That page puts the investment at 10 billion dollars and 500 jobs. Adams County project page Sprigg Township passed a twelve month data center moratorium in February 2026. Food and Water Watch County commissioners have said publicly that they have not signed and will not sign nondisclosure agreements about the project. They also said the county has no countywide zoning and that most townships have not adopted zoning of their own. Peoples Defender Peoples Defender The Army Corps of Engineers issued a federal permit for the site in 2026. Peoples Defender Food and Water Watch | Nothing is in effect. Adams County commissioners said in April 2026 that they still had nothing in writing about the project. They added that no formal request for a tax abatement or other incentive had been submitted to the county. Peoples Defender |
Clinton County
Wilmington is the site of a proposed 4 billion dollar Amazon Web Services AI data center on the 471 acre Cosler Farm property. The local incentive package is real. A federal judge nonetheless ordered the city in July 2026 to redo the zoning ordinances the project rests on. Wilmington News Journal WCPO
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Wilmington tax increment financing and the proposed Community Reinvestment Area abatement | Wilmington City Council approved a tax increment financing agreement for the project on December 18, 2025. It is structured as a non school tax increment financing district. Local school districts keep the revenue they would otherwise get. The city share of property tax from the site rises from about 13.9 percent to about 51.7 percent. The Clinton County Port Authority estimated the development would generate about 1.4 million dollars a year in property tax across all taxing jurisdictions. The city would receive around 675,000 dollars a year of that, or close to 19 million dollars over thirty years. Wilmington News Journal The separate Community Reinvestment Area agreement is Ordinance O-25-73. It would give Amazon Data Services a thirty year property tax abatement tied to an estimated 4 billion dollars of improvements. It had a first reading on December 4, 2025. It was then pulled from the December 18 agenda to slow the process down. Wilmington News Journal Wilmington News Journal Port Authority testimony in July 2026 described the agreement as providing that thirty year abatement. It also said Amazon requested the incentive. Wilmington News Journal | City council approval, which is unsettled. Amazon Data Services bought the 471 acre parcel at 1488 South U.S. 68 for 86.4 million dollars on December 10, 2025. Wilmington News Journal On July 2, 2026 the council voted five to one to hold only a second reading of an ordinance dealing with data centers as a permitted use. Nothing changed that night. WDTN In July 2026 a federal judge in Sharp v. City of Wilmington ordered the city to redo the ordinances that added data centers as a permitted use and rezoned the Cosler Farm site. The judge found the city failed to give legally required public notice. WCPO The project ran under the Amazon search code name Project Galaxy before being renamed Project Apollo. Wilmington News Journal | Pending. A July 2026 federal court order bars the Wilmington planning commission from approving, conditionally approving, or denying the AWS site plan. That bar lasts until council ratifies, replaces, or reenacts Ordinances O-24-70, O-25-36, and O-25-48. Council set public hearings on those three ordinances for August 20, 2026. Wilmington News Journal |
Delaware County
Orange Township near Lewis Center hosts the Cologix COL5 campus, one of the two projects that took the last state sales tax exemption before the June 2026 pause. Signal Ohio Delaware Source
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Delaware County abatement for the Cologix Orange Township project | A ten year, 50 percent property tax abatement from the Delaware County government, for the Cologix COL5 site on Green Meadows Drive. The county also gave an income tax break and a further property tax subsidy. Signal Ohio The project is a 1 billion dollar build on about 25 acres. It would draw twenty five megawatts at first and possibly grow to seventy five megawatts. Phase one is a 135,000 square foot facility expected to finish in fall 2026. Delaware Source The site also shares in the 42.3 million dollar, ten year, 50 percent state sales tax exemption approved June 1, 2026. Columbus Dispatch | Negotiated local agreement described to the Ohio Tax Credit Authority. The state award required Cologix to 1) create ninety full time equivalent jobs and 10 million dollars in new annual payroll by the end of 2028, 2) retain about 5.2 million dollars of payroll at existing sites, and 3) keep the new facilities running at least thirteen years. Signal Ohio Columbus Dispatch | Active. The Delaware County commissioners approved the Community Reinvestment Area agreement as Resolution 25-633 on August 14, 2025. It grants fifty percent for ten years in the Orange Township Community Reinvestment Area. Under that agreement, no exemption may commence after tax year 2030 or extend beyond tax year 2040. Delaware County commissioners journal for August 14, 2025 |
Franklin County
Amazon runs major AI data centers in Hilliard and Dublin under some of the largest property tax abatements in the county, and the New Albany business park extends into the northeast corner. Columbus Dispatch City of Dublin News 5 Cleveland Google announced two more central Ohio centers in 2023, one in Columbus and one in Lancaster in Fairfield County. NBC4 Columbus granted a 100 percent fifteen year Community Reinvestment Area abatement in March 2021 to Magellan Enterprises LLC. That company was later identified as a Google subsidiary. The break was reported to be worth about 54 million dollars. Governing I could not find published terms for the Lancaster abatement. Neither site is itemized here.
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Hilliard abatement for the Amazon data centers | Hilliard offered a fifteen year, 100 percent real estate tax abatement valued at about 5.4 million dollars when it competed for the project in 2015. The package also included wage tax rebates and waived permit fees. Government Technology A January 2024 review of county records found the Hilliard campus was the single biggest property tax abatement beneficiary in Franklin County. The abatement saved Amazon about 4.5 million dollars a year. Columbus Dispatch That archive capture recorded only a redirect, so the figure above cannot be checked from it. The Franklin County auditor reported that Amazon Web Services avoided about 5.4 million dollars in property taxes for two Hilliard data centers in tax year 2024. Columbus Dispatch | Negotiated incentive package approved by the City of Hilliard to win the project. Government Technology | Active. The Franklin County Auditor tax incentive review council report published in December 2025 still counts fourteen Community Reinvestment Area abatements in Hilliard. Those abatements exempt about 209.7 million dollars of value and forgo about 6 million dollars of tax for the year. Franklin County Auditor 2025 tax incentive review council report I could not verify the ending year of the Amazon agreement from a primary source. |
| Dublin abatement and land deal for the Amazon data center | Dublin offered land valued at about 6.8 million dollars, plus performance incentives worth up to 500,000 dollars over ten years. That was its bid for a project valued at about 1.1 billion dollars. The fifteen year, 100 percent property tax abatement reported in that competition came from Orange Township, not from Dublin. Data Center Knowledge | Negotiated agreement with the City of Dublin. Data Center Knowledge | Approved and long since carried out. Dublin won part of the project, and city officials approved the development plans for the seventy acre Dublin site in 2015. Data Center Knowledge Amazon's three central Ohio AI data centers, one of them in Dublin, opened in October 2016. City of Dublin The land and the performance payments were a one time recruitment package rather than a standing program, so no new applicant can claim them. Dublin has since closed that district to new AI data centers. City Council passed Ordinance 33-26 on July 1, 2026, removing AI data centers as permitted or conditional uses in the West Innovation District where the Amazon campus sits. City of Dublin |
Licking County
The largest AI data center cluster in Ohio, with Amazon, Meta, Google, QTS, Microsoft, and Cologix projects around New Albany, Heath, Hebron, Johnstown, and Pataskala. cleveland.com Newark Advocate Signal Ohio
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| New Albany Community Reinvestment Area abatements | Real property tax abatement of up to 100 percent for up to fifteen consecutive years on new building construction. The city also offers tax increment financing and job creation incentive payments. New Albany local incentives Amazon, QTS, and Meta AI data centers each received 100 percent abatements for fifteen years in the New Albany International Business Park. That park straddles the Franklin and Licking county line. News 5 Cleveland The Meta center there carries a 100 percent abatement for fifteen years on a 1.5 billion dollar build. cleveland.com The city council approved a fifteen year break for a 420 million dollar Microsoft center in October 2024. WOSU | Negotiated agreements with the City of New Albany for competitive projects that create new jobs and new payroll. New Albany local incentives | Active. The City of New Albany says it still grants real property tax abatements to new and expanding companies. These normally cover the first ten or fifteen operating years. They run up to thirty years for a project the state designates a megaproject. City of New Albany data center page |
| New Albany 30 year abatement for Amazon Web Services | New Albany City Council approved a thirty year tax abatement in September 2023. It covers close to 440 acres. The Amazon Web Services subsidiary bought that land in January of that year. The city designated it a Community Reinvestment Area. The deal covers at least six more AI data centers east of Columbus. It is expected to produce about 100 new full time jobs. Amazon said it would invest about 7.8 billion dollars in central Ohio AI data centers by the end of the decade. NBC4 | City council approval tied to the Amazon Web Services expansion commitment and the Community Reinvestment Area designation. NBC4 | Approved and still in force. New Albany City Council took up the community reinvestment area agreement with Amazon Data Services as Resolution R-41-2023 at its meeting of September 19, 2023. City of New Albany The six member council passed it unanimously. NBC4 As of March 2026 the abatement was still described as live, at 100 percent for the first fifteen years and 75 percent for the next fifteen. The American Prospect Every active abatement in the city goes to the Tax Incentive Review Council each year, and council then votes to continue it or end it. City of New Albany |
| Johnstown abatement for the Cologix campus | The City of Johnstown granted a fifteen year, 100 percent property tax abatement for the larger of the two Cologix projects. Those two projects won the last state sales tax exemption on June 1, 2026. The Johnstown site sits on about 150 acres. It will draw seventy five megawatts at first and could grow to 176 megawatts. It sits in the same general area as the Intel plant under construction. Signal Ohio NBC4 | Negotiated agreement with the City of Johnstown, described to the Ohio Tax Credit Authority as local support for the project. Signal Ohio | In place, though Johnstown's own approval record is not posted as a linkable document. One Columbus told the Ohio Tax Credit Authority on June 1, 2026 that Johnstown is granting the larger Cologix project a fifteen year, 100 percent property tax abatement. Signal Ohio The Authority approved the state AI data center exemption for the Orange Township and Johnstown sites the same day, at 50 percent for ten years. Ohio Tax Credit Authority The date of the Johnstown council vote could not be confirmed from a public record. |
| Heath agreement with Microsoft | Heath granted Microsoft a 100 percent property tax abatement on improvements for fifteen years in January 2025. Microsoft put in 12 million dollars for Thornwood Drive road improvements. Newark Advocate On June 4, 2026 a Microsoft representative told the Joint Data Center Committee that the company will stop using nondisclosure agreements. The representative said Microsoft will also no longer seek local property tax abatements in Ohio. Columbus Dispatch Toledo Blade That pledge came in committee testimony rather than in any filed instrument. As of August 2, 2026 no public record shows the Heath abatement being rescinded or surrendered. The practical effect on the Licking County sites in New Albany, Heath, Hebron, and Pataskala rests on Microsoft honoring what it said. Google, Meta, and Amazon made no similar pledge. cleveland.com | City council approval of the negotiated development agreement. Microsoft bought the Heath land for 32 million dollars in May 2024. Newark Advocate | Active. Microsoft has construction under way on the Heath AI data center site. Its July 2026 update reports summer work on site preparation, water management, and the substation. Microsoft Heath datacenter construction updates |
Scioto County
County commissioners approved a fifteen year abatement with payments in lieu of taxes in January 2026 for a planned 1 billion dollar Google AI data center at Franklin Furnace. WSAZ Data Center Dynamics
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Franklin Furnace abatement and payments in lieu of taxes for Google | A 75 percent property tax abatement for fifteen years, so Google would pay 25 percent of normal property taxes. Google would also make payments in lieu of taxes starting at 500,000 dollars a year. It would pay additional compensation based on square footage once the developer completes the project. WSAZ The first phase is a 500,000 square foot AI data center on a site of about 792 acres, valued at about 1 billion dollars. Data Center Dynamics Scioto Valley Guardian | Approved by the Scioto County commissioners on January 22, 2026. Google committed to prioritize local trade labor for construction. It described the project as one it was considering rather than one it had committed to build. WSAZ Scioto Valley Guardian Data Center Map listing for the Franklin Furnace site | Active. Documents released under Ohio public records law show the county resolution approving the Community Reinvestment Area agreement with Tilted Gate LLC, and the executed contract itself. The commissioners were authorized to sign after legal review. Portsmouth Daily Times |
Shelby County
Sidney approved a full thirty year property tax abatement in October 2025 for a 3 billion dollar Amazon campus and finished the supporting infrastructure agreements in April 2026. Sidney Daily News City of Sidney proposed data center FAQ
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Sidney abatement for the Amazon data center campus | Sidney City Council approved a thirty year, 100 percent real property tax abatement in late October 2025. The abatement is for Amazon Data Services to build a 3 billion dollar campus on Millcreek Road and South Vandemark Road. Sidney Daily News The abatement is estimated to be worth 180 million to 350 million dollars over its term. In exchange, Amazon committed to seventy five permanent jobs and a payment in lieu of taxes of about 50 million dollars over fifteen years. Data Center Dynamics Stop Ohio Data Centers The campus carries the Amazon code name Project Galaxy. That was the label Amazon Web Services used for a multi site search. JobsOhio circulated that search to local development agencies starting in November 2023. That is why the same name shows up in coverage of sites in other counties. Wilmington News Journal | City council approval of the negotiated agreements with Amazon Data Services. Sidney Daily News On April 27, 2026 the council adopted resolutions 26-26 and 27-26. One is a water and sewer service agreement letting the facility draw up to 1 million gallons a day. The other is an infrastructure development agreement covering about 8 million dollars of road funding from Amazon. City of Sidney proposed data center FAQ Stop Ohio Data Centers | Active. The City of Sidney says the Community Reinvestment Area agreement it adopted as Resolution 80-25 runs for thirty years. No exemption may extend beyond tax year 2065. City of Sidney proposed data center FAQ |
Oklahoma runs its AI data center incentives on two tracks that pull against each other. The state exempts data processing machinery, web search portal purchases including electric power, and digital asset mining gear from sales tax, and the Quality Jobs Program pays cash rebates on new payroll. Oklahoma Department of Commerce Then in 2021 the Legislature cut AI data centers out of the five year property tax exemption for new servers while grandfathering Google at Pryor through 2036. SB 609 (2021) Okla. Stat. tit. 68, § 2902(C)(5) The Frontier Since then the real money has moved to county and city deals that run 25 years, and a 2026 law now makes new large electric loads pay their own grid costs. HB 2992 (2026)
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Computer services and data processing sales tax exemption | Sales and use tax exemption on machinery and equipment bought and used by businesses primarily engaged in computer services and data processing. Okla. Stat. tit. 68, § 1357(21) The Oklahoma Department of Commerce says it covers computers and servers but not electric power. Oklahoma Department of Commerce There is no minimum investment, no job or wage test, and no sunset date written into the exemption itself. Okla. Admin. Code § 710:65-13-54 | Companies classified under SIC groups 7372 and 7373 must earn at least 50 percent of annual gross revenue from out of state buyers. Data processing and hosting companies under SIC group 7374 must earn at least 80 percent. SIC group 7374 maps to NAICS 518210. Oklahoma Department of Commerce Sales to the federal government count as out of state. The company files an annual affidavit with the Oklahoma Tax Commission. Okla. Stat. tit. 68, § 1357(21) Okla. Admin. Code § 710:65-13-54 Neither the statute nor the Tax Commission rule says anything about tenants inside a colocation building. Both tests run on the buyer's own revenue mix. One tenant of a multi tenant AI data center would have a hard time meeting either test. Okla. Admin. Code § 710:65-13-54 The state's own 2023 evaluation found the exemption went unused over the prior five years. Companies pick the Quality Jobs Program instead, and they cannot use both. Incentive Evaluation Commission | Active. The 2026 session left the substance alone. SB 1400 renumbers this paragraph from 21 to 19 effective January 1, 2027, as part of a cleanup of the aircraft exemptions. SB 1400 (2026) Summary of 2026 Tax Legislation |
| Web search portal sales tax exemption | Sales tax exemption on goods, wares, merchandise, tangible personal property, machinery, and equipment sold to a qualifying web search portal located in Oklahoma. Okla. Stat. tit. 68, § 1357(38) Unlike the general data processing exemption, the Department of Commerce says this one reaches electric power. Oklahoma Department of Commerce The web search portal category is narrow by design, and Google has run a campus at Pryor in Mayes County since 2011. | The establishment must be classified under NAICS 519130 and earn at least 80 percent of annual gross revenue from out of state buyers. Okla. Stat. tit. 68, § 1357(38) The Commerce Department also lists NAICS 519290. Oklahoma Department of Commerce The operator applies to the Oklahoma Tax Commission Business Tax Services Division for an exemption letter. A contractor building for a certified entity cannot buy materials tax free under the exemption. Okla. Admin. Code § 710:65-13-650 | Active. SB 1400 renumbers this paragraph from 38 to 35 effective January 1, 2027. The web search portal language itself does not change. SB 1400 (2026) Summary of 2026 Tax Legislation |
| Digital asset mining colocation sales tax exemption | Sales tax exemption for machinery and equipment used in the commercial mining of digital assets at a colocation facility. The statute names servers and computers, racks, power distribution units, cabling, switchgear, transformers, substations, software, network equipment, and electricity. HB 1600 (2024) Sales Tax Institute | The buyer must be engaged in the commercial mining of digital assets using blockchain technology at a colocation facility. Purchases qualify from November 1, 2024 through December 31, 2029. HB 1600 (2024) The condition most summaries leave out sits in the definition of a colocation facility. The site must have signed a load reduction agreement with its electric cooperative, municipality, electric utility, or market operator. That agreement commits the site to cut power use during bad weather or other adverse conditions. Okla. Stat. tit. 68, § 1359(17)(b) The Oklahoma Department of Commerce lists this exemption under NAICS 518210, the same code it uses for AI data centers. Oklahoma Department of Commerce | Active, and it expires December 31, 2029. HB 1600 (2024) |
| Five year ad valorem manufacturing exemption as applied to data centers | Five year exemption from all ad valorem taxes on qualifying new, expanded, or acquired facilities. The state reimburses counties and schools for the lost revenue. Okla. Const. art. X, § 6B For AI data centers the exemption now covers real property only. SB 609 closed the personal property route for NAICS 518210 providers for assets placed in service after December 31, 2021. SB 609 (2021) Okla. Stat. tit. 68, § 2902 A grandfather clause covers an establishment that held a personal property exemption in the five years before November 1, 2021. That establishment can keep exempting new servers placed inside buildings that were already exempt, through December 31, 2036. Okla. Stat. tit. 68, § 2902(C)(5) In practice that company is Google at Pryor. The Frontier | Computer services and data processing establishments qualify under NAICS groups 5112 and 5415 and codes 334611 and 519130 if at least 50 percent of revenue comes from out of state. The other path is NAICS group 5182, which needs at least 80 percent out of state revenue. Okla. Stat. tit. 68, § 2902(B)(1)(c) Oklahoma Department of Commerce Initial applications need a net payroll increase of at least 250,000 dollars in counties under 75,000 people. In counties of 75,000 or more the figure is at least 1,000,000 dollars. Applications filed from January 1, 2023 must pay new direct jobs at or above the Quality Jobs average wage and offer a basic health benefits plan. Okla. Stat. tit. 68, § 2902(C) The application goes to the county assessor every year by March 15. Okla. Stat. tit. 68, § 2902(E) Oklahoma Department of Commerce | Active for real property, closed to new AI data center equipment after 2021, and Google's grandfather runs to 2036. Okla. Stat. tit. 68, § 2902(C)(5) No 2026 tax act changed it, though HJR 1087 sends a constitutional amendment on the reimbursement to a vote as State Question 844. Summary of 2026 Tax Legislation |
| Oklahoma Quality Jobs Program | Quarterly cash rebates of up to 5 percent of new payroll for up to 10 years. Oklahoma Department of Commerce The Department of Commerce lists data center operations as an eligible activity. Oklahoma Department of Commerce | The company must reach 2.5 million dollars in new annual payroll within three years and meet an average wage threshold. A fully executed contract with the Department of Commerce must be in place before any new job counts toward new taxable payroll. Quality Jobs Program Guidelines Oklahoma Department of Commerce A company in Quality Jobs cannot also claim the computer services and data processing sales tax exemption. That is the main reason the exemption sits unused. Incentive Evaluation Commission | Active. Oklahoma Department of Commerce |
| Investment and New Jobs Tax Credit | Five year income tax credit on the greater of 1 percent a year of investment in new depreciable property or 500 dollars per new job. Both figures double to 2 percent and 1,000 dollars per employee if the facility sits inside an enterprise zone. Oklahoma Department of Commerce AI data centers have used credits like this at scale. The Frontier reports Google claimed 113.9 million dollars in Oklahoma income tax credits since 2017 under a program that rewards job creation and investment. That reporting does not name the program or tie the credits to a county. The Frontier | The credit has three conditions. 1) The facility must qualify as a manufacturing facility under the statute. 2) Investment in new depreciable property must be at least 50,000 dollars. 3) The employee count must not drop. Oklahoma Department of Commerce Whether Oklahoma has treated those AI data center operations as qualifying under THIS credit is not established by the reporting, which names no program. The Frontier | Active. Oklahoma Department of Commerce |
| Data Center Customer Ratepayer Protection Act of 2026 | This one is not an incentive. It makes new large electric loads pay the grid costs they cause, so those costs do not shift to households and small businesses. This is the main 2026 change a developer needs to know about. HB 2992 (2026) It applies to every retail electric supplier in the state, including investor owned utilities, cooperatives, municipal utilities, and public power utilities. HB 2992 (2026) OG&E and PSO both supported it, and both are pursuing large load tariffs at the Corporation Commission. KOSU | A large load customer is one of three things. 1) A new AI data center. 2) A new cryptocurrency mining operation. 3) A new facility whose primary function is artificial intelligence computing. The customer must contract to add 75 megawatts or more of load after July 1, 2026. That threshold is measured per facility or in aggregate behind a single point of interconnection. Behind the meter generation projects are carved out. Every electric supplier must maintain separate terms, conditions, and tariffs for these customers. Those terms include credit requirements and other measures making sure the customer covers costs that would otherwise go unrecovered if it leaves or cuts load. The minimum term of service is 10 years. A large load customer or its developer that buys land outside an industrial development park or a municipality must send notice by certified mail within 60 days after the purchase. The notice goes to the Corporation Commission, the county commissioners, and abutting property owners. Missing that deadline carries an administrative penalty of 1,500 dollars a day for each violation. HB 2992 (2026) The House passed the bill 92 to 2 on March 23, 2026. The Senate passed it 46 to 0 on April 28. Both chambers adopted the conference report on May 5, by 84 to 0 in the House and 48 to 0 in the Senate. Gov. Stitt approved it on May 11, 2026. HB 2992 bill history KGOU Oklahoma Senate Rep. Brad Boles of Marlow wrote the bill. Sen. Grant Green of Wellston carried it in the Senate. Thirty six lawmakers from both parties signed on as co authors. Oklahoma House of Representatives | Enacted in 2026 and effective July 1, 2026, codified at Okla. Stat. tit. 17, §§ 900 through 906. HB 2992 (2026) HB 2992 bill history |
County and local programs
Mayes County
Google's Pryor campus at MidAmerica Industrial Park keeps state paid five year property tax exemptions on new servers through 2036 under a grandfather clause written for it. Okla. Stat. tit. 68, § 2902(C)(5) The Frontier
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Grandfathered five year ad valorem exemptions for Google at Pryor | Google can keep claiming state reimbursed five year ad valorem exemptions on new servers and equipment placed inside previously exempt buildings at its Mayes County campus. This runs for assets placed in service through December 31, 2036. Okla. Stat. tit. 68, § 2902(C)(5) Okla. Stat. tit. 68, § 2902 Oklahoma covered more than 239 million dollars of ad valorem tax on the company's Mayes County property over the past decade. That figure includes 45.9 million dollars in 2021 alone. That made Google the largest single beneficiary of the state reimbursement program. The Frontier Google reports investing 4.4 billion dollars in the county. The Frontier In August 2025 it announced a further two year 9 billion dollar Oklahoma investment that includes expanding the Pryor campus. Google | Only a NAICS 518210 establishment that was granted a personal property exemption within five years before November 1, 2021 qualifies. The new equipment must sit inside real property improvements that were already exempt before that date. Okla. Stat. tit. 68, § 2902(C)(5) In practice that describes only Google's campus at MidAmerica Industrial Park in Pryor. New buildings there no longer qualify for fresh personal property exemptions. The Frontier | Live right now. The Oklahoma Tax Commission's 2026 report on exempt manufacturing reimbursements lists Google LLC-MYALL LLC in Mayes County across all five exemption years for tax year 2025. The listing is worth 34,187,160 dollars. Oklahoma Tax Commission 2026 annual report on exempt manufacturing reimbursements It sunsets with personal property placed in service after December 31, 2036, and no later equipment qualifies. Okla. Stat. tit. 68, § 2902 |
Muskogee County
Muskogee is Oklahoma's newest AI data center market. On August 11, 2025 the county adopted a plan with four 25 year districts. The districts carry a full ad valorem exemption plus payments in lieu of taxes. The city approved a separate 25 year incentive for a four building campus in April 2025. Google announced two campuses near Summit and Council Hill in November 2025. Muskogee County minutes for August 11, 2025 Muskogee Phoenix Port Muskogee Google said the two campuses come with new long term power purchase agreements adding about 600 megawatts of clean energy to the Oklahoma grid. Port Muskogee
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Springboard Data Center Economic Development Project Plan, Muskogee County | Four county incentive districts cover about 320 acres, each running 25 years. Inside a district, all qualifying new investment in real and personal property is 100 percent exempt from ad valorem tax. Springboard project plan Notice of public hearings In place of taxes the company pays an annual amount beginning at 1.35 million dollars per AI data center. That amount rises 1 percent a year. There is also an annual community investment payment beginning at 1.7 million dollars. The recipients are 1) Muskogee County, 2) the county health department, 3) the county emergency medical service, 4) the Eastern Oklahoma District Library System, 5) Midway Independent School District Number I-27, and 6) Indian Capital Technology Center District Number 4. The plan's projections show about 38.1 million dollars of payments in lieu of taxes from phase one alone over 25 years. Springboard project plan | The project is proposed by an AI data center operator acting through a subsidiary called Acacia House Group LLC. The plan covers at least one phase and up to four. Each phase is an estimated 1 billion dollars of private investment. Phase one must start within two years of approval of the plan. If phases two, three, or four have not started within 10 years of adoption, those districts terminate. Each district takes effect on the January 1 after the AI data center in it is finished. The outside date is January 1 of the tenth anniversary year. The site sits inside an enterprise zone designated by the Oklahoma Department of Commerce. Springboard project plan The county held public hearings on July 21 and August 4, 2025. The Board of County Commissioners approved the incentive district resolution unanimously on August 11, 2025. The Eastern Oklahoma District Library System board took up the tax incentive agreement the same day. Notice of public hearings Muskogee County minutes for July 21, 2025 Eastern Oklahoma District Library System agenda The July 21, 2025 hearing ran from 9:02 to 9:20 in the morning and the county took no action in it. Lisa Hardin of the Center for Economic Development Law, based in Oklahoma City, gave the presentation. Muskogee County minutes for July 21, 2025 The county documents never name the end user. Independent AI data center trackers list the Springboard buildings as Google's. Cleanview | Pending. No incentive district under this plan has taken effect yet. Each one starts on the January 1 after its AI data center is substantially complete. The districts for phases two, three, and four terminate if those phases have not begun within 10 years of adoption. Springboard project plan The Oklahoma Department of Commerce keeps a statewide list of incentive districts, last updated January 12, 2026. That list does not carry these county districts. Oklahoma Tax Increment Financing and Incentive Districts 2026 Update |
| City of Muskogee 25 year data center tax incentive | A 25 year local tax incentive for a developer building four AI data centers on 419 acres east of 32nd Street and south of West 43rd Street South. The city council approved it in April 2025 after two public hearings. Muskogee Phoenix | The applicant was Pioneer Trail LLC. The city acted under the Oklahoma Local Development Act. A special meeting on April 3, 2025 presented an analysis of positive and negative impacts, and a further hearing followed on April 14, 2025. City of Muskogee agenda packet | In force since April 14, 2025. The council passed Ordinance No. 4258-A that day, adopting the Scissortail Data Center Economic Development Project Plan. It voted the emergency clause separately, so the ordinance took effect immediately. Muskogee Ordinance No. 4258-A The districts themselves have no establishment date yet. Each one starts at the earlier of the January 1 after its AI data center is finished or January 1, 2035, then runs 25 years. Oklahoma Tax Increment Financing and Incentive Districts 2026 Update |
| Google data center campuses near Summit and Council Hill | Google announced on November 20, 2025 that it will build two AI data center campuses in Muskogee County. The campuses are part of its two year 9 billion dollar Oklahoma investment. The announcement came together with long term power purchase agreements expected to add about 600 megawatts of clean energy to the grid. Those agreements include the Rush Springs and High Spring solar projects operated by NextEra Energy Resources. Port Muskogee News On 6 In April 2026 OG&E announced a contract with Google. Under it Google pays 100 percent of the cost to connect three AI data center sites in Muskogee and Stillwater to the grid. OG&E press release, April 30, 2026 | I found no incentive terms specific to this announcement. Muskogee County, the City of Muskogee, and Port Muskogee all joined it. Port Muskogee No public document I read as of August 2, 2026 says whether these campuses sit inside the county Springboard districts or the City of Muskogee incentive area. The county plan identifies the applicant only as Acacia House Group LLC. Springboard project plan | Active and in early construction. Muskogee County General Counsel John Tyler Hammons said on November 25, 2025 that phase one had begun on both campuses. FOX23 report carried by KRMG On April 30, 2026 OG&E announced electric service agreements to power the two Muskogee AI data centers and a third in Stillwater. OG&E Those agreements must be approved by the Oklahoma Corporation Commission before OG&E can serve the sites. OG&E OG&E filed the related large load tariff with the commission on June 17, 2026, and review is expected to take months. KOSU Google announced 800,000 dollars in grants to Muskogee County schools and nonprofits in July 2026. OK Energy Today I found no county record as of August 2026 showing the project denied, withdrawn, or expired. |
Payne County
Google is building an AI data center campus in Stillwater under a 25 year local tax incentive agreement. The agreement exempts 100 percent of the ad valorem tax on new investment. In place of that tax Google makes annual payments in lieu of taxes to the schools, the technology center, the county, and the county health department. Stillwater Data Center Economic Development Project Plan
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Stillwater Data Center Economic Development Project Plan and tax incentive agreement | Six incentive districts, one for each potential phase, each running 25 years. Inside a district, all qualifying new investment in real and personal property is 100 percent exempt from ad valorem tax. The plan covers a project area of about 386.698 acres inside the City of Stillwater. Stillwater Data Center Economic Development Project Plan That sits within a reported 770 acre Google land holding near Highway 177 and East Richmond Road. Southwest Ledger In place of taxes the company pays an initial annual amount of about 867,568 dollars per phase, rising 1 percent a year. The split is roughly 1) 624,023 dollars to Stillwater Public Schools, 2) 135,599 dollars to Meridian Technology Center, 3) 89,985 dollars to Payne County, and 4) 17,961 dollars to the county health department. Stillwater Data Center Economic Development Project Plan Stillwater voters separately approved an OG&E franchise on November 5, 2024 to supply high voltage power. The city projects about 2.25 million dollars per AI data center per year in franchise fees once the project is fully operational. That comes on top of annual community betterment payments. City of Stillwater | Each phase is a building of about 300,000 square feet and at least 500 million dollars in private investment. Six phases would run up to 3 billion dollars. All six incentive districts must be made effective within 10 years of adoption of the project plan. Stillwater Data Center Economic Development Project Plan Reporting at the time said the company must begin construction on the final phase within 10 years. The city council has approved the first two phases. The later phases would need new city water supply investment. Southwest Ledger All local taxing jurisdictions approved the agreement. The Payne County commissioners voted 2 to 1, and the dissent rested on the length of the deferment. Southwest Ledger The project ran under the code name Project Rohan through a subsidiary called Kipper LLC before Google was identified. Southwest Ledger City of Stillwater | Pending. The city held the two required public hearings on October 7 and November 4, 2024. Ordinance No. 3546 had its first reading on October 7. City of Stillwater No district is paying out yet. All six must be made effective within 10 years of adoption of the project plan. None of them appears in the Oklahoma Department of Commerce statewide list of incentive districts, last updated January 12, 2026. Stillwater Data Center Economic Development Project Plan Oklahoma Tax Increment Financing and Incentive Districts 2026 Update |
Tulsa County
Oklahoma's busiest local incentive market. The City of Tulsa granted an 85 percent abatement for 25 years for the Meta AI data center in east Tulsa, and Tulsa County granted a full 25 year exemption for Project Clydesdale west of Owasso. Project Anthem project plan Oklahoma Department of Commerce Project Clydesdale tax incentive agreement At the same time the city has paused new AI data center building permits inside city limits through the end of 2026. Tulsa Flyer KTUL
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Project Anthem tax incentive district for the Meta data center in east Tulsa | An 85 percent ad valorem tax abatement for 25 years inside a city created incentive district covering about 340 acres near East 11th Street and the Creek Turnpike. Project Anthem project plan Meta named itself as the developer on April 21, 2026 and broke ground the same day. The AI data center is a 1 billion dollar build of more than 2 million square feet, targeting 2028 operations. Tulsa Flyer Oklahoma Department of Commerce Meta will pay the City of Tulsa 62.5 million dollars in lieu of taxes. It will also fund about 25 million dollars of public infrastructure on the site. The 15 percent of ad valorem tax still collected is expected to exceed 36 million dollars over the term. KJRH | The Tulsa City Council approved the Project Anthem Economic Development Project Plan and its supporting incentive district in 2024 under the Oklahoma Local Development Act. The Center for Economic Development Law drafted the plan. The council deferred naming the district and setting its creation date. Project Anthem project plan Tulsa City Council documents The City of Tulsa and the Tulsa Authority for Economic Opportunity administer the plan. The city's later moratorium does not apply to phases one and two of this project. Tulsa Flyer | In place but not yet running. The Local Development Act tax exemption agreement went to the Urban and Economic Development Committee on April 17, 2024. It went to the full City Council on May 1, 2024. The 85 percent exemption runs 25 years, starting only once the tax incentive district is activated. Tulsa City Council documents Meta broke ground on April 21, 2026 and targets 2028 operations, so nothing has been abated yet. Tulsa Flyer Oklahoma Department of Commerce |
| Project Clydesdale tax incentive districts near Owasso | A 100 percent ad valorem property tax exemption for 25 years per phase on all new investment by NAICS 518210 establishments inside four county created incentive districts. The project is an AI data center of roughly 1 billion dollars in unincorporated Tulsa County west of Owasso, on about 506 acres. Project Clydesdale tax incentive agreement Oklahoma Tax Increment Financing and Incentive Districts 2026 Update Beale Infrastructure, a developer backed by Blue Owl, broke ground on October 30, 2025. The end user has still not been named publicly. Tulsa Flyer Beale Infrastructure Data Center Dynamics | The Tulsa County Board of County Commissioners adopted the project plan unanimously on September 29, 2025. That followed two public hearings and a September 3 finding by the Tulsa Metropolitan Area Planning Commission that the plan was consistent with the comprehensive plan. Public Radio Tulsa Project Clydesdale tax incentive agreement The affected taxing entities, including Owasso Public Schools and Tulsa Tech, approved it. FOX23 Qualifying property must belong to establishments under US Industry 518210 of the 2017 NAICS Manual and sit inside the districts. Project Clydesdale tax incentive agreement The City of Tulsa moratorium does not reach this project because it sits outside city limits. Tulsa Flyer | In place but not yet running. The Oklahoma Department of Commerce list, last updated January 12, 2026, shows every Tulsa County district under this project with no establishment date set. Each one starts at the earlier of the January 1 after its AI data center is finished or January 1, 2035, then runs 25 years. Oklahoma Tax Increment Financing and Incentive Districts 2026 Update |
Oregon charges no general sales or use tax, so the whole incentive fight here is about local property tax. Oregon Department of Revenue AI data centers stack local property tax exemptions running 3 to 15 years through two enterprise zone programs and the Strategic Investment Program. ORS 285C.400 to 285C.420 Business Oregon Business Oregon standard enterprise zone In 2026 the Legislature shut the standard enterprise zone to new AI data center authorizations until late 2027. HB 4084 enrolled Oregon Laws 2026 chapter 50 Utility regulators then put the biggest computing loads into their own electricity rate class, which cuts the other way and raises the cost of operating here. PUC Order 26-154
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| No sales or use tax on data center equipment | Oregon levies no state or local general sales tax, so servers, network gear, cooling equipment, and construction materials all arrive untaxed. Oregon Department of Revenue No special AI data center exemption exists in Oregon because there is nothing to exempt anyone from. Tax Fairness Oregon | None. The treatment is automatic for every buyer in the state, including colocation operators and the tenants renting space from them. Oregon Department of Revenue | Active and permanent. Oregon voters have rejected sales taxes at the ballot 10 times since ratifying a constitutional amendment against one in 1910. Oregon Department of Revenue Tax Foundation |
| Standard Enterprise Zone property tax abatement | Full abatement of local property tax on qualified new buildings and equipment for 3 years. The local zone sponsor can extend that term by written agreement. Business Oregon Qualified property covers machinery, equipment, and personal property installed on land the firm owns or leases. Land itself is never exempt. HB 4084 section 12 amending ORS 285C.180 Oregon law names ORS 285C.050 to 285C.250 the Oregon Enterprise Zone Act. ORS chapter 285C | An eligible traded sector firm has to apply for authorization under ORS 285C.140 before site preparation starts. Business Oregon Employment generally has to rise to the greater of 110 percent of the firm annual average or that average plus one employee. HB 4084 enrolled A school support fee of 15 to 30 percent of the abated taxes applies in the extension years. Business Oregon HB 4084 now bars any new authorization for an AI data center project until 90 days after the 2027 regular session adjourns. When AI data centers come back they get the basic 3 years only. The same act permanently blocks extensions for data center property. HB 4084 sections 9 and 11b Davis Wright Tremaine | The program itself sunsets under ORS 285C.255 and runs through mid 2032. ORS 285C.255 The separate AI data center bar took effect on the 91st day after the 2026 session adjourned sine die on March 6, 2026. That computes to June 5, 2026. The bar lifts 90 days after the 2027 session ends. HB 4084 section 17 Oregon Legislature session dates Outside counsel reads that date as June 5, 2026 while the city of Hillsboro and local press use June 6, 2026. That one day gap matters only to applications filed in that window. Davis Wright Tremaine Hillsboro work session materials |
| Long Term Rural Enterprise Zone exemption | Full local property tax exemption for 7 to 15 consecutive tax years under a written agreement with the local sponsors. The exemption also runs while the facility is under construction. ORS 285C.409 This is the program behind the Amazon, Meta, and Apple deals in eastern and central Oregon. Business Oregon project list Business Oregon Commission agenda item The program statutes run from ORS 285C.400 to 285C.420. The chapter groups them under long term tax incentives for rural enterprise zones. ORS chapter 285C | Facility cost has to exceed the lesser of 25 million dollars or 1 percent of the county taxable real market value. ORS 285C.409 ORS 285C.412 The firm has to hire at least 75 full time employees. That floor drops to 10 in counties of 10,000 people or fewer and 35 in counties of 40,000 or fewer. Average compensation has to reach 150 percent of the county average wage, or 130 percent in a qualified rural county. Legislative Policy and Research Office issue brief ORS 285C.412 Sponsors can negotiate extra annual fees. A school support fee of 15 to 30 percent of the abated taxes starts in year six. Business Oregon ORS 285C.405 and 285C.067 | Active and outside the 2026 moratorium. Section 11b of HB 4084 is written only against authorization under ORS 285C.140. That is the standard program, so section 11b does not reach this one. HB 4084 section 11b Outside counsel and the Oregon Capital Chronicle both report that the long term rural program and the Strategic Investment Program stay open to AI data centers. Davis Wright Tremaine Oregon Capital Chronicle The Oregonian valued those two untouched breaks at 365 million dollars to AI data centers this year. The standard program that the bar does reach came to 85 million dollars. The Oregonian |
| Strategic Investment Program | A 15 year property tax exemption on project value above a taxable base, available to large traded sector investments anywhere in the state. ORS 307.123 In rural areas the taxable base runs 1) 40 million dollars for projects of 500 million dollars or less, 2) 75 million dollars for projects between 0.5 and 1 billion dollars, and 3) 150 million dollars above 1 billion dollars. The urban base is 102.9 million dollars from July 1, 2026. Every base grows 3 percent a year. Business Oregon Google and Amazon both run Oregon AI data centers under this program. Business Oregon Commission minutes Business Oregon Commission agenda item The program statutes run from ORS 285C.600 to 285C.635. ORS chapter 285C | The program asks for three things. Those are 1) a minimum project cost, 2) county approval, and 3) an eligibility determination by the Oregon Business Development Commission. The cost floor is 43.4 million dollars in rural areas and 162.8 million dollars elsewhere. Business Oregon The company keeps paying property tax on the taxable base. It also adds an annual community service fee. The fee runs 25 percent of the taxes the exemption saves, capped at 3 million dollars a year and adjusted for inflation. The cap is 3.167 million dollars for the 2026-27 tax year. ORS 285C.609 Business Oregon An older administrative rule still shows different caps. It gives 2.5 million dollars for projects the Commission determined on or after October 6, 2017. Before that date it gives 500,000 dollars, or 2 million dollars for an urban project. OAR 123-623-1900 The exemption is revoked if the fee goes unpaid. ORS 307.123 | Active and untouched by the 2026 moratorium. That bar reaches only standard enterprise zone authorizations. HB 4084 section 11b Davis Wright Tremaine |
| Data center exclusion from central assessment | Keeps AI data centers out of Oregon central assessment. Under that regime the state values a company as one whole unit. It can also pull intangible property such as brand value into the tax base. ORS 308.518 Stoel Rives The statute carries an express legislative intention to exclude from central assessment the property of qualifying companies that own or operate data centers. SB 611 enrolled The 2015 law followed Amazon putting a fifth data center at the Port of Morrow on hold over exactly that intangibles risk. Data Center Dynamics | The company has to fit the data center test the 2015 act carried into ORS 308.516. Property other than data centers has to cost no more than 10 percent of the data center property. The act struck the earlier requirement of a written enterprise zone abatement agreement, so the protection applies on its own terms with no application to file. SB 611 enrolled The 2014 Comcast decision that prompted the act read the central assessment statute to reach any business providing data transmission services. Stoel Rives | Enacted in 2015 and still active. ORS 308.518 The 2015 law followed a 2014 Oregon Supreme Court decision that defined data transmission services broadly for central assessment. Stoel Rives |
| Long term enterprise zone facilities corporate excise tax credit | A corporate excise tax credit equal to 62.5 percent of the payroll costs attributable to employment at a facility holding a long term rural enterprise zone exemption. The credit is capped at the qualified tax liability apportioned to that facility. ORS 317.124 Part of the tax paid by a claimant is routed into the Long Term Enterprise Zone Fund rather than the general fund. So the credit moves money to rural development instead of simply forgiving it. ORS 317.129 | The taxpayer has to own a facility exempt under ORS 285C.409. The credit is claimed on Schedule OR-LTEZ. ORS 317.124 Schedule OR-LTEZ instructions | Closed to new projects. The credit rides on the long term rural exemption. ORS 317.124 ORS 285C.409 The firm had to obtain certification for that exemption on or before June 30, 2018. So it reaches only the eastern and central Oregon AI data centers certified by that date. ORS 285C.408 |
| POWER Act large energy user rate class | This one is a cost rule, not an incentive. It walls AI data center power costs off from everyone else so residential ratepayers stop covering the growth. Climate Solutions Plan on higher power bills in Oregon, not lower ones. OPB | The act creates a separate rate class at investor owned utilities for data centers and cryptocurrency operations. It reaches a facility that can use 20 megawatts or more and is primarily engaged in the activity under NAICS code 518210. Those customers 1) sign contracts of at least 10 years, 2) pay for grid investments even if operations ramp down or the site closes, and 3) pay an excess demand charge when they exceed their energy allocation. Oregon Public Utility Commission Climate Solutions PUC Order 26-154 The commission adopted the Portland General Electric rate design in Order 26-154 on May 7, 2026. It created Schedule 96 for customers in NAICS code 518210. PUC Order 26-154 A parallel large load tariff for Pacific Power came out of docket UE 433. Oregon Public Utility Commission The commission took extra time on the Portland General Electric compliance filing in June 2026 to prevent errors. Oregon Public Utility Commission media release It then approved a 29.7 percent rate increase for the class on July 7, 2026. OPB The act is House Bill 3546 from the 2025 session. The Legislature titled it a measure relating to large energy use facilities. It was enacted as chapter 323 with an emergency clause, so it took effect on passage. HB 3546 overview | Enacted in 2025 and in force at Portland General Electric as of July 2026. OPB PUC Order 26-154 |
| HB 4084 data center moratorium and FastTrack permitting | The 2026 economic development package from Governor Kotek 1) widened standard enterprise zone extensions from two additional years to as many as ten when the sponsoring jurisdiction asks, 2) added alternative performance criteria in place of the hiring tests, and 3) set up a FastTrack permitting program under a new Joint Permitting Council. HB 4084 overview HB 4084 enrolled AI data centers are carved out of all three. Data center property cannot take any extension under ORS 285C.160 and cannot use the alternative criteria under ORS 285C.200. HB 4084 enrolled OPB | Section 11b says an eligible business firm may not be authorized under ORS 285C.140 with respect to property consisting of a data center project. That bar runs until 90 days after the 2027 regular session adjourns sine die. Section 11c repeals the bar on January 2, 2029. HB 4084 enrolled Section 17 sets the effective date at the 91st day following adjournment sine die. Adjournment fell on March 6, 2026, so the bar started June 5, 2026. HB 4084 overview Oregon Legislature session dates Projects authorized before that keep what they were given. Davis Wright Tremaine The act never defines data center project, a gap I confirmed by reading the enrolled text end to end. So the edges of the bar are left to Business Oregon and the Department of Revenue to work out. HB 4084 enrolled | Enacted in 2026 as chapter 50, Oregon Laws 2026, and in force. HB 4084 overview |
| Oregon Data Center Advisory Committee | Not an incentive. This is the study that shapes whatever the 2027 Legislature does about AI data center tax breaks, siting, power, and water. So anyone planning an Oregon project should be reading its materials. Oregon Department of Energy Davis Wright Tremaine | A seven member committee the Governor convened in January 2026 to recommend policy on AI data center growth and other large industrial loads. The Oregon Department of Energy staffs it. Oregon Capital Chronicle It met through 2026 and took up land use in an April 24, 2026 session. It set draft report deliberation for August 4, 2026. A final public listening session is scheduled for September. Oregon Department of Energy Outside counsel counted four committee meetings and two listening sessions by June 2026. Davis Wright Tremaine | Active. The final report and recommendations are expected in the fall of 2026. Oregon Department of Energy Davis Wright Tremaine |
County and local programs
Crook County
Meta and Apple built large Prineville campuses under 15 year rural enterprise zone exemptions that kept those facilities off the property tax rolls. Cascade Business News The Oregonian Business Oregon Commission agenda item
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Long term rural enterprise zone exemptions for Meta and Apple in Prineville | Full 15 year property tax exemptions on the Facebook and Apple campuses. The Crook County Court and the city of Prineville approved them as zone sponsors. Cascade Business News Business Oregon Commission agenda item The county court passed the 15 year long term rural exemption for Facebook on August 26, 2015. The Oregonian Statewide, a study reported in August 2025 found corporate property tax exemptions cost Oregon schools 275 million dollars in a single year. AI data centers drove the growth. Oregon Capital Chronicle | The long term rural enterprise zone investment, hiring, and wage tests, plus negotiated fees. Prineville and Crook County arranged project fee payments around the Apple project to support local fire and rescue. City of Prineville Resolution 1392 ORS 285C.409 The governing sections are ORS 285C.400 to 285C.420. ORS chapter 285C | Live. Business Oregon still carries five Prineville long term rural exemptions on its current facilities list. Three are for the Facebook entity Vitesse LLC and two are for Apple. Business Oregon project list Each was set locally at 15 years. The first exemption years run from 2012-13 through 2019-20. Every one of the five booked property tax savings for the firm in 2024-25. So the newest of them does not run out until the 2030s. Business Oregon project list |
Morrow County
The Amazon cluster around Boardman runs on Columbia River Enterprise Zone deals that Morrow County valued at roughly 1 billion dollars in abated taxes, the largest known subsidy award in Amazon history. The Oregonian Good Jobs First
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Columbia River Enterprise Zone long term abatements for Amazon Web Services in Boardman | Full 15 year property tax exemptions on Amazon Web Services AI data centers. Morrow County, the Port of Morrow, and the city of Boardman sponsor them jointly. Negotiated annual fees flow to local governments. Morrow County Port of Morrow commissioners signed off in May 2023 on a package covering five more AI data centers. Morrow County valued that package at about 1 billion dollars. Amazon already had four large facilities in the county. The Oregonian OPB Good Jobs First called that award the largest known economic development subsidy in Amazon history. Good Jobs First Amazon still paid more than 19 million dollars in county property taxes in 2025 on the facilities that had aged out of exemption. Hermiston Herald | Long term rural enterprise zone rules govern. The statute asks for only 10 full time jobs per project, alongside the wage tests. That lighter floor applies to a facility costing more than 200 million dollars and sited 10 or more miles from Interstate 5. ORS 285C.409 ORS 285C.412 The county enterprise zone page puts the negotiated fee rates between 15 and 30 percent of the taxes otherwise owed. Morrow County The governing sections are ORS 285C.400 to 285C.420. ORS chapter 285C | Live and still phasing in. Business Oregon lists eight Amazon long term rural exemptions in the Columbia River zone, each set locally at 15 years. Business Oregon project list Three of the eight were already on the roll and saved the firm property tax in 2024-25. The largest of those ran about 35.8 million dollars on the PDX 90 and 91 facilities. The other five carry first exemption years from 2025-26 through 2028-29. So the last of them runs into the 2040s. Business Oregon project list |
| Strategic Investment Program project for Amazon near Boardman | Amazon brought a project near Boardman to the Oregon Business Development Commission in 2023 under the Strategic Investment Program. That program exempts project value above a taxable base for 15 years. In exchange the company pays tax on that base and a capped community service fee. Business Oregon Commission agenda item The Commission approved it on June 9, 2023 with none opposed, after Morrow County had held its own public hearing and signed off. Staff told the Commission the site sat outside the enterprise zone and the project would add 80 jobs. Business Oregon Commission minutes | Rural projects need at least 43.4 million dollars in cost, county approval, and an eligibility determination from the state Commission. Business Oregon The Commission attaches no ongoing obligation to keep the jobs. Staff confirmed that on the record when the chair asked. Business Oregon Commission minutes The program statutes run from ORS 285C.600 to 285C.635. ORS chapter 285C | Live. The state record of Commission eligibility determinations 1) lists the project as ADS Bombing Range Road in Boardman, 2) puts the estimated investment at 2.37 billion dollars, and 3) sets the first tax year of exemption at 2024 on a 15 year term. So it runs into the late 2030s. Oregon Strategic Investment Program record |
Umatilla County
Umatilla County and the cities of Hermiston and Umatilla handed Amazon 15 year abatements plus negotiated payments on four new AI data centers in 2022. Hermiston Herald
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Long term rural enterprise zone agreement and payments in lieu of taxes for Amazon Web Services | Fifteen years of property tax exemption on four new Amazon Web Services AI data centers near Hermiston and Umatilla. The county board and both city councils approved them in the fall of 2022. Hermiston Herald Capital Press The deals came paired with negotiated payments in lieu of taxes to the local sponsors. Data Center Knowledge An earlier 2019 Hermiston agreement carried a minimum Amazon investment of 200 million dollars. Northwest News Network | The long term rural enterprise zone investment, job, and wage tests, plus whatever payment terms sit in the written abatement agreement. That agreement here also covers contributions toward voter approved local bonds. Hermiston Herald Capital Press ORS 285C.409 The governing sections are ORS 285C.400 to 285C.420. ORS chapter 285C | Live and still phasing in. Business Oregon lists six Amazon long term rural exemptions across the Greater Umatilla and Hermiston zones, each set locally at 15 years. Business Oregon project list Two of the six were on the roll in 2024-25 and saved the firm about 2.7 million dollars and 3.5 million dollars. The other four carry first exemption years of 2026-27, 2027-28, 2028-29, and 2029-30. So the last of them runs into the 2040s. Business Oregon project list |
Wasco County
The Google campuses in The Dalles run on a stack of enterprise zone agreements plus a 2021 Strategic Investment Program deal, and Google is now the largest taxpayer in the county. City of The Dalles Columbia Community Connection
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Wasco County joint enterprise zone agreements with Google in The Dalles | Temporary full property tax abatements on Google buildings and equipment under agreements sponsored by the city of The Dalles and Wasco County. The agreements run from the first Google campus in Oregon through later expansions such as the 2013 deal. City of The Dalles The Oregonian | Investment in qualified property inside the joint enterprise zone, plus the job and payment terms negotiated in each individual agreement. City of The Dalles The zone operates under ORS 285C.050 to 285C.250, the sections Oregon law names the Oregon Enterprise Zone Act. ORS chapter 285C | Part expired, part still running. The city says the first enterprise zone agreement was made in 2005 and that abatement has expired. The second and third were made in 2013 and 2015. They expire in the 2031-32 and 2034-35 tax years. City of The Dalles Business Oregon still carries both of the later Google agreements on its current facilities list. Property tax savings for the firm ran about 5.1 million dollars and 21 million dollars in 2024-25. Business Oregon project list |
| Strategic Investment Program agreement covering the newer Google data centers | Up to 15 years of property tax relief on as many as two new Google AI data centers under a 2021 agreement among the city, Wasco County, and the state. OPB City of The Dalles Google pays half of assessed property tax on the first project and 60 percent on the second. Reporting also describes an upfront payment of about 1.7 million dollars and roughly 1 million dollars a year after that. The OPB article cited here now serves only a headline and no body, so those payment figures cannot be checked against it. OPB The River Road facility went live in 2025. It threw off about 9.8 million dollars in Wasco County taxes and fees in its first year. That came even with taxable value capped near 100 million dollars against a total value near 1.2 billion dollars. All Google property in the county paid close to 13 million dollars in 2025. Columbia Community Connection | The program minimum investment and a state Commission eligibility determination, plus the negotiated payment schedule written into the 2021 agreement. Business Oregon City of The Dalles The program statutes run from ORS 285C.600 to 285C.635. ORS chapter 285C | Live. The state record of Commission eligibility determinations shows Design LLC, Google LLC, and Moraine Industries approved on December 17, 2021 for two The Dalles projects. Each carries an estimated 600 million dollars and a 15 year term. The first exemption year was still to be determined when the Commission acted. Oregon Strategic Investment Program record The city lists the 2021 Strategic Investment Program agreement among its current Google agreements and calls it a 15 year tax break on property. City of The Dalles |
Washington County
Hillsboro is the colocation hub of Oregon, where the city enterprise zone gives AI data centers full abatement for 3 to 5 years. City of Hillsboro City of Hillsboro data centers page Business Oregon Commission agenda item The rush to file before the state moratorium set off a local backlash and a lawsuit. Oregon Capital Chronicle
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Hillsboro Enterprise Zone abatements for data centers | Full property tax abatement for 3 to 5 years on new buildings and equipment inside the Hillsboro Enterprise Zone. AI data centers use it routinely. City of Hillsboro Firms pay 1) a one time application fee of 0.1 percent of estimated investment capped at 50,000 dollars, 2) an annual community service fee to the city, and 3) a school support fee equal to 15 percent of the abated tax in years four and five when the site sits in the Hillsboro School District. City of Hillsboro The city puts community service fee money into workforce and small business programs. Hillsboro work session materials | State enterprise zone law plus local policy. The city says it had no room to refuse. Hillsboro stopped accepting new AI data center applications after May 7, 2026 so pending files could clear ahead of the state bar. It still logged 17 applications from 8 companies across 11 sites between March 8 and May 7, 2026. Hillsboro work session materials City of Hillsboro KATU The council held work sessions on June 2 and June 9, 2026. It came out of them with a study list rather than an ordinance. The list runs to five items. The first three are 1) a new land use category and definition for data centers, 2) changes to the community service fee, and 3) limits on how many abatements one site can take. The last two are 4) public notice changes and 5) a possible franchise fee surcharge on large power users. City of Hillsboro June 9 recap Hillsboro work session materials Davis Wright Tremaine No ordinance had been adopted as of August 2, 2026. City of Hillsboro In June 2026 the Oregon Education Association, 1000 Friends of Oregon, Tax Fairness Oregon, and others sued in Washington County Circuit Court. They ask the court to block all 17 approvals. The defendants include the county assessor, city officials, and seven tech companies among them Adobe, Nvidia, and Dropbox. Oregon Capital Chronicle Willamette Week The zone runs under ORS 285C.050 to 285C.250, the sections Oregon law names the Oregon Enterprise Zone Act. ORS chapter 285C | Open to other traded sector firms, closed to new AI data centers. HB 4084 has barred new authorization under ORS 285C.140 for AI data center property since June 2026. The bar lifts 90 days after the 2027 regular session adjourns sine die. HB 4084 enrolled On July 21, 2026 the city council went further and adopted a 180 day pause on new Strategic Investment Program agreements for standalone AI data centers. The pause is extendable once by majority vote. So that route is shut too. Hillsboro News Times The zone itself survives until the statewide enterprise zone sunset. That sunset bars designation of any zone after June 30, 2032. ORS 285C.255 |
| Gain Share revenue sharing tied to Strategic Investment Program projects | Washington County collects a share of the state personal income tax revenue generated by jobs at local Strategic Investment Program projects. Washington County The county is the largest Gain Share recipient in Oregon thanks to the Intel agreements. The same mechanism reaches any large project running on the program. Tax Fairness Oregon | The project has to hold a Strategic Investment Program agreement. The county has to have granted the local approval. Washington County Business Oregon ORS 285C.635 sets the split at 20 percent of the personal income tax revenue from retained jobs and 50 percent from newly created jobs. It caps any one county at 16 million dollars a year. ORS 285C.635 | Active now but on a clock. A note published with the statute in ORS chapter 285C says distributions under ORS 285C.635 (3) may not be made after July 15, 2030. ORS chapter 285C Nothing in the 2026 moratorium touches it. That bar reaches only standard enterprise zone authorization, and Gain Share rides on the Strategic Investment Program. HB 4084 enrolled |
Pennsylvania gives a certified AI data center and its large tenants a full exemption from the 6 percent state sales and use tax on equipment. Computer Data Center Equipment Exemption Program Program FAQ Servers also escape property tax, because Pennsylvania levies no tangible personal property tax of its own and the local assessment statute keeps machinery and equipment out of the assessed real estate. 53 Pa.C.S. § 8811(b)(1) 53 Pa.C.S. § 8811 Pennsylvania DCED Site Selector Guide Both chambers voted in June 2026 to repeal the sales tax exemption, but they passed different bills and never agreed on one, so the exemption survived the 2026-27 budget that Governor Shapiro signed on July 12, 2026. Spotlight PA City and State PA Pennsylvania Governor’s Office
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Computer Data Center Equipment Exemption Program | Computer data center equipment bought for a certified data center is exempt from the 6 percent Pennsylvania sales and use tax, effective January 1, 2022. Department of Revenue Covered items include servers, networking gear, racks, cabling, software, generators, uninterruptible energy supplies, switchgear, cooling systems, water conservation systems, monitoring and security systems and modular data centers. The exemption applies whether or not the equipment is bolted to the building. Program guidelines Certification lasts 25 full calendar years following the year the application is filed. 2025 program report The 2016 version was a refund of tax already paid. Act 25 of 2021 turned it into an upfront exemption claimed with certificate REVK-704 alongside the general exemption certificate REV-1220. 72 P.S. § 9911-D Program guidelines Act 84 of 2016 put the computer data center equipment incentive program into the Tax Reform Code of 1971. Act 13 of 2019 amended the program limitations. Act 84 of 2016 Act 13 of 2019 The break is narrower than it sounds. It reaches only the 6 percent state rate. A buyer in Allegheny County still owes the 1 percent county tax. A buyer in Philadelphia still owes the 2 percent city tax. The certificate does not cover utilities, labor, maintenance, tools, offsite storage or the concrete in the building foundation. Program FAQ The Department of Revenue names every certified company each year. The 2025 report lists 13 companies. Among them are Amazon Data Services, Oracle America, CoreWeave, Cumulus Data, Iron Mountain Data Centers, TierPoint, Nautilus Cryptomine, Expedient, Early Warning Services, SEI and 401 North Broad Lessee. 2025 program report | The owner or operator has to be certified by the Department of Revenue. By the fourth anniversary of certification the site has to meet an investment and jobs threshold. In a county of 250,000 or fewer people that means at least 75 million dollars of new investment and 25 new jobs. In a larger county it means at least 100 million dollars and 45 new jobs. After year four the taxpayers operating or occupying the site must pay at least 1 million dollars in combined annual compensation every year. 2025 program report A colocation tenant qualifies if it holds an occupancy agreement and commits to at least 100 kilowatts per month for two or more years. Its exemption ends at the earlier of the end of that agreement or the end of the tenth full calendar year after the agreement begins. Exemption applications are filed annually. Renewals are due by October 1 for the following calendar year. Program guidelines Laptops, handheld devices and motor vehicles do not qualify. Neither does equipment used to generate electricity for resale to a power utility. The same goes for equipment used to generate, provide or sell more than 5 percent of the center's electricity outside the center. 72 P.S. § 9911-D Program guidelines A telecommunications provider's data center that mostly serves the provider or its subsidiaries is excluded. The Department can revoke certification and claw back the benefits if the investment, jobs, compensation or tax compliance requirements lapse. The guidelines tie that power to section 2935-D of the act. Purdon's prints that provision as 72 P.S. § 9935-D. Program guidelines Purdon's Art. XXIX-D 72 P.S. § 9935-D | Active as of July 2026. It survived a repeal push that cleared both chambers in June 2026 in two different bills. Those bills were never reconciled. Spotlight PA City and State PA The same budget left the exemption alone but added a separate duty through Senate Bill 146. An AI data center with peak capacity above 10 megawatts now has to file annual energy and water use reports with the Department of Environmental Protection. The first reports are due July 1, 2027. Not filing carries a civil penalty of 10,000 dollars a day. Altoona Mirror |
| No property tax on data center equipment | Pennsylvania local property tax falls on real estate only. The state levies no tangible personal property tax of its own, so machinery, equipment and inventories go untaxed. Pennsylvania DCED Site Selector Guide The assessment law says machinery, tools, appliances and other equipment inside any mill, mine, manufactory or industrial establishment is not part of the real estate. 53 Pa.C.S. § 8811(b)(1) So the servers, racks and IT gear inside a Pennsylvania AI data center are not taxed as property, while the building and the land are. Chapter 88 never defines mill, mine, manufactory or industrial establishment and never names a data center. Whether an AI data center is one of them is not settled on the face of the statute. 53 Pa.C.S. § 8811 53 Pa.C.S. § 8802 definitions | None to file. The statute frames the exclusion in mandatory terms, that the equipment shall not be considered or included as a part of the real estate, and it creates no application, election, certification, or approving authority. There is still a threshold to clear. The exclusion reaches only machinery, tools, appliances and other equipment contained in any mill, mine, manufactory or industrial establishment. Section 8811 defines none of those four terms and never mentions data centers, so whether an AI data center is one of them is an open question this statute does not answer. 53 Pa.C.S. § 8811(b)(1) | Active. 53 Pa.C.S. § 8811(b)(1) |
| LERTA local property tax abatement (state enabling law) | The Local Economic Revitalization Tax Assistance Act lets counties, municipalities and school districts abate local property tax on the added assessed value of new construction in designated deteriorated areas. The break runs up to 10 years. Each taxing body opts in on its own and writes its own schedule. Allegheny County LERTA Act 76 of 1977 This is the abatement AI data center developers actually ask for in Pennsylvania. Luzerne County granted one in March 2025 for the proposed NorthPoint campus in Hazle Township. Salem Township supervisors granted Amazon a 70 percent break for 10 years. Citizens Voice Republican Herald | The property has to sit in an area the local government has designated as deteriorated. Only the value of new improvements is abated, never the land or the existing value. The break runs at most 10 years per taxing body. Allegheny County LERTA The enabling law is 72 P.S. § 4722 et seq., passed as Act 76 of 1977. It lets a local government call an area deteriorated on grounds like 1) unsafe, unsanitary and overcrowded buildings, 2) vacant and overgrown lots and 3) a disproportionate number of tax delinquent properties. Act 76 of 1977 | Active, and increasingly contested. Luzerne County council debated tighter LERTA guidelines for AI data centers in August 2025. On September 9, 2025 it rejected a proposed LERTA moratorium on land along the planned PPL Sugarloaf transmission route. Citizens Voice Citizens Voice |
| Keystone Opportunity Zones | A business on a designated KOZ parcel pays little to no state and local business tax until the zone expires. The relief can reach sales and use tax, corporate net income tax and local real estate tax on the parcel. DCED Act 92 of 1998 The program matters for AI data centers because of the roughly 1,800 acre Keystone Trade Center in Falls Township, Bucks County. Amazon is building a campus there. The site carries a Keystone Opportunity Improvement Zone designation that runs through December 31, 2035. Levittown Now Suburban Realtors Alliance | The parcel needs a KOZ designation approved by the state. Every political subdivision in the zone has to adopt its own ordinance or resolution exempting or abating its local taxes. Act 92 of 1998 The business must 1) own or lease property in the zone, 2) actively do business there, 3) apply through DCED every year and 4) stay current on state and local taxes. DCED Assessors guide | Active, with expiration dates that vary parcel by parcel. DCED |
County and local programs
Bucks County
Amazon is building the county's first AI data center on the former US Steel Fairless Works site in Falls Township, inside the roughly 1,800 acre Keystone Trade Center, which carries a Keystone Opportunity Improvement Zone designation running through 2035. Levittown Now Bucks County Courier Times Falls Township said construction was nearly finished by July 2026, and the project has drawn heavy local opposition, including a petition with more than 3,100 signatures. Bucks County Courier Times Bucks County Herald
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Keystone Trade Center zone designation in Falls Township | The Bucks County Commissioners approved a Keystone Opportunity Improvement Zone for the roughly 1,800 acre former US Steel site in December 2020. The 15 year abatement period took effect January 1, 2021 and runs through December 31, 2035. Levittown Now Suburban Realtors Alliance A business on a designated parcel in the zone pays greatly reduced or no state and local business tax, including abated local real estate tax. DCED Amazon announced in June 2025 that it would build an innovation campus with AI data centers on part of the site. The campus is one of two Pennsylvania projects in an investment Amazon valued at 20 billion dollars or more. The AI data center takes up roughly 250 acres of the larger site. Spotlight PA WHYY I could not confirm from any public source as of August 2, 2026 whether the specific parcels under the AI data center still hold the designation. Nor could I confirm that they are actually claiming zone benefits. The caution is warranted. In 2023 Falls Township approved a resolution to pull 112 acres out of the zone and add 105 acres back in. It needed Bucks County, the Pennsbury School District and the state to agree. Suburban Realtors Alliance Falls Township Construction on the Amazon campus at the Keystone Trade Center was nearly finished as of July 2026. It will be the first AI data center in Bucks County. Bucks County Courier Times | Bucks County approved the zone in December 2020. Every political subdivision in a zone has to adopt its own local tax exemption ordinance. Levittown Now Act 92 of 1998 A business has to 1) sit on a designated parcel, 2) apply for KOZ benefits every year and 3) stay current on state and local taxes. DCED | Active. The state publishes its Keystone Opportunity Zone parcels on an interactive map. That map loads its records through script, so the Fairless Hills parcels, their holders and their expiration dates cannot be read from the page itself. DCED Keystone Opportunity Zone map |
Indiana County
Indiana County holds the Homer City Energy Campus, a 3,200 acre AI and high performance computing campus on the site of a retired coal plant, with 4.4 gigawatts of natural gas generation planned and power expected in 2027. Homer City Redevelopment Indiana Gazette I looked for a county or municipal abatement tied to the project and found none as of August 2, 2026. The developer's own releases and the local reporting cover permits, acreage and gas supply and say nothing about a tax break, and Indiana Borough's LERTA covers new construction over 20,000 dollars inside the borough, which is not where the campus sits. Homer City Redevelopment Indiana Borough LERTA So the state sales and use tax exemption looks like the only confirmed incentive in play here.
Luzerne County
Luzerne County approved a 10 year LERTA property tax break in March 2025 for the proposed NorthPoint AI data center campus in Hazle Township. Citizens Voice Then the township denied the project's land development plan in November 2025 and paused new AI data center applications in June 2026. Food and Water Watch Standard Speaker Food and Water Watch on the six month pause The county also hosts Amazon's campus in Salem Township near the Susquehanna nuclear plant, where supervisors rezoned nearly 1,600 acres into a Special Data Center Overlay District and had already granted Amazon a 70 percent LERTA break for 10 years. Republican Herald Township officials expect about 7 million dollars a year in township taxes once that discount period ends. Republican Herald
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Project Hazelnut LERTA in Hazle Township, county portion | A 10 year county property tax abatement on the value of new improvements. It covers NorthPoint Development's proposed campus of 15 buildings on 472 acres near the Humboldt Industrial Park in Hazle Township. The exemption is 90 percent in years one through seven, 80 percent in year eight, 70 percent in year nine and 60 percent in year ten. County council approved it in March 2025. Citizens Voice Council then started debating tighter LERTA guidelines after residents pushed back. Citizens Voice The abatement is attached to a project that has gone nowhere locally. Hazle Township supervisors voted 3 to 0 to deny the preliminary land development plans on November 14, 2025. Luzerne County Judge Lesa Gelb denied NorthPoint's appeal in a decision released May 26, 2026. The township then adopted a curative amendment on June 8, 2026. That amendment pauses new AI data center applications for 180 days while the township rewrites its zoning ordinance. Standard Speaker Standard Speaker Standard Speaker Food and Water Watch on the township denial Food and Water Watch on the six month pause NorthPoint has not walked away. On June 24, 2026 it announced a revised proposal carrying a 165 million dollar community benefits fund. That fund includes 10,000 dollar grants to eligible township households. Inside Climate News I could confirm only the county share of this LERTA. As of August 2, 2026 neither Hazle Township nor the Hazleton Area School District has published a matching resolution I could read. The reporting on the county vote does not say either body acted. Citizens Voice | New construction on land designated as deteriorated under LERTA. The owner keeps paying tax on the land and the existing value. Each taxing body grants its own share of the abatement. Allegheny County LERTA Citizens Voice The county resolution rests on 72 P.S. § 4722 et seq. and on the Hazle Township ordinance that designated the deteriorated area after a public hearing. An owner has to file its exemption application with the Luzerne County Tax Assessor's Office within 45 days of getting the building permit. Luzerne County Resolution R-2025-71 | Active. The county grant is Resolution R-2025-71, adopted 10 to 1 on March 25, 2025 and effective immediately. An application may be filed at any time within 10 years of that date. Luzerne County Resolution R-2025-71 The abatement itself does not begin to run until the Luzerne County Assessor's Office assesses the new construction. Luzerne County Resolution R-2025-71 |
| Salem Township LERTA for the Amazon campus | Salem Township supervisors approved a LERTA break for Amazon worth a 70 percent discount for 10 years. They then voted 3 to 0 in May 2024 to rezone nearly 1,600 acres into a new industrial Special Data Center Overlay District. Amazon Web Services told the hearing it hopes to build 15 buildings over the following decade. Township officials said Amazon would pay full taxes once the discount period runs out. They said that would generate roughly 7 million dollars a year to the township. Republican Herald Data Center Dynamics The project also holds state FastTrack permitting status. Office of Transformation and Opportunity | New construction on land designated as deteriorated under LERTA. The abatement runs only against the added assessed value and only for the taxing body that granted it. The township grant does not by itself bind the county or the school district. Allegheny County LERTA Republican Herald The enabling law is 72 P.S. § 4722 et seq., the Local Economic Revitalization Tax Assistance Act of 1977. It caps the schedule of taxes exempted at ten years. Act 76 of 1977 | Active and administered building by building. The Salem Township Board of Supervisors approved Amazon's LERTA request for the PHL 104 and PHL 105 improvements on August 12, 2025. Salem Township minutes, August 12, 2025 The board directed that Luzerne County be notified and given a copy of the township ordinance. Salem Township minutes, August 12, 2025 At the August 26, 2025 work session the board denied an AWS LERTA application covering two structures that were not completed. Salem Township minutes, August 26, 2025 It told AWS to reapply once the structures are finished because the county assesses a structure only on completion. Salem Township minutes, August 26, 2025 A further AWS request for a LERTA application appears in the correspondence the board reviewed on March 10, 2026. Salem Township minutes, March 10, 2026 The AI data center campus itself remains under construction. Pennsylvania lists the Salem Township Data Center Development, sponsored by Amazon Data Services, as in progress under its Permit Fast Track program. PA Office of Transformation and Opportunity The state accepted the project into that program on December 20, 2024. PA Office of Transformation and Opportunity |
Rhode Island runs no incentive program of its own for AI data centers, and the six bills on AI data centers filed in 2026 all died when the General Assembly adjourned on June 11, 2026. Rhode Island Current Rhode Island Current on the final day of the 2026 session What a project can use here is the ordinary menu of business incentives plus one quietly valuable break, a full state sales tax exemption on electricity. R.I. Gen. Laws § 44-18-30
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Sales and use tax exemption for electricity, natural gas, and heating fuel | Sales of electricity, natural gas, and heating fuel are exempt from the seven percent state sales and use tax. The exemption is written for every kind of use, business use included. R.I. Gen. Laws § 44-18-30(20) and (21) KLR analysis of the Rhode Island energy sales tax exemption An AI data center in Rhode Island pays no state sales tax on its power bill. For a building whose largest single operating cost is electricity, that is worth more than the named incentive programs put together. The Economic Progress Institute made the same point when it opposed the 2026 tax break bill. Economic Progress Institute testimony on S2346 | None. The Division of Taxation confirmed that as of July 1, 2015 all sales of heating fuels, electricity, and gas became exempt. That change removed the older limits that had confined the break to residential and manufacturing use. R.I. Division of Taxation Notice 2015-03 R.I. Division of Taxation Summary of Legislative Changes, July 22, 2015 | Active. |
| Qualified Jobs Incentive Tax Credit | Annual redeemable tax credits of up to seven thousand five hundred dollars per new job, for as long as ten years. The credits go to a company that creates new positions in Rhode Island or moves jobs into the state. Rhode Island Commerce This is a general program and not an AI data center program. An AI data center employs very few people once it is running, so the realistic value to a large facility is small. | The Rhode Island Commerce Corporation has to approve the award before the jobs are created. R.I. Gen. Laws § 44-48.3-3(11) Minimum job counts and wage thresholds vary by company size and industry. Rhode Island Commerce | Active. No credits may be reserved after December 31, 2027 under the sunset as extended by Article 3, Section 16 of the fiscal 2027 budget, which the governor signed on June 12, 2026. The House Fiscal Advisory Staff report on the enacted budget describes Sections 9 through 16 of that article as extending the Qualified Jobs Tax Credit sunset by one year to December 31, 2027. House Fiscal Advisory Staff, Budget as Enacted Fiscal Year 2027 Read the codified section with care, because the General Assembly's posted copy still carries the old December 31, 2026 date and its history note stops at the budget act of June 2025. R.I. Gen. Laws § 44-48.3-14 2026 H 7127 Substitute A as amended Bloomberg Tax on the enacted fiscal 2027 Rhode Island budget Southern Rhode Island Chamber legislative update on the fiscal 2027 budget |
| Rebuild Rhode Island Tax Credit | Redeemable tax credits that close the financing gap on a real estate development project the Rhode Island Commerce Corporation approves. The credit is capped at the lesser of thirty percent of total project cost or the amount needed to close the gap. No single project may take more than fifteen million dollars. R.I. Gen. Laws § 42-64.20-5(f) Commerce describes the ordinary award as twenty percent of project cost, with thirty percent held back for projects that hit bonus criteria. That is why published figures for this program disagree. Executive Office of Commerce The fiscal 2027 budget raised the program wide ceiling from two hundred twenty-five million dollars to two hundred fifty million dollars. 2026 H 7127 Substitute A as amended, Article 3, Section 8 Bloomberg Tax on the enacted fiscal 2027 Rhode Island budget An AI data center building shell could be presented as a commercial development. | The Rhode Island Commerce Corporation has to approve the project. A commercial development must meet four tests. 1) The building must run at least twenty-five thousand square feet. 2) After construction at least one business employing at least twenty-five full time employees must occupy it. 3) Total project cost must be at least five million dollars. 4) The applicant must put in capital or owner equity of at least twenty percent of that cost. R.I. Gen. Laws § 42-64.20-5(b) Rhode Island Commerce Rebuild Rhode Island Tax Credit page An AI data center clears the square footage and the cost tests without effort and then runs straight into the employee count. | Active. No credits may be reserved after December 31, 2027 under the sunset as extended by Article 3, Section 8 of the fiscal 2027 budget, which the governor signed on June 12, 2026. The House Fiscal Advisory Staff report on the enacted budget describes that section as extending the Rebuild Rhode Island sunset provision by one year to December 31, 2027. House Fiscal Advisory Staff, Budget as Enacted Fiscal Year 2027 Read the codified section with care, because the General Assembly's posted copy still carries the old December 31, 2026 date and its history note stops at the budget act of June 2025. R.I. Gen. Laws § 42-64.20-10 2026 H 7127 Substitute A as amended Southern Rhode Island Chamber legislative update on the fiscal 2027 budget |
| Rhode Island Tax Increment Financing | The Rhode Island Commerce Corporation may agree to hand back to a developer a share of the new state tax revenue a project generates. The money goes to infrastructure and development costs. R.I. Gen. Laws § 42-64.21-5 R.I. Gen. Laws § 42-64.21-6 State records show about eighty point one million dollars awarded. That makes this one of the larger tools in the Commerce kit. Senate Fiscal Office brief on the Executive Office of Commerce | An agreement with the Rhode Island Commerce Corporation. No AI data center has used it, and none could have. Rhode Island has no operating AI data centers. The Smithfield proposal is the first serious one the state has seen. Ocean State Media | Active. No new agreements may be entered after December 31, 2027. Article 3, Section 9 of the fiscal 2027 budget struck December 31, 2026 from this sunset and put December 31, 2027 in its place. Governor McKee signed that budget on June 12, 2026. 2026 H 7127 Substitute A as amended Governor McKee signs the fiscal 2027 budget The General Assembly's posted codified text still shows the old 2026 date, because its history line stops at P.L. 2025, ch. 278, art. 6, § 6. R.I. Gen. Laws § 42-64.21-9 Southern Rhode Island Chamber legislative update on the fiscal 2027 budget |
| Tax Stabilization Incentive Program | The state pays a city or town back for part of the property tax revenue it gave away when it granted a qualifying tax stabilization agreement. R.I. Gen. Laws § 42-64.22-3 Commerce Corporation rules set the reimbursement at up to ten percent of the foregone revenue. 870-RICR-30-00-2 This is the state sweetener that makes a Rhode Island town readier to hand a large project a property tax deal. | Three things have to line up. 1) The municipality has to be a qualified community or a Hope Community. 2) The stabilization agreement has to be granted under R.I. Gen. Laws § 44-3-9. 3) The community applies to the Rhode Island Commerce Corporation for certification. R.I. Gen. Laws § 42-64.22-3 Only about two point one million dollars has ever been awarded under it. Senate Fiscal Office brief on the Executive Office of Commerce | Active. No new agreements may be entered after December 31, 2027 under the sunset as extended by Article 3, Section 10 of the fiscal 2027 budget. 2026 H 7127 Substitute A as amended Southern Rhode Island Chamber legislative update on the fiscal 2027 budget |
| Statewide tangible property tax exemption and tangible rate cap | Every city, town, and fire district has to exempt the first fifty thousand dollars of a taxpayer's ratable tangible personal property, starting with the December 31, 2023 assessment date. R.I. Gen. Laws § 44-5.3-1 A companion section freezes each municipality's tangible property tax rate at whatever rate was in effect for the December 31, 2022 assessment date. R.I. Gen. Laws § 44-5.3-3 The fifty thousand dollar exemption is a rounding error against a server fleet worth hundreds of millions. The permanent rate cap is not. It is real protection against a town raising the tangible rate once expensive equipment shows up inside the fence. | Automatic for a business that files its annual tangible property return with the municipality. R.I. Gen. Laws § 44-5-15 Property valued above fifty thousand dollars stays taxable. R.I. Gen. Laws § 44-5.3-1 | Active, enacted in 2023 Office of the Governor. |
| Municipal tax exemption or stabilization agreements | State law lets any city or town exempt real and personal property used for manufacturing or commercial purposes, in whole or in part. The town can instead fix a stabilized amount of tax on that property. Either deal can run no more than twenty years. The statute defines commercial property as buildings or structures used essentially for offices or commercial enterprises. R.I. Gen. Laws § 44-3-9 This is the vehicle a Rhode Island town would use to give an AI data center a property tax deal. | The city or town council has to hold public hearings on at least ten days notice in a newspaper of general circulation. The council also has to find that the deal benefits the municipality. The benefit can be the willingness of the concern to locate there, or a long term improvement to the physical plant of the town. Several municipalities also have their own named versions in sections 44-3-9.1 through 44-3-9.10. R.I. Gen. Laws § 44-3-9 R.I. Gen. Laws chapter 44-3 section list No Rhode Island municipality has granted one of these to an AI data center. The state has no operating AI data centers. Smithfield is where the first serious proposal landed. Ocean State Media | Active. |
County and local programs
Providence County
Smithfield, home to the only serious AI data center proposal in Rhode Island, voted four to one on May 5, 2026 to define data centers and list them as not permitted in every zoning district. WPRI Ocean State Media Smithfield Planning Department staff memo on the data center zoning amendment No municipality in Providence County offers an AI data center incentive.
South Carolina exempts a qualifying data center from state and local sales tax on its computers, its computer equipment, its software, and the electricity it burns, and the state stops certifying new facilities on January 1, 2032. S.C. Code 12-36-2120(79) The bigger money is local. Counties negotiate fee in lieu of tax agreements that cut the property tax assessment ratio and lock the millage rate for decades, and they usually stack a multi-county park designation and a credit back against the fee on top. S.C. Code 12-44-30 SC Department of Commerce incentives booklet The hard part in 2026 is not finding the incentive. It is finding a county council willing to grant one, because six counties adopted or advanced AI data center moratoriums between April and July 2026. SC Daily Gazette Chesterfield County ordinances Fort Mill Sun
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Datacenter sales and use tax exemption | A full exemption from the 6 percent state sales and use tax, and from local option sales taxes. It covers original or replacement computers, computer equipment, computer hardware, and computer software used within the datacenter. S.C. Code 12-36-2120(79) The exemption also covers electricity used by the datacenter and by eligible business property at the site. Eligible business property means substations and other equipment for generating, transforming, transmitting, distributing, or managing electricity. Electricity used for administrative offices, parking lots, storage warehouses, maintenance shops, cafeterias, and similar space is still taxed. S.C. Code 12-36-2120(79) Once a facility qualifies, every later purchase of computer equipment is exempt. That includes replacements and future expansions, no matter when the investment happens. SC Revenue Ruling 13-5 The Department of Revenue reported that these exemptions came to about 828,300 dollars for the fiscal year that ended June 30, 2025. That figure followed a correction, because the agency said it had mistakenly used billion instead of million. Seven data center companies claimed the break that year. SC Daily Gazette SC Daily Gazette No company claimed it at all until the 2021 to 2022 fiscal year. That year it came to less than 500,000 dollars. It peaked at about 1.4 million dollars in 2023 to 2024. SC Daily Gazette The agency has never named those seven companies, and it cannot. Section 12-54-240 makes it unlawful to divulge particulars set out in a taxpayer return. S.C. Code 12-54-240 The exemption was created by H.3720 in the 2011 to 2012 session. S.C. H.3720, 2011-2012 session SC Department of Commerce incentives booklet | The facility must sit at a single South Carolina location. Its power and cooling systems must be concurrently maintainable, with redundant capacity components and multiple distribution paths serving the computer equipment. One taxpayer must invest at least 50 million dollars in real or personal property over a five year period. Two or more taxpayers can instead invest at least 75 million dollars combined over five years. S.C. Code 12-36-2120(79) The facility must create and maintain at least 25 full-time jobs. Those jobs must pay average cash compensation of at least 150 percent of per capita income. That test uses per capita income for the state or for the county where the facility sits, whichever figure is lower. The jobs must be held for three straight years after the Department of Commerce certifies the facility. S.C. Code 12-36-2120(79) The taxpayer must notify both the Department of Revenue and the Department of Commerce in writing before claiming anything. Both the investment clock and the job clock start on that notice. If the taxpayer misses the investment or job targets at the end of the five years, the Department of Revenue can assess every dollar of state and local sales tax that was skipped. If the taxpayer hits the targets but later drops below 25 qualifying jobs, the equipment exemption stops until the jobs come back. The electricity exemption then shrinks to the share of the price found by dividing the number of qualifying jobs by 25. S.C. Code 12-36-2120(79) | Active as of August 2, 2026, and unchanged by the 2026 session. A facility must be certified by the Department of Commerce before January 1, 2032. A facility certified by December 31, 2031 keeps the exemption for ten more years. At the end of that period the provision is repealed. S.C. Code 12-36-2120(79) Senator Chip Campsen of Isle of Palms tried to suspend the exemption for one year on the Senate floor on April 23, 2026. He lost. SC Daily Gazette |
| Technology intensive facility computer equipment exemption | Sales and use tax exemption on computer equipment used in connection with a technology intensive facility. S.C. Code 12-36-2120(65)(a) The definition of computer equipment tracks the one used for the datacenter exemption. It covers servers, routers, switches, power units, network devices, storage, cabling, and cooling apparatus. S.C. Code 12-36-2120 | The taxpayer must meet three tests. 1) Invest at least 300 million dollars in real or personal property over five years. 2) Create at least 100 new full-time jobs paying average cash compensation of at least 150 percent of state per capita income. 3) Put at least 60 percent of that 300 million dollars into computer equipment. S.C. Code 12-36-2120(65)(a) This route is narrower than it looks. I read the cross reference. The exemption points only to the definition in Section 12-6-3360(M)(14)(b). That definition covers a facility primarily used for internet service provider and web search portal activity under the 2002 NAICS code 51811. S.C. Code 12-6-3360(M)(14) A colocation or hosting AI data center normally falls under NAICS 518210 for data processing and hosting. That code sits in subitem (a) of the definition. Subitem (a) is not the one this exemption cross references. S.C. Code 12-6-3360(M)(14) | Active. It is a general program that will rarely be the right fit for an AI data center. S.C. Code 12-36-2120(65)(a) |
| Fee in lieu of property taxes, known as FILOT | A county can replace property tax with a negotiated fee for up to three decades. The assessment ratio drops from the standard 10.5 percent that applies to business personal property to as low as 6 percent. It can go as low as 4 percent for a project meeting the enhanced investment test. S.C. Code 12-44-50 SC Department of Revenue fee in lieu of taxes The millage rate is either fixed for the life of the fee or allowed to move only every fifth year. Real property fair market value is locked at the first year figure for the life of the fee. That lock does not apply if the agreement instead provides for reappraisal every five years. S.C. Code 12-44-50 Personal property such as servers still depreciates. Replacement property can go under the agreement up to the original income tax basis of the property it replaces. S.C. Code 12-44-60 SC Department of Revenue fee in lieu of taxes | At least 2.5 million dollars must be invested in the project within the investment period. That period normally runs five years from the commencement date, and eight years for an enhanced investment. S.C. Code 12-44-30 The floor drops to 1 million dollars in a county whose average annual unemployment rate ran at least twice the state average over the preceding twenty four months. The Department of Revenue designated no county at all under that reduced figure for 2026. That leaves the 2.5 million dollar floor as the only one in play this year. SC Information Letter 25-21 An enhanced investment means either 400 million dollars from a single sponsor, or 150 million dollars plus at least 125 new full-time jobs. S.C. Code 12-44-30(7) The county council must find that the benefits of the project outweigh its costs and set that finding out in an ordinance. S.C. Code 12-44-40(I) Property already on the state tax rolls, including existing buildings, generally cannot go under the fee. The state incentives booklet notes that the restriction is waived for a company adding 45 million dollars or more of new investment. SC Department of Commerce incentives booklet The standard term ends no later than the 29th year after the property is placed in service. The county may extend it up to ten more years on a finding of substantial public benefit. An enhanced investment runs to the 39th year, with the same possible extension. S.C. Code 12-44-30(21) A fee agreement cannot later be amended to lower the millage rate, the discount rate, or the assessment ratio. S.C. Code 12-44-30 | Active. It is the single largest lever in a South Carolina AI data center package. SC Department of Commerce incentives booklet |
| Special source revenue credit | A county can give back part of the fee payments as a credit against the fee. That lowers what the company actually pays. S.C. Code 4-29-68 The money is treated as paying for infrastructure serving the issuer or the project. The statute defines infrastructure broadly enough to include improved or unimproved real estate. It also covers personal property such as machinery and equipment used by a commercial enterprise. S.C. Code 4-29-68 Under Section 12-44-70 the county can deliver the benefit as a straight credit without issuing special source revenue bonds at all. S.C. Code 12-44-70 | The credit rides on a fee in lieu of tax agreement and is authorized by county ordinance. There is no statutory ceiling on the credit amount. S.C. Code 4-29-68 The credit cannot run longer than the period over which the fee payments are scheduled to be received. S.C. Code 4-1-175 S.C. Code 4-29-68(A)(7) A county that pledges this revenue cannot count the related property value toward its constitutional debt limit. S.C. Code 4-29-68 | Active. It is routinely paired with the fee agreement in South Carolina AI data center deals. SC Department of Commerce incentives booklet Good Jobs First |
| Multi-county industrial or business park | Two counties agree by contract to treat a site as a joint park and split the revenue by a stated percentage. S.C. Code 4-1-170 Placing a project inside one of these parks is the usual way a county unlocks the special source revenue credit. S.C. Code 4-1-175 It can also add a bonus to the state job tax credit. S.C. Code 12-6-3360 Almost every large South Carolina AI data center deal is layered this way, so the park agreement is worth reading alongside the fee agreement. SC Department of Commerce incentives booklet Good Jobs First | The counties need a written agreement that does three things. 1) Cover how expenses are shared. 2) Specify by percentage the revenue allocated to each county. 3) Set out how revenue reaches the school district and other taxing entities. S.C. Code 4-1-170 If the park takes in all or part of a municipality, the counties must get that municipality to consent before the park is created. Property value must be allocated to each participating county in the same percentages as the revenue. S.C. Code 4-1-170 | Active. Aiken County ran the park for its Meta project across the line into Edgefield County. That shows how routine the structure is. Aiken Chronicles Good Jobs First |
| Job tax credit | An annual credit against corporate income tax for each new full-time job. The credit is allowed for five years and begins in year two after the job is created. S.C. Code 12-6-3360 The initial credit runs by county tier. 1) 25,000 dollars per job in a Tier IV county. 2) 20,250 dollars in Tier III. 3) 2,750 dollars in Tier II. 4) 1,500 dollars in Tier I. The credit can offset no more than 50 percent of the taxpayer's South Carolina income tax liability for the year. S.C. Code 12-6-3360(C)(1) A project in a multi-county park or on a cleaned up brownfield site can pick up an additional 1,000 dollars per job. SC Department of Revenue incentives manual | The taxpayer must operate one of the listed facility types. An AI data center gets there as a qualifying technology intensive facility. NAICS code 518210 for data processing, hosting, and related services is on the statutory list in Section 12-6-3360(M)(14)(a). S.C. Code 12-6-3360(M)(14) Employment must rise by at least ten net new full-time jobs and stay there. No credit is allowed for any year in which the net increase falls below ten. S.C. Code 12-6-3360 The Department of Revenue reranks all 46 counties into four tiers by December 31 each year, so the per job amount moves annually. The statute fixes the tier sizes at twelve Tier IV counties, twelve Tier III, eleven Tier II, and eleven Tier I. S.C. Code 12-6-3360(B) For jobs created in 2026 the department set these placements. 1) Marion and Union in Tier IV. 2) Chesterfield, Colleton, and Greenwood in Tier III. 3) Aiken and Newberry in Tier II. 4) Berkeley, Dorchester, Greenville, Spartanburg, and York in Tier I. SC Information Letter 25-21 The same letter named Marlboro, Union, and Chesterfield as corporate tax moratorium counties for 2026. SC Information Letter 25-21 | Active. An AI data center employs few people, so this credit is usually small next to the sales tax exemption and the county fee agreement. It pays the most in exactly the rural counties where the projects are least welcome. SC Information Letter 25-21 Guide to the South Carolina new jobs credit |
| Job development credit | A cash rebate funded by the state personal income tax withheld from new employees' paychecks. The company uses it to offset eligible capital costs such as land, building, site development, pollution control equipment, or infrastructure. S.C. Code 12-10-80 The Coordinating Council for Economic Development generally caps collection at 3,250 dollars per employee per year. Employees receive an offsetting credit equal to the withholding the company uses, so their take home pay is unaffected. SC Department of Commerce discretionary incentives | The company must meet the requirements of a manufacturing, agricultural packaging, processing, corporate office, warehouse and distribution, research and development, agribusiness, tourism, or qualified service-related facility. An AI data center has to fit itself into one of those boxes rather than qualifying as an AI data center. S.C. Code 12-10-80 SC Department of Commerce incentives booklet It must also meet three conditions. 1) Create at least ten new full-time jobs. 2) Provide a comprehensive health plan. 3) Pay at least 50 percent of the employee cost of the premiums. S.C. Code 12-10-80 SC Department of Commerce incentives booklet The Coordinating Council approves the application, and the company then signs a revitalization agreement. Nothing can be claimed for a job that existed in South Carolina before the year of approval. SC Department of Commerce incentives booklet | Active. The Senate added a proviso to its April 2026 version of the state budget that would have cut off Coordinating Council incentives to data centers for one year. That proviso is not in force. SC Policy Council South Carolina had no enacted budget for the fiscal year that began July 1, 2026 as of August 2, 2026. The House and Senate deadlocked. They passed a continuing resolution funding government at prior year levels. The conference committee met again on July 14 and stalled over property tax relief and earmarks. WRDW Greenville News WIS Until a budget passes, none of the 2026 data center provisos has any legal effect. H.5126 budget documents |
| Dominion Energy South Carolina economic development rider | A discount applied to the bills of a qualifying new or expanding large customer. The discount is calculated against whatever rate schedule the customer selects. I read the filed tariff. The credit runs against basic facilities charges, demand charges, and energy charges. For a customer with a load factor of 65 percent or better, the credit is 30 percent in the first twelve months. It then steps down to 20 percent, 15 percent, 10 percent, and 5 percent. It ends after sixty months. Dominion Energy South Carolina Economic Development Rider A 2024 opinion column in the SC Daily Gazette put the resulting price for the Google project in Dorchester County at about six cents per kilowatt hour. The writer called that roughly 60 percent below what Dominion residential customers pay. SC Daily Gazette That number cannot come from this rider alone, because the filed schedule caps the discount at 30 percent and burns it off in five years. The Dorchester power deal was a separately negotiated contract between Dominion and a company identified in the filings as Mallard LLC. The Public Service Commission approved it in early 2024, after the Office of Regulatory Staff said it had no objection. The version on the public docket is heavily redacted. Post and Courier Post and Courier | The rider is available at the company's option to non-residential customers on rate schedules 20, 21, 23, and 24. It is closed to retail trade, educational services, other services, and public administration customers. None of those describes an AI data center. Dominion Energy South Carolina Economic Development Rider The incremental load must be at least 500 kilowatts at one point of delivery. The customer must also either add 25 new permanent full-time employees per 500 kilowatts or make 500,000 dollars of new capital investment per 500 kilowatts. The investment branch is the one an AI data center will use. Dominion Energy South Carolina Economic Development Rider The customer takes on three commitments. 1) Sign an affidavit that the rider was instrumental in the siting decision. 2) Commit to a ten year contract. 3) Take full requirements service from Dominion for the term. Backup generation and battery storage for critical infrastructure are the only carve outs. Early termination claws back every credit received if it happens in the first five years. After that it claws back a sliding share. Dominion Energy South Carolina Economic Development Rider | Active on a tariff effective May 22, 2019 under Public Service Commission Order 2019-375. Nothing in it shuts out an AI data center load. Dominion Energy South Carolina Economic Development Rider Dominion Energy South Carolina economic development Whether large AI data center loads should get discounted power, and how much of the cost of new generation they should carry, was a central fight in the 2026 session. No bill on the subject passed. SC Policy Council SC Daily Gazette |
County and local programs
Aiken County
Meta is building its first South Carolina AI data center at the Sage Mill Industrial Park in Graniteville, a 715,000 square foot facility built for AI workloads, on an 800 million dollar investment supporting 100 operational jobs and expected to be running in spring 2027. Governor of South Carolina WFXG Local reporting describes it as the largest of three AI data centers under construction in the county. Augusta Business Daily Aiken County is a Tier II county for 2026 job tax credit purposes. SC Information Letter 25-21
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Meta fee in lieu of tax agreement, approved under the code name Project Sabal | Property tax replaced by a negotiated fee. Council gave third and final reading to two Project Sabal ordinances on April 18, 2023. That was more than a year before Meta was publicly identified. The counterparty on the record was a Delaware company called Starskey LLC. The project was described as a 900 million dollar investment with fifty jobs. Aiken Chronicles The ordinance itself commits the company to invest or cause to be invested at least 800 million dollars in the county. Post and Courier The Aiken Chronicles reported the Project Sabal fee rate at four percent. The millage lock and the term are not in the public reporting. The county had not published the agreement as of August 2, 2026. Aiken Chronicles Meta was named as the company on August 29, 2024. The state announced a campus that day at Sage Mill Industrial Park in Aiken County, with 100 new operational jobs and a spring 2027 start. Governor of South Carolina Local reporting puts the site at about 300 acres. The two single story buildings total more than 700,000 square feet, and peak construction employment reaches more than 1,000 jobs. WFXG | Set by county ordinance under the state fee in lieu of tax statutes. Those statutes require a county council finding that benefits outweigh costs, and the ordinance recites that finding. Aiken Chronicles An 800 million dollar investment clears the 400 million dollar enhanced investment test. That test would allow an assessment ratio as low as 4 percent and a term reaching the 39th year. S.C. Code 12-44-30(7) The county paired the fee with a joint industrial park reaching into Edgefield County. That is the usual way to qualify for a special source revenue credit. S.C. Code 4-1-170 Aiken Chronicles The reduced ratio and the millage lock both come from Section 12-44-50. S.C. Code 12-44-50 Augusta Business Daily counted three AI data center projects in Aiken County. 1) The Meta campus at Sage Mill. 2) A DC BLOX site on Atomic Road. 3) An Oppidan site on Bettis Academy Road. Augusta Business Daily | In force. Council gave the two Project Sabal ordinances third and final reading on April 18, 2023. Aiken Chronicles Construction at Sage Mill Industrial Park was underway as of late December 2025. The campus is due to open in 2027. Post and Courier The county has not published the term of the fee, so I could not confirm an end date. Aiken Chronicles |
Berkeley County
Google built one of its first United States AI data centers here in 2007 and has kept expanding it at the Mount Holly Commerce Park near Moncks Corner. Google data centers Governor of South Carolina On October 13, 2025 Google announced a new 9 billion dollar South Carolina investment running through 2027 that expands this campus and funds the two Dorchester County builds. Google The county uses fee in lieu of tax agreements and has not published the terms of the Google deals, and as of August 2, 2026 I found no county posting of them. The Post and Courier reported that Berkeley County School District attributed 43.5 million dollars of lost 2017 revenue to fee deals, special source revenue credits, and related structures. Post and Courier
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Fee in lieu of tax agreements for the Google campus | Property tax replaced by a negotiated fee. As part of the 3.3 billion dollar package Google announced in September 2024, the company committed 1.3 billion dollars to expand the existing Berkeley County campus. Governor of South Carolina The October 2025 announcement of 9 billion dollars through 2027 layers on top of that. Google Reporting on the 2019 expansion puts the assessment ratio at 4 percent, the millage rate frozen as of June 30, 2017, and the local subsidies at 50 years. The county itself had not released the agreements as of August 2, 2026. Post and Courier Good Jobs First Google says it has been in South Carolina since 2007, when the Berkeley County campus opened. The company says it has invested more than 13 billion dollars in the state. Google data centers in South Carolina | Set by county ordinance under the state fee in lieu of tax statutes. Those statutes require at least 2.5 million dollars of investment and a county council finding that benefits outweigh costs. S.C. Code 12-44-30 An investment of this size clears the 400 million dollar enhanced investment test. That test would allow an assessment ratio as low as 4 percent and a term reaching the 39th year. S.C. Code 12-44-30(7) Section 12-44-50 is the provision that sets the reduced ratio and locks the millage. S.C. Code 12-44-50 | Active. Berkeley County Council adopted Bill No. 18-45 on third reading on August 27, 2018, by unanimous voice vote. Berkeley County Council legislative file, Bill No. 18-45 That ordinance authorized a fee in lieu of tax and incentive agreement with Maguro Enterprises LLC, the entity Google uses for its Moncks Corner AI data center campus. Data Center Dynamics Council amended that 2018 agreement and an earlier 2006 agreement by unanimous third reading of Bill No. 20-53 on November 23, 2020. Berkeley County Council legislative file, Bill No. 20-53 The county's searchable meeting archive ends with 2022, so any later amendment tied to the 2024 and 2025 expansion announcements is not on that record. |
Chesterfield County
No AI data center incentive agreement was identified. The county moved twice, first with an emergency ordinance in April 2026 and then with a standing ordinance on June 1, 2026. Chesterfield County ordinances Chesterfield is a Tier III county for 2026 and one of the three corporate tax moratorium counties, so the state side incentives available here are unusually generous for a county that has closed its door locally. SC Information Letter 25-21
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Data center moratorium | Not an incentive. The county paused action on new AI data center development. Chesterfield County ordinances | Council adopted Ordinance 25-26-24 on April 6, 2026. That was an emergency ordinance declaring a moratorium on data centers. Council then adopted Ordinance 25-26-23 on June 1, 2026, imposing a temporary moratorium on data centers. Chesterfield County ordinances SC Daily Gazette The county posts its ordinances, but the linked PDF would not load for me on August 2, 2026. The ordinance list gives the title and the adoption date but no length for the pause. Chesterfield County ordinances | In force. The county lists Ordinance 25-26-23, imposing a temporary moratorium on data centers, as adopted on June 1, 2026. It was still on the published ordinance list on July 24, 2026. That list gives no end date, and the scanned ordinance would not open. I could not confirm when the pause lifts. Chesterfield County ordinances |
Colleton County
A proposed AI data center of more than 800 acres was floated for a rural part of the county not far from the ACE Basin, the 350,000 acre estuary fed by the Ashepoo, Combahee, and Edisto rivers. SC Daily Gazette No local incentive was identified. The county adopted a moratorium instead and is facing litigation over the zoning change that made the project possible. Bluffton Today
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Six month data center moratorium | Not an incentive. The moratorium suspends consideration and issuance of special exceptions, conditional use approvals, and all other land use or development approvals for AI data centers. Bluffton Today | Council passed third and final reading on July 6, 2026. The agenda caption still read as a first reading. That looks like an error until you notice the phrase is part of the ordinance's own title. The Southern Environmental Law Center reported the vote as the third and final one. Bluffton Today The pause may be extended. It is meant to give the council, county staff, and the planning commission time to review amendments to the land use code. It also gives them time to decide whether AI data centers belong in the county at all. Bluffton Today In January 2026 the Southern Environmental Law Center filed a complaint in the Colleton County Court of Common Pleas on behalf of two residents. The complaint challenges the zoning ordinance that allowed AI data centers in rural areas. Bluffton Today SC Daily Gazette The pause grew out of an 860 acre campus proposed by Charlotte based Eagle Rock Partners on timberland about four miles southeast of Walterboro. The developer said the 6 billion dollar project would need 1,000 megawatts. It would be the first gigawatt AI data center in the state. SC Daily Gazette | In force. Council adopted it on third and final reading on July 6, 2026, and it runs six months. It lapses in early January 2027 unless council extends it. The Southern Environmental Law Center agreed to hold its zoning lawsuit in abeyance for the six month term. Bluffton Today |
Dorchester County
Google is building two campuses here, one at the Pine Hill Business Campus in Ridgeville and one at the Winding Woods Commerce Park in St. George, which the company announced in September 2024 as a 2 billion dollar investment with 200 operational jobs. Governor of South Carolina Dorchester County data center fact sheet The first Pine Hill building surfaced in 2023 as a 510 million dollar project by a company using a string of aliases, and the county agreed to sell it about 268 acres for 5.84 million dollars, or roughly 21,760 dollars an acre. Post and Courier This is the county whose reported fee terms drew the most criticism statewide.
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Google fee in lieu of tax agreement | Reported terms are a fixed 4 percent assessment ratio with no reassessment of the property value. There is also no property tax on the vehicles and equipment other businesses pay on. SC Daily Gazette The Post and Courier read the agreement and reported that its terms can be extended to 53 years. That lines up with the 53 year figure the commentary used. Post and Courier The 4 percent figure is the floor the statute allows for an enhanced investment. S.C. Code 12-44-50 The county has published a data center fact sheet that covers water and power but not the tax agreement. The full text is still not public. Dorchester County data center fact sheet The state announced the Dorchester County build on September 26, 2024 as a 2 billion dollar investment with 200 operational jobs. The work is split between Pine Hill Business Campus in Ridgeville and Winding Woods Commerce Park in St. George. Governor of South Carolina | Negotiated by county ordinance under the state fee in lieu of tax statutes. S.C. Code 12-44-30 The 4 percent ratio requires an enhanced investment. That means 400 million dollars from a single sponsor, or 150 million dollars plus 125 new full-time jobs. A term past the 29th year requires the same finding. S.C. Code 12-44-30(7) | In force. Council approved the tax break in 2023. Google has since bought the land and filed construction plans for the Pine Hill campus. The county says Google announced a further 9 billion dollar investment on October 13, 2025. Post and Courier Dorchester County data center fact sheet The county has still not published the ordinance, so I could not confirm the exact start or end date. |
| Public Service Commission economic development rider for the Google load | Dominion Energy agreed to sell power to the Pine Hill operator at a special economic development rate. The filings identify that operator as Mallard LLC. The Post and Courier reported the rate was less than half what the utility's residential customers pay. Post and Courier A 2024 opinion column put the delivered price at about six cents per kilowatt hour. SC Daily Gazette | State law requires the Public Service Commission to review a contract offering rates like these. The Office of Regulatory Staff asked the commission to delay its November 30, 2023 vote so it could study the terms. The commission approved the deal in early 2024. Post and Courier Post and Courier The standard filed alternative is the Dominion economic development rider. That rider caps the discount at 30 percent and runs five years. Dominion Energy South Carolina Economic Development Rider | In force. The Public Service Commission approved the Dominion contract with Mallard LLC by Order 2024-112 on February 8, 2024 in Docket 2023-379-E. That order requires annual reporting. The docket is still open. Dominion filed its most recent annual report on January 15, 2026. SC Public Service Commission Docket 2023-379-E |
Greenville County
DC BLOX built the first multi-tenant AI data center in the state to earn Uptime Institute Tier III certification of a constructed facility, at the Global Business Park in Greenville. DC BLOX The announced package was a combined investment of more than 200 million dollars by DC BLOX and its tenant customers with five initial jobs. SC Department of Commerce This is one of only two counties I found receiving a Department of Commerce discretionary award tied to an AI data center. SC Department of Commerce Greenville is a Tier I county for 2026, so the job tax credit here is only 1,500 dollars per job. SC Information Letter 25-21 SC Department of Commerce incentives booklet
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Coordinating Council Set-Aside grant to the county | A 50,000 dollar Set-Aside grant approved by the Coordinating Council for Economic Development and paid to Greenville County. The money helps with the costs of site preparation and building improvements for the DC BLOX project. The grant goes to the county, not to the company. SC Department of Commerce The facility it prepared sits at 33 Global Drive in Greenville. It opened with a ribbon cutting in April 2022. The first phase runs up to 3 megawatts of critical load, with room to reach 18 megawatts. DC BLOX Greenville | Awarded at the discretion of the Coordinating Council for Economic Development in connection with an announced capital investment. The Department of Commerce administers it for infrastructure and site work. SC Department of Commerce discretionary incentives | Spent. This was a one time award approved on September 9, 2020. The AI data center it helped prepare opened in April 2022. Nothing about this grant is ongoing. SC Department of Commerce The Set-Aside program itself is still open to local governments. SC Department of Commerce discretionary incentives |
Greenwood County
No AI data center incentive agreement was identified. Council put a twelve month pause in motion in June 2026 and rejected a separate ordinance that would have allowed AI data centers in certain areas. Fox Carolina SC Daily Gazette Council members disclosed on July 7, 2026 that they are not negotiating with any AI data center company, but that three companies had approached the county with offers worth 30 million to 40 million dollars a year. Fox Carolina Greenwood is a Tier III county for 2026. SC Information Letter 25-21
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Twelve month data center moratorium in progress | Not an incentive. Ordinance 2026-25 would block all new AI data center approvals in the county for twelve months. Index-Journal Fox Carolina | Council held first reading in title only on June 16, 2026. It passed second reading 4 to 3 on July 7, 2026, after hours of public comment. Fox Carolina Index-Journal Third and final reading was set for about two weeks later. That puts it after August 2, 2026, so the moratorium was not yet in force on that date. Fox Carolina Greenwood started the process in the same stretch of June 2026 in which several South Carolina counties paused AI data center development. Those pauses followed a pair of Senate bills setting statewide rules that never reached a floor vote. SC Daily Gazette | In force. Council approved third and final reading by a 4 to 3 vote on July 21, 2026. The ordinance blocks all new AI data center approvals for twelve months. No end date was published with the vote, so I could not confirm the exact expiry. Fox Carolina |
Marion County
A rural Pee Dee county that approved a hyperscale project at a special called meeting during a winter storm, under the code name Project Liberty, with the company listed as Eagle Myra LLC and later identified as Stream Data Centers. WPDE Capital B News The approval process drew statewide criticism for how little the public knew. On June 11, 2026 Stream announced it would not move forward, so the incentive ordinance is on the books and the project behind it is dead. WMBF Marion is a Tier IV county for 2026, which is where the job tax credit is worth the most. SC Information Letter 25-21 SC Department of Commerce incentives booklet
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Project Liberty fee in lieu of tax and incentive agreement | Ordinance 2026-01 does three things. 1) Authorizes a fee in lieu of tax and incentive agreement. 2) Makes the benefits of a multi-county industrial or business park available to the company and the project. 3) Grants special source revenue credits. WPDE That combination is the full South Carolina stack. It means a reduced assessment ratio, a locked millage rate, revenue sharing across two counties, and a credit back against the fee. S.C. Code 12-44-30 S.C. Code 4-1-170 S.C. Code 4-29-68 Stream Data Centers said on June 11, 2026 that it could not source utility power at the site within the required timeframe. The company said it would not proceed. It said the funds it had committed to Marion County would still go to local after school programs, library resources, and similar community uses. Data Center Dynamics WMBF I found no report that the county has repealed the ordinance. As of August 2, 2026 it appears to remain on the books with no company to use it. WBTW | Council gave third and final reading on January 22, 2026 at a special called meeting. Council members had signed nondisclosure agreements. The agenda line item read only Project Liberty, without listing details. Capital B News WPDE The negotiated assessment ratio, millage lock, term, and credit percentage were never made public. The site was roughly 407 acres in the Marion County Industrial Park, with about 60 permanent jobs. The reported price tag depends on the phase. The county deputy administrator described a 2.4 billion dollar figure if the project were fully implemented. Stream and the trade press put the announced build at about 800 million dollars. WBTW Spectrum News Data Center Dynamics | Still on the books and unused. Stream Data Centers said on June 11, 2026 that it would not proceed with Project Liberty, because it could not get utility power at the site in time. I found no report that Marion County has repealed Ordinance 2026-01 as of July 24, 2026. WMBF |
Newberry County
No AI data center incentive agreement was identified. Council took up a moratorium after it voted down an ordinance that would have let a developer buy property in a county owned industrial park for an AI data center. WIS WLTX SC Daily Gazette Newberry is a Tier II county for 2026. SC Information Letter 25-21
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Data center moratorium | Not an incentive. The county stopped accepting new AI data center permit applications for twelve months. WIS | Council voted unanimously on June 3, 2026 to deny the land sale ordinance and put the pause in place. It then confirmed the twelve month moratorium unanimously on July 15, 2026. WIS WIS SC Daily Gazette The clerk to council says the council can extend it. Residents opposing the project cited strain on the water supply, a surge in electric rates, and continuous industrial noise. WIS | In force. Council put the pause in place on June 3, 2026. It unanimously confirmed the twelve month moratorium on July 15, 2026. Neither vote came with a published end date, and council can extend it. I could not confirm an expiry. WIS |
Spartanburg County
Two very different stories run side by side here. NorthMark Strategies and its subsidiary Valara Holdings are converting a former Kohler kitchen and bath plant on South Pine Street into a 2.8 billion dollar computing center. The project plans to generate its own power rather than draw from the grid. It did receive county tax incentives in April 2025. Spartanburg Herald-Journal A separate proposal from TigerDC that was seeking property tax incentives was defeated by public pressure, and the county then paused everything new. Post and Courier SC Daily Gazette
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| NorthMark and Valara fee in lieu of tax agreement | Spartanburg County Council approved the incentive package on April 21, 2025. It covers the 2.8 billion dollar conversion of the former Kohler plant at 4000 South Pine Street. The site runs 271 acres and sits inside Spartanburg County School District 7. Spartanburg Herald-Journal SC Daily Gazette David Britt chairs the council's economic development committee. He said the agreement brings the property tax assessment ratio down from the regular 10 percent level to 4 percent. Spartanburg Herald-Journal Later reporting puts the resulting payment at more than 10 million dollars a year in fees in lieu of taxes. The closed Kohler plant had been generating roughly 500,000 dollars a year. WSPA The SC Daily Gazette reported a 40 year term with the tax bill bought down to at most 2 million dollars a year. SC Daily Gazette The county has not published the millage lock. Spartanburg Herald-Journal | Negotiated by county ordinance under the state fee in lieu of tax statutes. S.C. Code 12-44-30 An investment of this size clears the 400 million dollar enhanced investment test. That test is what allows the 4 percent ratio and a term reaching the 39th year. S.C. Code 12-44-30(7) The company plans to hire 27 full-time staff. It says the build will support between 400 and 600 engineering and construction jobs. Spartanburg Herald-Journal The 4 percent ratio and the millage lock both sit in Section 12-44-50. S.C. Code 12-44-50 | In force. Council approved the package on April 21, 2025. Spartanburg Herald-Journal The campus is under construction on South Pine Street. The county AI data center pause does not reach it. Post and Courier The SC Daily Gazette reported a 40 year term. The county has not published the agreement itself, so I could not confirm an exact end date. Spartanburg Herald-Journal SC Daily Gazette |
| TigerDC fee in lieu of tax proposal, known as Project Spero | No incentive was granted. The company sought a fee in lieu of tax agreement for a project reported at about 3 billion dollars. Post and Courier The agreement it sought would have been authorized under the state fee in lieu of tax statute. S.C. Code 12-44-30 | Council members announced at a February 26, 2026 press conference that they would vote against the fee in lieu of tax agreement. The company withdrew its application that same month. Fox Carolina Post and Courier SC Daily Gazette | Dead. TigerDC withdrew its application in February 2026, after council members said they would vote the fee agreement down. Nothing had been refiled as of July 24, 2026. SC Daily Gazette |
| One year data center moratorium | Not an incentive. The council took a first unanimous vote on June 22, 2026 on a one year pause on new AI data center development. The pause is meant to hold until state lawmakers adopt statewide rules. Fox Carolina Spartanburg Herald-Journal | Council passed first reading at a special called meeting on June 22, 2026. It used a mechanism that froze new projects immediately rather than waiting for final approval. Fox Carolina Two further readings are needed for the ordinance to become permanent. I found no report of a second or third reading through August 2, 2026. The pause is running on that first vote. Spartanburg Herald-Journal The moratorium reaches all pending applications that have not been finalized. Council can extend it past twelve months by vote. It directs staff to study where in the county AI data centers would be appropriate. SC Daily Gazette It does not stop the Valara project. That project is already under development, and it has asked state regulators to raise its permitted capacity from about 50 megawatts to 450 megawatts. Spartanburg Herald-Journal SC Daily Gazette A citizens group sued the county on July 6, 2026 to force the next NorthMark construction phase through planning commission review rather than the minor land development track the county allowed. Southern Environmental Law Center complaint Greenville News | Running on the June 22, 2026 first reading vote but not yet permanent. Council passed second reading on July 20, 2026. It said it wants another public hearing before the third and final vote. That vote could come as soon as August 2026. Fox Carolina |
Union County
A proposed 49 megawatt AI data center at the Midway Green Industrial Park, under the code name Project Alpaca and developed by VoltEdge, sought county tax breaks and did not get them. Fox Carolina The developer marketed a 410 million dollar capital investment, more than 50 permanent jobs, and more than 500 construction jobs. Project Alpaca project sheet Union is a Tier IV county for 2026 and one of three corporate tax moratorium counties, so the state side incentives here are the richest in South Carolina. SC Information Letter 25-21
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Project Alpaca fee in lieu of tax proposal | No incentive was granted. The company sought a fee in lieu of tax agreement. Fox Carolina The developer's own project sheet promised the county more than 1 million dollars a year in taxes for 40 years. The sheet said all 49 megawatts of transmission and generation capacity already exists at Midway Green, so no infrastructure buildout would be required. Project Alpaca project sheet The agreement it sought would have been authorized under the state fee in lieu of tax statute. S.C. Code 12-44-30 | On April 28, 2026 the county council took three actions. 1) Voted to table first reading of the fee in lieu of tax ordinance. 2) Cancelled the public hearing that had been set for May 12. 3) Said it would no longer consider the project for now. Fox Carolina Council said that if the project comes back it will hold a public information forum before deciding on any tax agreement. Fox Carolina WSPA | No agreement is in force. Council tabled first reading on April 28, 2026 and cancelled the May 12 public hearing. I found no report of any further action through July 24, 2026. The ordinance was tabled rather than voted down, so the project can come back. Fox Carolina |
York County
QTS Data Centers is building its first South Carolina campus near Hands Mill Highway and Campbell Road close to Lake Wylie, on a 1 billion dollar investment announced in September 2023. York County Economic Development Governor of South Carolina The county sold QTS 173 acres of industrially zoned land on July 26, 2023, and no rezoning was needed because AI data centers were already a by right use in the Industrial Development District. York County On July 13, 2026 the council voted to impose a nine month moratorium on new AI data centers in unincorporated areas, which runs to about April 2027 unless extended. Fort Mill Sun York is a Tier I county for 2026. SC Information Letter 25-21
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| QTS fee in lieu of tax agreement | The county council passed a resolution committing to a fee in lieu of tax agreement. It approved the agreement itself on September 18, 2023, after three readings and a public hearing. QTS appeared on early agendas under the code name Project Cobra. York County The county says that for every 1 billion dollars of investment QTS will pay about 5 million dollars a year to the Clover School District. It will pay another 2 million dollars a year to the community. York County QTS York County Reporting on the incentive ordinance describes a fee running 40 years, a 4 percent assessment ratio, and an adjustable millage rate. Herald The county itself has not published those terms. It had not done so as of August 2, 2026. York County The state announced the project on September 19, 2023 as a 1 billion dollar investment near Hands Mill Highway and Campbell Road in unincorporated York County. Governor of South Carolina Neighbors near the Lake Wylie site said their concerns grew rather than eased after QTS answered their questions directly in February 2026. Rock Hill Herald | Reported terms require a minimum investment of 900 million dollars and ten jobs within eight years. Herald The eight year window matches the enhanced investment period the statute allows. A 40 year span is consistent with an enhanced investment reaching the 39th year after property is placed in service. S.C. Code 12-44-30 The county also approved a road improvement agreement and passed through a state site improvement grant. In June 2025 it amended the zoning code to allow taller buildings, after QTS said newer low water cooling needed the height. York County That state grant was a 200,000 dollar Set-Aside award from the Coordinating Council for Economic Development to York County for site preparation costs. York County Economic Development The ratio the county negotiated sits in Section 12-44-50. That provision allows a ratio as low as 4 percent. It also lets the agreement fix the millage rate for the life of the fee or move it every fifth year. S.C. Code 12-44-50 | In force. York County Council approved the fee agreement on September 18, 2023. The nine month AI data center moratorium the county adopted on July 13, 2026 does not disturb it. The QTS site plan approvals predate the ordinance and are treated as vested. York County |
| Nine month data center moratorium | Not an incentive. The moratorium blocks the county from accepting or acting on special exceptions, conditional use civil site plans, and other development approvals for new AI data centers in unincorporated areas. York County | Projects with vested rights are exempt. QTS has nine buildings at various stages at its active site. Those site plan approvals came before the ordinance, so the county treats them as vested and lets them proceed. York County The ordinance passed second reading on June 29, 2026. WSOC It took third reading with a public hearing on July 13, 2026, and took effect immediately on that vote. York County Fort Mill Sun The county will use the nine months to study utility rates, energy strain, water use, noise, pollution, and effects on nearby property. The council can extend the pause by resolution if it needs more time. York County WBTV | In force. The ordinance passed third reading on July 13, 2026 and took effect immediately on that vote. It runs nine months, so it lapses in April 2027 unless council extends it. York County |
South Dakota has no tax break written for AI data centers. The 2026 Legislature turned down every exemption and rebate bill put in front of it and instead passed new utility, water, and local control rules for large facilities. SB 135 (2026) South Dakota Searchlight The one state program an AI data center can actually use is the Reinvestment Payment Program. It is a discretionary refund of state sales and use tax on projects costing more than twenty million dollars. The statute does name a data center in its list of eligible projects. SDCL 1-16G-56 Governor's Office of Economic Development I read the award records the state has published for calendar years 2020 through 2026 and no data center of any kind appears in them. GOED Reinvestment Payment Program records
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Reinvestment Payment Program | A discretionary cash payment from the Board of Economic Development of up to the full South Dakota sales and use tax paid on project costs. SDCL 1-16G-56 SDCL 1-16G-59 Governor's Office of Economic Development The state rate is 4.2 percent through June 30, 2027. It goes back to 4.5 percent on July 1, 2027. Municipal sales tax of up to 2 percent is never refunded. South Dakota Department of Revenue SDCL 10-45-2 | Project costs must exceed twenty million dollars for a new or expanded facility, or two million dollars for equipment upgrades. Governor's Office of Economic Development A data center is defined at SDCL 1-16G-56(5). It appears in the list of eligible projects at SDCL 1-16G-56(11). There is no job or wage test anywhere in the statute. SDCL 1-16G-56 The project owner has to apply to the Board of Economic Development no later than 90 days after construction or equipment installation begins. Governor's Office of Economic Development The board asks whether the project would have happened without the payment. It can approve, cut, or deny an award. A building that is not subject to ad valorem real property tax, or to an equivalent tax measured by gross receipts, is excluded. SDCL 1-16G-56(11)(e) SDCL 1-16G-59 GOED eligibility list SDCL 1-16G-68 also bars anyone who works for a project from being paid a commission that depends on landing a government grant, loan, or reinvestment payment. SDCL 1-16G-68 The payment runs to the project owner, so a colocation tenant that buys nothing itself has no path to it. Only one bill would have opened the door to colocated tenants. 2025 Senate Bill 177 would have made the owner hand each tenant documentation of qualified status. It died on the Senate floor. S.D. 2025 SB 177, Senate Taxation engrossed 2025 SB 177 bill history Senate Bill 239 of 2026 would have reshaped the program around large AI data centers. It also failed on the Senate floor. SB 239 (2026) South Dakota Searchlight | Active since 2013. No data center appears in any of the award records the Governor's Office of Economic Development has published for calendar years 2020 through 2026. I read those records on August 2, 2026. The 2026 awards went to an aluminum extruder, an ethanol plant, a dairy processor, and a meat packer. GOED public records Reinvestment Payment Program CY2026 approvals |
| South Dakota Jobs Program grant | A discretionary grant from the Board of Economic Development that offsets the upfront cost of relocating, expanding, or upgrading equipment. It is the companion award for projects that come in under the Reinvestment Payment Program thresholds. Governor's Office of Economic Development | New or expanded facilities with project costs under twenty million dollars, or equipment upgrades with project costs under two million dollars. The Board of Economic Development runs the program and decides every award one at a time. Governor's Office of Economic Development The grant rules live in administrative rule chapter 68:02:10. The board draws its authority to write them from SDCL ch. 1-16G. ARSD 68:02:10:11 That chapter tells the board to set the terms and conditions on which grants are made, including permitted uses, performance criteria, and matching requirements. SDCL 1-16G-8 A small or edge AI data center is the kind of project that would land here rather than in the Reinvestment Payment Program. The Reinvestment Payment Program is where a fifteen megawatt facility like the one planned in Rapid City would sit. Sequitor Edge coverage | Active. Like the Reinvestment Payment Program, it is discretionary, so nothing about it is an entitlement. Governor's Office of Economic Development |
| Discretionary formula property tax reduction | A county board may tax all, any portion, or none of the assessed value of a qualifying new structure for any or all of the five tax years after construction. The assessed value in those years cannot drop below what the property was assessed at in the year before construction. After five years the building is assessed like everything else. SDCL 10-6-137 | The structure has to be a new industrial or commercial building, or an addition, renovation, or reconstruction. Its full and true value has to be thirty thousand dollars or more. The board of county commissioners where the building sits decides whether to adopt a formula at all and how deep the cut goes. It may fully assess a structure if the owner asks. SDCL 10-6-137 The graduated percentage caps sit only on the residential and affordable housing classes, so an AI data center building keeps the flexible all, part, or none version. SDCL 10-6-137.1 Senate Bill 228 of 2026 bars the formula for any property inside a tax increment financing district. It was signed March 12, 2026 and became effective July 1, 2026. SB 228 (2026) SB 228 bill history I looked through the public record in the three counties where AI data centers have been proposed or built. I found no county that adopted the formula for one. Sully County went the other way and made its approval conditional on the operator paying for a third party assessment. Onida Watchman | Active. SB 228 of 2026 narrowed it for property inside a tax increment financing district as of July 1, 2026. SB 228 (2026) SDCL 10-6-137 |
| No personal property tax on equipment | Servers, racks, cooling gear, and every other piece of business equipment face no annual property tax, because South Dakota property tax reaches only real property. The state has no business inventory tax either. Governor's Office of Economic Development Tax Foundation | None. It applies to every business automatically, so an AI data center gets it without filing anything. Governor's Office of Economic Development | Active. This is baseline South Dakota tax law and not a program anyone can lose. Governor's Office of Economic Development |
| No corporate or personal income tax | South Dakota imposes no corporate income tax, no personal income tax, and no comparable franchise tax on an AI data center operator. There are no income tax credits here for the simple reason that there is no income tax to credit against. Governor's Office of Economic Development South Dakota Department of Revenue bank franchise tax | None. It applies automatically. Governor's Office of Economic Development | Active and long standing. Governor's Office of Economic Development |
| Electricity taxed with no data center exemption | None, and that is the point. Electricity is a taxable utility service in South Dakota. An AI data center pays the 4.2 percent state sales and use tax on its power bills. It also pays municipal sales tax of up to 2 percent. South Dakota Department of Revenue There is no general exemption for utilities used in manufacturing or other business operations to fall back on. ICS Tax South Dakota has no AI data center exemption either, which is the whole subject of this row. | Not applicable. South Dakota does not provide a general sales tax exemption for utilities such as electricity, natural gas, or water used in manufacturing or other business operations, so there is nothing here to qualify for and no eligibility criteria to meet. ICS Tax | Active. The 2026 Legislature did not create an electricity exemption. It also rejected the bills that would have exempted equipment and software. South Dakota Searchlight South Dakota Searchlight session wrap |
| Data Center Bill of Rights for Citizens | This is a restriction and not an incentive. It adds a new chapter to title 49. An electricity provider has to set separate terms and conditions for a data center. The provider also has to make the data center reimburse all costs fairly attributed to it. That includes costs the provider is left holding if the data center later leaves the system or materially cuts its load. Before it operates, an operator has to give each local water provider notice of projected water consumption. The operator also has to get a written compatibility determination. That determination goes to the Board of Water Management. The board then issues a public written statement. The board may set water allocation limits once residential and essential public services are served. Operators file semi annual water use reports that the board makes public. The state may not preempt or limit the power of a county, municipality, or other political subdivision to adopt ordinances limiting, prohibiting, or otherwise regulating data centers. SB 135 enrolled text An earlier version banned state tax exemptions for data centers outright. That ban was stripped before the Senate passed the bill 34 to 0. South Dakota Searchlight | It applies to a data center with a peak demand of ten megawatts or greater. That sweeps in every AI data center anyone has proposed in the state. SB 135 enrolled text | Signed by Governor Larry Rhoden on March 24, 2026. South Dakota Searchlight S.D. 2026 SB 135, bill history, South Dakota Legislature |
| PUC cost assessment on data centers | This is a cost and not an incentive. The Public Utilities Commission may charge a data center company the actual cost of the regulatory reviews tied to its project. That moves the expense off ratepayers and onto the AI data center. HB 1038 (2026) | It reaches data centers that are customers of public utilities with peak demand of ten megawatts or more. The bill passed the House 60 to 5. KOTA Radio | Signed by Governor Larry Rhoden on March 24, 2026, the same day as SB 135. South Dakota Searchlight |
County and local programs
Deuel County
Applied Digital proposed a five billion dollar, 430 megawatt AI data center campus near the small town of Toronto, close to Otter Tail Power transmission lines and a natural gas plant in Astoria. South Dakota Searchlight The county never approved an incentive. What it did do, at a joint commission and planning and zoning hearing on February 3, 2026, was vote down a six month moratorium on data centers and approve a one year moratorium on public power plants that requires an environmental and community impact study. I could not reach a primary record or a news report of that February 3 hearing, so treat the vote detail as unsourced here. After the 2026 Legislature rejected data center tax incentives, a company vice president said the project does not make sense at this time and that Applied Digital would let its land agreement lapse at renewal. South Dakota Searchlight The company later told KELOLAND that the Toronto project is unlikely to go forward, and a private land option is not a public record, so the lapse itself will not show up anywhere. KELOLAND
Minnehaha County
Gemini Data Center SD LLC holds city approvals for a 500 megawatt capable AI data center campus on roughly 160 acres in northeastern Sioux Falls, between the city and Brandon. SiouxFalls.Business Sioux Falls annexed the land in October 2025 and made the owner pay to extend utilities to the site, which is the opposite of a subsidy. SDPB The council rezoned the parcel to light industrial on January 6, 2026 after hours of opposing testimony, with no tax deal attached to the vote. SiouxFalls.Business A citizen group called Let Sioux Falls Vote tried to refer the rezoning to a public vote and turned in 378 petition sheets by the January 29, 2026 deadline. City of Sioux Falls Sioux Falls Live The clerk announced the next day that the petition carried 5,012 signatures against the 6,704 valid signatures required, which is five percent of registered voters, so the ordinance stands. SiouxFalls.Business I found no county or city tax break for this project in the public record. After the 2026 session the founder said the project was still alive. Argus Leader The company said its plan was unchanged and that it is looking at programs through the Governor's Office of Economic Development. South Dakota Searchlight
Sully County
Sully County hosts the largest data center in South Dakota, the Big Watt Digital Sully Buttes campus twelve miles west of Onida. It is a 30 megawatt digital asset mining facility sited next to Oahe Electric's substation so that it can draw on the hydroelectric power of the Oahe Dam. The campus is reported as expected to grow toward 300 megawatts. It pays roughly 850,000 dollars a year in gross receipts taxes to the local school district, close to 13 percent of all education property taxes the district collected in fiscal year 2024, and a county official told lawmakers Sully would welcome more projects like it. South Dakota Searchlight There was no local tax break. When the planning and zoning commission recommended the planned unit development on December 28, 2022, it conditioned approval on Big Watt Digital paying to have the property assessed for property tax by a third party assessor, and the operator also paid to rebuild the substation. Onida Watchman
Tennessee gives a qualified data center a full sales and use tax exemption on servers, software, cooling equipment and backup power, and taxes the electricity that runs the building at one and one half percent instead of the ordinary rate. Tenn. Code Ann. § 67-6-206 Sales Tax Notice 16-06 The price of admission is more than 100 million dollars of capital investment and 15 high wage jobs inside three years. Tenn. Code Ann. § 67-6-102(81) Tenn. Code Ann. § 67-6-102 definitions There is no state property tax and no personal income tax. Tennessee Department of Revenue property tax Tennessee Department of Revenue Hall income tax An AI data center that wants property relief has to go to a county or city industrial development board and negotiate a payment in lieu of tax lease. Tenn. Code Ann. § 7-53-305 The break is not free. State and local revenue given up to the data center sales tax exemption runs about 104 million dollars in 2025, 105 million in 2026 and 109 million in 2027, drawn from Tennessee Department of Finance and Administration budget figures. Good Jobs First The harder problem in Tennessee right now is not the tax law. It is that a growing list of counties has closed its land to new AI data centers while it writes rules. Tennessee Lookout
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Qualified data center sales and use tax exemption | No sales or use tax on computers, computer networks, computer software and computer systems used in operating the data center. The exemption also reaches peripheral devices such as printers, plotters, external disc drives, modems and telephone units. Repair parts, repair and installation services, warranty and service contracts, and software maintenance contracts bought for those items are exempt too. Sales Tax Notice 16-06 Form RV-F1325001 Cooling equipment and backup power infrastructure are separately exempt. The statute describes that as cooling systems, cooling towers and other temperature control infrastructure. It also covers backup power generation, battery systems and related infrastructure. Each has to be used primarily for and necessary to the operations of the qualified data center. Tenn. Code Ann. § 67-6-206(c)(2) Tennessee charges a seven percent state sales tax. Local rates run as high as 2.75 percent. A one billion dollar equipment and cooling buy can avoid something close to 97 million dollars of tax. Tennessee Department of Revenue tax rates | Over an investment period of no more than three years the taxpayer has to put more than 100 million dollars into real property, tangible property or computer software. That property has to be owned or leased in Tennessee and used in operating the data center. The taxpayer also has to create at least 15 net new full time permanent jobs. Sales Tax Notice 16-06 Form RV-F1325001 Full time means at least 37 and one half hours per week held for at least 12 consecutive months. The jobs have to pay at least 150 percent of the state average occupational wage with minimum health care. Tennessee Department of Economic and Community Development incentives sheet The commissioner of economic and community development may stretch the investment period to four years for good cause shown. Investment counts as of the date of payment or the date the taxpayer signs a legally binding purchase or construction commitment. Sales Tax Notice 16-06 Form RV-F1325001 The taxpayer applies to the Department of Revenue on form RV-F1325001 and gets a certificate for each data center location. The certificate makes the holder liable for tax, penalty and interest if it uses the certificate in any manner other than prescribed by law. It also has to notify the Department immediately if it ceases to exist, moves, or changes its form of organization. Form RV-F1325001 Qualified Data Center Certificate of Exemption Public Chapter 886 of 2024, House Bill 2182, added a second path. A center that already met the investment and jobs tests keeps its status when it is transferred to an affiliate. The transfer has to be a reorganization under section 368(a) of the Internal Revenue Code. The act passed April 11, 2024. It amends subdivision (81) of the sales tax definitions by name. That settles where the qualified data center definition sits in the code. Public Chapter 886 of 2024 That subdivision is Tenn. Code Ann. § 67-6-102(81). | Active, with no sunset date, and untouched by the 2026 legislative session. Tennessee Department of Economic and Community Development incentives sheet Tennessee Lookout, 2026 data center bill notebook |
| Reduced one and one half percent sales tax rate on electricity | Electricity sold to or used by a qualified data center is taxed at one and one half percent rather than the general state rate of seven percent plus local tax. Tenn. Code Ann. § 67-6-206(c)(1) Tennessee Department of Revenue tax rates Tennessee already gives manufacturers that same reduced rate on energy fuels. Tenn. Code Ann. § 67-6-206(b)(1) The provision puts an AI data center on the industrial footing rather than the ordinary commercial footing. Sales Tax Notice 16-06 On a campus drawing hundreds of megawatts the saving runs into millions of dollars a year. | The buyer has to be a qualified data center under the same more than 100 million dollars and 15 jobs test. Sales Tax Notice 16-06 The exemption certificate the Department of Revenue issues on approval of form RV-F1325001 is what lets the utility bill electricity at the reduced rate. Form RV-F1325001 Qualified Data Center Certificate of Exemption | Active, and like the equipment exemption it carries no sunset. It was not changed in 2026. Tennessee Department of Economic and Community Development incentives sheet Tennessee Lookout, 2026 data center bill notebook |
| Franchise and excise job tax credit | A credit of 4,500 dollars against franchise and excise tax for each qualified new job. The standard credit offsets up to 50 percent of franchise and excise liability in a year. Any unused credit carries forward for up to 25 years. Tennessee Department of Revenue job tax credit A company locating or expanding in a designated Tier 2, Tier 3 or Tier 4 enhancement county gets an enhanced credit on top. That credit is an additional 4,500 dollars per position each year. It runs three years in Tier 2 and five years in Tier 3 and Tier 4. There is no carry forward, but the enhanced credit can offset up to 100 percent of franchise and excise liability. A separate community resurgence credit pays 2,500 dollars per position for a project in a qualified census tract. Tennessee Department of Economic and Community Development incentives sheet There is also a higher level of investment and job creation credit. It pays 5,000 dollars per industrial wage job every year for a fixed run. The length of the run depends on the investment. It is 1) 20 years at one billion dollars with 500 such jobs, 2) 12 years at 500 million dollars with 500 jobs, 3) 6 years at 250 million dollars with 250 jobs and 4) 3 years at 100 million dollars with 100 jobs. Qualifying for it also lifts the standard credit from 4,500 dollars to 5,000 dollars per job. The catch for an AI data center is the headcount. The sales tax exemption asks for 15 jobs. This credit asks for 100 at the same 100 million dollar investment level. Franchise and Excise Tax Manual, June 2025, pages 456 to 458 Tennessee excise tax is 6.5 percent of net earnings. Franchise tax is charged on apportioned net worth. Franchise and Excise Tax Manual, June 2025, page 20 Any of this is useful only to a taxpayer with Tennessee liability to shelter. Tenn. Code Ann. § 67-4-2109 | The company has to be a qualified business enterprise. Computer services is one of the listed categories. The company has to file a job tax credit business plan on form RV-F1308601 and get it approved before taking any credit on a return. Form RV-F1308601 The standard credit needs at least 25 net new full time positions created within a 36 month period. It also needs at least 500,000 dollars of investment in the qualified business enterprise. The enhanced credit uses lower job counts in the more distressed tiers. Those are 25 positions in Tier 2, 20 in Tier 3 and 10 in Tier 4. Each carries the same 500,000 dollar investment floor. Tennessee Department of Revenue job tax credit A qualified job has to be 1) permanent rather than seasonal or part time, 2) at least 12 consecutive months long, 3) at least 37 and one half hours per week on average and 4) covered by offered health coverage. It counts as new only if the position did not exist anywhere in Tennessee for at least 90 days before it was filled. A taxpayer may claim either the enhancement county credit or the higher investment credit for a given investment period, not both. Franchise and Excise Tax Manual, June 2025 A qualified data center has one extra hoop. It has to certify on the business plan that it has not been found in violation of the federal Worker Adjustment and Retraining Notification Act, the Fair Labor Standards Act or federal immigration laws in the previous 12 months. Failing to certify disqualifies it from the credit entirely. That rule applies for tax years ending on or after July 1, 2016. Franchise and Excise Tax Manual, June 2025, page 454 Tenn. Code Ann. § 67-6-206(d) | Active, and the 2026 session left it alone. Tennessee Department of Economic and Community Development incentives sheet Tennessee Lookout, 2026 data center bill notebook |
| FastTrack grants | Discretionary grants run by the Tennessee Department of Economic and Community Development. Infrastructure and economic development grants go to the local government on behalf of the company. Job training grants go to the company itself. FastTrack infrastructure development pays for public infrastructure such as water, sewer, road and site work serving the project. FastTrack job training assistance offsets the cost of training new employees. The FastTrack economic development fund reimburses other relocation and expansion costs the other two do not cover, such as moving equipment, temporary space, retrofitting and capital improvements. Tenn. Code Ann. § 4-3-717 Tennessee Department of Economic and Community Development incentives sheet Nothing here is written for AI data centers and there is no published formula. Every award is negotiated. Tennessee Department of Economic and Community Development incentives and grants | The local community applies on behalf of the company rather than the company applying directly. Tenn. Code Ann. § 4-3-717 Eligibility and funding levels turn on 1) the number of net new full time jobs, 2) the weighted average wage of those jobs, 3) the amount of company investment, 4) the skills involved and 5) where the project sits. Tenn. Code Ann. § 4-3-716 Tennessee Department of Economic and Community Development incentives and grants Infrastructure development grants require local matching funds. They also require the community to grant a payment in lieu of tax on real property for at least five years. The state grant and the local property tax deal are tied together in practice. The economic development fund is held back for exceptional cases where the impact on the community is significant. A project in a county the Appalachian Regional Commission designates as at risk can draw a 35 percent premium. One in a distressed county can draw a 50 percent premium. Both apply only where the average starting wage beats the county median wage. Tennessee Department of Economic and Community Development incentives sheet Grants may be subject to an accountability agreement signed by the state, the community and the company. The state cannot provide anything before that contract is executed and approved. Tennessee Department of Economic and Community Development incentives sheet Tenn. Code Ann. § 4-3-717 | Active and discretionary, with awards made deal by deal. Tennessee Department of Economic and Community Development incentives and grants |
| Payment in lieu of tax leases through industrial development boards | The only route to property tax relief in Tennessee. Cities and counties cannot abate taxes for a private party directly. The project is instead transferred to a city or county industrial development board, which is tax exempt as a public body. The board leases it back to the company. The company then makes a negotiated payment instead of ad valorem tax. University of Tennessee County Technical Assistance Service Real property and tangible personal property such as servers can both go into the project. Terms in practice run roughly 10 to 20 years of partial abatement. Hamilton County reports that its participants are typically granted 10 to 20 years. Hamilton County PILOT program | The board has to receive a formal delegation of authority from the city or county that created it. The creating government may require each negotiated agreement to come back for final approval. Before approval the board has to hold a public meeting on the proposed agreement. Notice of at least five days has to state the time, place and purpose. The board also has to attach a cost and benefit analysis prepared as the commissioner of economic and community development prescribes. Tenn. Code Ann. § 7-53-305 No agreement, renewal or extension may keep payments below the ad valorem taxes otherwise due for longer than 20 years. A reasonable construction or installation period of up to three years may be added on top. That ceiling lifts only if both the commissioner of economic and community development and the comptroller of the treasury make a written determination. The determination has to find that the deal is in the best interest of the state. Tenn. Code Ann. § 7-53-305 Businesses leasing from these boards report annually to the State Board of Equalization. That reporting is how the public gets any visibility into these agreements at all. Tennessee Comptroller PILOT reporting | Active statewide, and the workhorse of local AI data center dealmaking in Tennessee. University of Tennessee County Technical Assistance Service |
County and local programs
Bradley County
Cleveland, north of Chattanooga. Bradley is the one county in this file that has already written permanent rules rather than a timed pause, so it shows where the rest of the state is heading. Chattanooga Times Free Press
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Expired moratorium replaced by zoning regulations | Not an incentive. Bradley County appears in regional reporting among the East Tennessee counties that put a temporary hold on data centers, but I could not source the ordinance or its expiry date. What is documented is that the county wrote zoning rather than banning outright. On April 20, 2026 the commission unanimously adopted the first Bradley County regulations on cryptocurrency mining and data centers. That came after a public hearing where more than 30 residents spoke. The rules add definitions, general provisions and limits on how close these facilities may sit to residential areas, schools and farmland. Cleveland Daily Banner WDEF | The version carried on the April 13, 2026 work session agenda would have permitted these uses in the I-1 general industrial district. Bradley County work session agenda The commission strengthened it on the floor. The adopted text confines them to I-2, the Special Impact Industrial District. The county has exactly one such district, the Bradley County Landfill. One commissioner said the rules make approval about 99.9 percent impossible. WDEF Chattanooga Times Free Press The county attorney told the commission this was as far as it could go without inviting the kind of suit the Beacon Center filed against Hawkins County. Zoning has to fit a lawful business into some zone rather than ban it outright. WDEF | Adopted on April 20, 2026 and in force now. No application has been filed under the new rules since adoption. Cleveland Daily Banner |
Coffee County
Manchester and Tullahoma in south central Tennessee. Rural land and interstate frontage drew developer interest, and the county responded in June 2026 with a one year pause aimed at rewriting its zoning. News Channel 5
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| One year data center moratorium | Not an incentive. The Coffee County Commission approved a one year moratorium on new data centers at its June 9, 2026 meeting. Residents had raised water and infrastructure concerns. The vote came a week after plans for a project at Arnold Air Force Base in Tullahoma fell through. News Channel 5 News Channel 5 on the mayor's proposal County Mayor Dennis Hunt had urged the pause. He said he believed zoning district A1, the agricultural district, would let a data center in because its permitted uses include utility facilities. News Channel 5 on the mayor's proposal | The stated purpose is to let the planning commission review and propose county wide zoning changes before any project is approved. The pause freezes approvals, permits and construction while that work is done. News Channel 5 Reporting describes no megawatt trigger, so the pause reaches the category as a whole. Resolution 2026-10 at that same meeting was the McMinnville Highway rezoning rather than the moratorium. That is worth knowing if you go looking for the number. Coffee County Commission minutes, June 9, 2026 While the pause runs, the county planning commission has voted to allow these facilities only in the M-2 Special Impact Industrial District rather than on farmland. It is also weighing 1) a 35 foot height cap, 2) water quality testing, 3) landscape buffers and 4) a bond or fund to cover decommissioning costs. County Mayor Dennis Hunt hopes for a zoning resolution ready for the county commission by October. News Channel 5 | Adopted unanimously on June 9, 2026 and in force now, running one year, so into June 2027. News Channel 5 |
Davidson County
Nashville and the largest concentration of AI data centers in the state. Metro is not offering incentives for them. It is moving the other way, toward a moratorium and hard zoning limits, after two proposed projects drew heavy opposition. Nashville Banner
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| No data center incentive identified | None. Metro Nashville and Davidson County has no tax program written for AI data centers. Metro Nashville growth incentives Its industrial development board can grant payment in lieu of tax leases under state law like any other. No such agreement for one of these facilities appears in the state comptroller records. Tennessee Lookout Tennessee Comptroller PILOT reporting | Not applicable. | Nothing is in force. Metro Nashville lists job grants, payment in lieu of tax and tax increment financing among its growth incentives as of July 2026. None of them is written for AI data centers. Metro Nashville growth incentives |
| Mayoral executive order 59 and the moratorium and zoning bills | Not an incentive. On June 15, 2026 Mayor Freddie O'Connell issued Executive Order 59. It directs Metro departments to evaluate the impacts of large scale data centers. It also directs them to support expedited consideration of a temporary moratorium while a permitting and review framework is built. Metro Nashville Executive Order 59 Three ordinances followed. BL2026-1391 amends Title 17 of the Metro code to add data center uses, definitions and conditions to the zoning code. That includes a ban on the largest facilities. It also includes buffer zones keeping them away from schools, hospitals and transit corridors. Nashville Banner BL2026-1392 is its companion and authorizes building material restrictions and requirements. BL2026-1448 declares a temporary moratorium on acceptance, processing, approval and issuance of zoning, building and grading permits for these projects. BL2026-1448 BL2026-1392 | All three bills passed second reading on July 7, 2026. Public hearings drew about 178 speakers. Each needs a third and final reading expected as soon as July 21, 2026. That date falls after this file was verified. As of August 2, 2026 none is final. Nashville Banner Chattanooga Times Free Press The moratorium is written to lift once Metro adopts the zoning rules. The zoning bills and the moratorium are moving together, so the moratorium may never actually take effect. Reporting also notes the new rules may come too late to reach the DC Blox project next to the Nashville Zoo. That project has already applied for permits. The mayor separately filed legislation to begin condemning that adjacent property. Nashville Banner | All three bills passed third and final reading on July 21, 2026 and are in effect now. The zoning rules in BL2026-1391 and BL2026-1392 carry no end date. The permit moratorium in BL2026-1448 runs through December 1, 2026. Nashville Banner |
Hamilton County
Chattanooga markets itself on EPB municipal fiber and gigabit power infrastructure and is drawing AI data center interest downtown. City of Chattanooga on EPB fiber Three separate boards grant payment in lieu of tax deals here and the county publishes its full participant list, which is unusually transparent for Tennessee. Hamilton County PILOT program On July 15, 2026 the county closed its rural land to new projects for a year. Chattanooga Times Free Press
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Hamilton County and City of Chattanooga PILOT program | Payments in lieu of taxes are administered by three boards. They are 1) the Industrial Development Board of Chattanooga, 2) the Industrial Development Board of Hamilton County and 3) the Health Education and Housing Facilities Board. The county notes that participants are typically granted 10 to 20 years. It publishes annual documents naming each company, the length of participation, the expected taxes and the exemption granted. Hamilton County PILOT program | The standard state framework under the industrial development board statute. Tenn. Code Ann. § 7-53-305 Chattanooga has been reported to use a points based matrix keyed to investment and jobs when deciding whether a proposal can go straight to the board. The article is paywalled, so the matrix itself could not be read. Chattanooga Times Free Press The city board also runs tax increment financing and development agreements for infrastructure. That is how several Chattanooga industrial park projects have been funded. City of Chattanooga board agenda | Active, with no sunset. The county publishes a participant record every year. The most recent one posted covers tax year 2025. Hamilton County PILOT program |
| One year moratorium on new data centers in unincorporated Hamilton County | Not an incentive. On July 15, 2026 the Hamilton County Commission voted unanimously for a one year moratorium on new data centers in the unincorporated parts of the county. County Mayor Weston Wamp proposed it in late June 2026. He said the intent is to write zoning codes restrictive enough to prevent them in unincorporated Hamilton County. He based that on his discussions with area utilities. Chattanooga Times Free Press Local 3 News The measure reaches a business that primarily uses electronic equipment to process, store or transmit digital information and needs environmental controls for that equipment. The peak electric demand threshold is 1 megawatt. That is the lowest trigger of any Tennessee county pause found for this file. Chattanooga Times Free Press WDEF | The pause applies only in unincorporated areas, so the City of Chattanooga and the other incorporated municipalities are not covered. The county planning department is to study utility infrastructure, light and noise pollution and other environmental impacts during the year. It is to present zoning regulations by March 2027. Chattanooga Times Free Press Commissioners considered a longer pause. The county attorney advised that Tennessee law requires a moratorium to have an express purpose. The attorney recommended one year to reduce the risk of a legal challenge. That risk is live given the federal suit against Hawkins County over its outright ban. Local 3 News Beacon Center of Tennessee | Adopted on July 15, 2026 and in force now, running one year, so into July 2027. Local 3 News |
| No data center specific abatement identified | None found. A January 2026 proposal by Urban Story Ventures asked the Hamilton County Commission to lease a downtown building at 601 Walnut Street for a project with a data center component. Residents petitioned for a public input process. No approved abatement for an AI data center appears in the county participant records. Change.org petition Hamilton County PILOT program | Not applicable. | No abatement is in force. On March 18, 2026 the county commission approved a 35 year lease of the 601 Walnut Street building. Rent starts at 375,000 dollars a year and rises 3 percent annually. That is rent paid to the county rather than a tax break. The commission also amended the deal to cap the data processing and storage use at 12,000 square feet. Chattanoogan |
Knox County
Knoxville and Oak Ridge sit in an energy and research corridor that should be attractive, but Knox County shut the door in June 2026 with the most aggressive AI data center moratorium in Tennessee. New projects are barred outright, not merely delayed in permitting. WBIR WVLT Knox County Commission
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| One year data center moratorium | Not an incentive. On June 22, 2026 the Knox County Commission voted 10 to 0 to prohibit the operation of data centers in Knox County through June 30, 2027, with power to extend. WBIR WVLT The resolution defines a data center as a private business that primarily operates equipment to process, store or transmit digital information, along with the environmental control equipment for it. It also has to either be projected to have a peak electric demand of 5 megawatts or refuse to disclose its peak demand. Artificial intelligence and cryptocurrency mining operations are covered. Knox County Commission | Five existing facilities are grandfathered by name. They are Bitdeer Tennessee, Infinity Data Center, Scipio Technologies, Tenhats Knoxville and Windstream Knoxville. Those five may not 1) expand by increasing their contracted peak power with the local utility, 2) use gas turbines or other alternative generation to meet demand above that contract or 3) supplant utility service with self generation. Knox County Commission State owned operations are excluded outright. County owned operations are excluded too, but only on a condition. Knox County may not lease to a nongovernmental third party any operating capacity that would require peak electric demand greater than 5 megawatts. The pause runs through June 30, 2027 and may be extended by a further vote. The commission can end it earlier by adopting regulations governing the placement and operation of these facilities. Knox County Commission WVLT WBIR The Knoxville mayor separately asked Knoxville and Knox County Planning for zoning recommendations and called for a matching city moratorium. WATE | Adopted 10 to 0 on June 22, 2026, effective immediately and running through June 30, 2027. The commission may vote to extend it past that date. WVLT Knox County Commission |
Loudon County
Between Knoxville and the Tennessee River, inside the same East Tennessee corridor as Knox and Roane. Loudon paused AI data center approvals in June 2026 after public objections. WVLT
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Six month data center moratorium | Not an incentive. The Loudon County Commission voted on June 29, 2026 to impose a temporary six month moratorium on approvals. The language allows a further six months pending the outcome of litigation. The vote followed public comment raising environmental and infrastructure concerns. WVLT Loudon County Commission June 29, 2026 meeting packet | The pause reaches county permits, zoning approvals, building approvals and utility extensions rather than the operation of existing facilities. That makes it narrower than the Knox County measure next door. Reporting describes no megawatt threshold. WVLT The litigation the extension language points at is the Beacon Center challenge to the Hawkins County ban. That is why East Tennessee counties are drafting timed pauses rather than prohibitions. Beacon Center of Tennessee | Adopted on June 29, 2026 and in force now, running six months, so to about December 29, 2026. Commissioners may extend it. WVLT |
Maury County
Columbia and Spring Hill, on the fast growing southern edge of the Nashville metro. Maury adopted a 12 month AI data center pause on July 20, 2026 after its planning commission recommended one. Main Street Media Southern Middle Tennessee Today
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Recommended data center moratorium | Not an incentive. The Maury County Planning Commission recommended that the county halt new data center permits for up to 12 months or until it establishes formal regulations. The county zoning attorney told the commission that the existing standards were written with smaller facilities in mind. They do not anticipate the large projects now being proposed. Main Street Media | The Maury County Commission was to take up the recommendation in July 2026. That date falls after this file was verified. Nothing was adopted as of August 2, 2026. Main Street Media | No longer just a recommendation. The county commission adopted a 12 month pause on July 20, 2026 and rejected an amendment that would have pushed it to 24 months. It is in force now. Southern Middle Tennessee Today Muletown Journal |
Montgomery County
Clarksville, home of the Google AI data center built on the former Hemlock Semiconductor site. Tennessee Department of Economic and Community Development, Google Clarksville announcement The Clarksville and Montgomery County Industrial Development Board has been the most aggressive payment in lieu of tax grantor in the state for this asset class, and the deal terms have been fought over in public for years. Leaf Chronicle
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Google payment in lieu of tax agreement | The Industrial Development Board of Montgomery County signed a payment in lieu of tax agreement with Google on December 22, 2015. The point was to induce the company to build and operate an information technology center near Clarksville. Google was relieved from paying any taxes on the land for 20 years. It paid no taxes on its equipment and buildings for four years. The board also had authority to issue as much as two billion dollars in industrial revenue bonds to help finance additional facilities. Tennessee Coalition for Open Government The initial build was announced at 600 million dollars. Light Reading Google broke ground in February 2018 and opened the facility in November 2019. Clarksville Now Google added a further 25 million dollars of investment in 2022. Main Street Media | The agreement set three targets. They are 1) 34 direct hires, 2) 70 full time equivalent hires that could include contract and part time workers and 3) 600 million dollars of investment. A sliding scale costs Google part of the break if it misses. Google reports to the board annually, though reporting was not required until after the fifth year. Tennessee Coalition for Open Government Much of the deal is still not public, and that is by design rather than by oversight. A non disclosure clause inside the agreement commits the board to withhold the agreement and the annual reports. It also commits the board to use its best efforts legally permissible to resist a court order releasing them. The cost and benefit analysis came out only in redacted form after a newspaper threatened suit. The 20 year land figure and the four year equipment and buildings figure come from that watchdog account rather than from the document itself. As of August 2, 2026 the full text has still not been released. Tennessee Coalition for Open Government Leaf Chronicle The lease structure itself runs under Tenn. Code Ann. § 7-53-305. | In force. The board signed the agreement on December 22, 2015, so the 20 year relief on the land runs into 2035. The full relief on equipment and buildings ran four years and gave way to partial payments after that. Tennessee Coalition for Open Government |
| Clarksville and Montgomery County IDB tiered PILOT policy | The board grades projects into tiers. The top tier carries a 20 year abatement. In December 2025 it approved a Tier 5 twenty year payment in lieu of tax agreement. The local partnership called that project the largest direct foreign investment in state history. The deal shows the ceiling the board will reach for a large capital project. Clarksville Montgomery County Economic Development Council | Tier placement turns on capital investment and jobs. Clarksville Montgomery County Economic Development Council Clarksville Montgomery County Industrial Development Board The City of Clarksville moved to require city approval and involvement in these negotiations. It did that after losing tax revenue on an agreement it was never told about. A project should expect both the county board and the city at the table. Clarksville Now The abatement takes the form of a board lease under Tenn. Code Ann. § 7-53-305. | Active, with no sunset. The board reached the top tier as recently as December 15, 2025. It approved a Tier 5 twenty year agreement for Korea Zinc on a 6.6 billion dollar capital investment. Clarksville Montgomery County Economic Development Council |
Robertson County
Farmland north of Nashville running to the Kentucky line. The county itself has taken no action that I could find, but the small town of Cedar Hill inside it adopted one of the longest pauses in the state. News Channel 5
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Cedar Hill two year town moratorium | Not an incentive. The mayor and city commission of Cedar Hill, a town in Robertson County, passed a two year moratorium on data centers. The mayor called it preemptive, since no project is being pursued in Cedar Hill. A proposed facility just over the state line in Franklin, Kentucky prompted the action. The town is largely farmland, which the mayor said makes it a target. News Channel 5 | The moratorium is a town measure and reaches only Cedar Hill, not Robertson County generally. It buys the town two years to weigh more permanent zoning. No county wide Robertson action has surfaced. News Channel 5 | Adopted at the city commission meeting of June 1, 2026 and in force now, running two years, so into June 2028. Main Street Media |
Shelby County
Memphis and the largest AI compute cluster in the state. The xAI Colossus and Colossus 2 facilities sit here and the company did not take a local tax break, which makes Shelby the rare place where a giant AI data center pays property tax without an abatement. Commercial Appeal Daily Memphian
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| EDGE Jobs PILOT | The standard Memphis and Shelby County property tax abatement. It is offered through the Economic Development Growth Engine, the joint industrial development board of the City of Memphis and Shelby County. The published program comparison puts the Jobs PILOT at a maximum term of 15 years with a 75 percent abatement on real and tangible personal property. EDGE tax incentives A Shelby County program overview describes the benefit as 75 percent of county property taxes. For projects inside Memphis it describes 90 percent of city property taxes. Shelby County PILOT program overview | Aimed at new industrial, distribution, office and other non retail commercial projects. The published screen calls for 1) more than 15 net new jobs, 2) more than one million dollars of investment, 3) a minimum wage of 13 dollars an hour and 4) employer sponsored health benefits for at least half the workforce. Local contracting commitments are required too. Memphis incentives overview Applicants have to pass a but for test showing the project would not happen without the abatement. The process runs pre application meeting, application, staff analysis, EDGE board approval, mayoral review by both the city and the county, then closing. EDGE tax incentives The abatement itself takes the form of a lease from the joint board under Tenn. Code Ann. § 7-53-305. | Active and open to applications, with an application form posted and no sunset or suspension published. EDGE tax incentives |
| xAI Colossus, no local incentive taken | None. EDGE said in June 2024 that it had neither received nor proposed incentives for the xAI investment. Reporting since has confirmed the company did not take the standard abatement Memphis offers. Commercial Appeal Daily Memphian The company pays ordinary property tax. Projections reported in March 2026 put the xAI expansion at nearly 28 million dollars in Shelby County property taxes as its second Memphis data center comes onto the tax rolls. That is more than double what the company paid the year before. Action News 5 | Not applicable. The project went ahead without an abatement agreement. That also means it carries none of the job and wage clawbacks a payment in lieu of tax deal would impose. Commercial Appeal Whether xAI holds a state qualified data center exemption certificate is a separate question. It cannot be answered from public records. Tennessee is one of the states that does not disclose which companies receive data center subsidies. Good Jobs First, Cloudy Data Costly Deals, Table 2 | No local abatement is in force. The Greater Memphis Chamber states that xAI took no incentives from the state to locate in Memphis. It also states the company has already paid tens of millions of dollars in local tax revenue. Greater Memphis Chamber |
| EDGE tax increment financing | Captures the increase in property taxes inside a designated area and sends that increment back to project infrastructure under an approved economic impact plan. Useful for site work and utility extension rather than for cutting the operating tax bill. EDGE tax incentives | Requires a designated tax increment financing area and an economic impact plan approved through EDGE and the city and county. EDGE tax incentives | Active, with six tax increment financing projects running in Shelby County and no sunset or suspension published. EDGE tax incentives |
Sumner County
Gallatin hosts the Meta campus, one of the largest AI data center sites in Tennessee at more than 900 acres. The county was an early and enthusiastic host and is now the place where local sentiment is turning, with a two year city moratorium proposed in June 2026. WSMV
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Meta Gallatin data center | Announced on August 12, 2020 as an 800 million dollar project recruited jointly by the Gallatin Economic Development Agency, the state and the Tennessee Valley Authority. Tennessee Department of Economic and Community Development Tennessee Department of Economic and Community Development news release Total investment is now put at more than 1.5 billion dollars across a campus of about 900 acres. It is the 17th Meta data center globally and the 13th in the United States. Tennessee Valley Authority renewable agreements back more than 500 megawatts of local solar for it. WKRN DPR Construction Construction peaked at about 1,100 skilled trade workers on site. The finished campus supports over 100 operating jobs. Meta has layered in community giving. That includes 1) more than 1.4 million dollars in direct funding to Sumner County area schools and nonprofits, 2) a 250,000 dollar grant to the Gallatin Shalom Zone and 3) annual community action grants. WKRN Meta Gallatin Data Center fact sheet | The local deal is real and it is on the record. Meta assembled the site under the name Woolhawk LLC, a Delaware company. It bought 809 acres for 20 million dollars. Data Center Knowledge On May 19, 2020 the Gallatin City Council authorized Mayor Paige Brown to sign a development agreement with Woolhawk. The project was then described as 750 million dollars on 225 acres. Fox 17 The payment in lieu of tax agreement the Gallatin Industrial Development Board proposed runs 20 years plus construction time. That is the statutory ceiling. Payments start at one million dollars a year for the first building and fall on a declining scale for each building after that. The Tennessean reported the minimum as 4.25 million dollars annually. Gallatin council member Pascal Jouvence, who read the agreement The Tennessean Woolhawk LLC now appears in the subsidy tracker as a Meta subsidiary holding a Gallatin payment in lieu of tax deal reported to the state comptroller. The dollar value of the abatement is undisclosed. Good Jobs First Subsidy Tracker Gallatin Industrial Development Board The lease structure runs under Tenn. Code Ann. § 7-53-305. | In force. The Gallatin City Council approved the payment in lieu of tax resolution in May 2020 on a term of 20 years plus construction time. The Tennessean The abatement is live today. Gallatin council member Pascal Jouvence, who read the agreement |
| Proposed Gallatin two year moratorium on data centers and cryptocurrency mining | Not an incentive. On June 23, 2026 Gallatin city council member Pascal Jouvence introduced a two year moratorium. It would stop the acceptance, review, approval, permitting and development of new data centers and cryptocurrency mining facilities inside the city. The point is to let the city study impacts on 1) electrical infrastructure, 2) water and wastewater systems, 3) transportation, 4) emergency services, 5) noise and 6) current zoning. WSMV The council deferred the vote that night after residents described construction noise and water runoff from the Meta build. It moved the measure forward again on July 14, 2026. Fox 17 WSMV | Nothing was adopted as of August 2, 2026. A developer looking at Gallatin should treat city entitlement as an open question. WSMV | Still not adopted. On July 22, 2026 the council instead referred the pause to the Gallatin Municipal Planning Commission for evaluation and a recommendation. The council expects to take that recommendation up in September 2026. Fox 17 |
Washington County
Johnson City and the Tri Cities. Washington County moved earliest of any Tennessee county in this file, adopting an AI data center moratorium in March 2026, months before the wave that followed in June and July. WJHL
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| One year data center moratorium | Not an incentive. The Washington County Commission voted 13 to 2 on March 23, 2026 to adopt a moratorium, effective immediately on passage and running through June 30, 2027. WJHL Electric 94.9 The request came from the county planning commission and was recommended by the county Commerce, Industrial and Agriculture committee on March 5, 2026. The resolution recites that these facilities require extraordinary levels of electrical power, often equal to the consumption of thousands of homes. It also recites that they strain local utilities. WJHL | The measure forbids the construction, operation and permitting of data centers, including cryptocurrency mines, through June 30, 2027. Reporting describes no megawatt floor and no facility grandfathered by name. On its face it reaches the whole category. Electric 94.9 That breadth is worth weighing against the federal challenge the Beacon Center has brought to the outright Hawkins County ban. That suit argues a blanket prohibition on a lawful industry is constitutionally suspect. ExoticRidge complaint | Adopted 13 to 2 on March 23, 2026, effective immediately on passage and running through June 30, 2027. Electric 94.9 |
Wilson County
Mt. Juliet and Lebanon sit on the eastern edge of the Nashville metro with the interstate access and land developers want. The county offers payment in lieu of tax abatements as a general matter but moved in June 2026 to pause AI data centers specifically. Wilson County economic development Main Street Media
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| General property tax abatement through payment in lieu of taxes | Wilson County lists property tax abatement on real and personal property through a payment in lieu of tax agreement as one of the incentives typically offered to qualifying projects. Wilson County economic development Nothing is written for AI data centers. County Commissioner Lauren Breeze publicly questioned whether the county has the resources to host one at all. Main Street Media WSMV | The standard state framework applies. That means 1) a lease from an industrial development board that has received delegated authority, 2) a public meeting, 3) a cost and benefit analysis and 4) the twenty year statutory ceiling. Tenn. Code Ann. § 7-53-305 | Active. Wilson County still lists payment in lieu of tax abatement among the incentives it offers, with no sunset or suspension published. Wilson County economic development |
| Proposed six month data center moratorium | Not an incentive. On June 22, 2026 the Wilson County Planning and Zoning Committee approved a six month moratorium. It rejected a separate zoning code change that would have heavily restricted these projects. The resolution also creates a study committee drawn from the planning commission, the board of zoning appeals, the planning and zoning committee and one resident. Main Street Media WSMV | The full Wilson County Commission was set to vote on July 20, 2026. That date falls after this file was verified. Nothing was in force as of August 2, 2026. WSMV The county zoning director said a developer could skip the use on appeal by doing a light industrial planned unit development under the county zoning ordinance. Main Street Media News Channel 5 | No longer just a proposal. The full county commission adopted it unanimously on July 20, 2026. It is in force now and runs six months, to January 20, 2027. Main Street Media |
Texas gives a certified AI data center a 10, 15, or 20 year exemption from state sales tax on its equipment and its electricity, and cities and counties layer negotiated property tax abatements and cash grants on top. Tex. Tax Code § 151.359 Texas Comptroller The exemption is still running and the Comptroller was still certifying new facilities through the end of June 2026. Comptroller certified data center lists What changed in 2026 is everything around it. The governor, the Senate Finance Committee, and a growing list of city and county governments all moved against AI data centers during the first half of the year. Holland and Knight Texas Tribune
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Qualifying data center sales tax exemption | The exemption covers 1) servers, 2) cooling equipment, 3) generators, 4) electrical systems, 5) racks, 6) software, 7) electricity, and 8) anything else necessary and essential to the facility. It wipes out the 6.25 percent state sales and use tax on those purchases. Texas Comptroller data center exemption Local sales tax still applies at this tier. Texas Comptroller on local sales tax Comptroller FAQ The clock starts on the date the Comptroller certifies the facility. It runs 10 years if capital investment lands at 200 million dollars or more but under 250 million dollars. It runs 15 years once investment reaches 250 million dollars. Tex. Tax Code § 151.359 | The building needs at least 100,000 square feet in a single building or a portion of one. More than one qualifying data center can sit inside the same building. Each one has to separately meet every requirement. Comptroller FAQ Capital investment has to reach 200 million dollars within five years of certification. Only Section 179, Section 1245, and Section 1250 property counts. The count excludes 1) operating leases, 2) routine maintenance, 3) related party purchases, and 4) anything bought before September 1, 2013. Comptroller FAQ Texas Comptroller You also need at least 20 qualifying jobs. Each one has to 1) pay at least 120 percent of the county average weekly wage, 2) provide at least 1,820 hours a year, and 3) stay filled continually for five years. Any vacancy has to be refilled inside 120 days. Comptroller FAQ Texas Tribune Only one occupant per certified facility. Certification runs on Form AP-233. Purchases go through exemption certificate Form 01-929. Texas Comptroller A facility that held a former Chapter 313 appraised value limitation cannot qualify at all. The Comptroller audits at the five year anniversary. Every registration number is revoked if the tests are missed. Tax, penalty, and interest come due back to the original purchase date. Comptroller FAQ Texas Comptroller | Active as of July 2026. New certifications are still being issued. Comptroller certified data center lists An interim legislative review is under way. It could bring repeal or new limits in the 2027 session, which is the next regular session. Holland and Knight Holland and Knight on the Abbott directive |
| Qualifying large data center project sales tax exemption | A qualifying large data center project drops both the 6.25 percent state sales tax and all local sales and use taxes. The exemption covers the same equipment, electricity, and other necessary and essential items. Local rates can add another 2 percent. Tex. Tax Code § 151.3595 Texas Comptroller Texas Comptroller local sales tax Comptroller FAQ The exemption lasts 20 years from certification. Tex. Tax Code § 151.3595 | At least 250,000 square feet across one or more buildings on a single parcel or on commonly owned contiguous parcels. Capital investment of at least 500 million dollars over five years. At least 40 qualifying jobs in the county at 120 percent of the county average weekly wage. A contract for at least 20 megawatts of transmission capacity. A single qualifying occupant. Tex. Tax Code § 151.3595 Texas Tribune Certification runs on Form AP-236. The five year audit and the full clawback work the same way they do at the base tier. Comptroller FAQ Texas Comptroller | Active as of July 2026. The Comptroller kept registering new large projects straight through the first half of the year. Those include 1) Project Landman on June 18, 2026, 2) Milam County Data Center Phase 2 on June 10, 2026, and 3) Project Lightning on June 4, 2026. Comptroller certified data center lists |
| Electricity and natural gas sales tax exemption for certified data centers | A certified AI data center buys its electricity free of the 6.25 percent state sales tax when the power is necessary and essential to processing, storing, and distributing data. Texas Comptroller A qualifying large data center project saves the local sales tax on utilities as well. Texas Comptroller Comptroller FAQ The exemption itself sits in Tex. Tax Code § 151.317. That section names a facility certified under § 151.359 or § 151.3595 as one of the exempt uses of gas and electricity. | The facility has to be certified under § 151.359 or § 151.3595 first. Texas Comptroller A predominant use study is required if the AI data center sits inside a larger facility that does other things. The same goes if it shares a facility with another inhabitant. No study is needed when the meter is separate. A standalone facility whose qualifying occupant is the sole inhabitant needs no study. It simply hands the utility a completed Form 01-929. Exempt use has to exceed 50 percent of total use. Power for administrative offices, storage areas, break rooms, and restrooms does not qualify. Neither does the heating and cooling for those areas. A facility carrying a former Chapter 313 value limitation cannot claim it. Comptroller FAQ Texas Comptroller | Active. Texas Comptroller |
| Chapter 312 local property tax abatements | Texas has no statewide property tax and no automatic property tax break for AI data centers. Chapter 312 lets cities, counties, and special districts exempt up to 100 percent of the new value a project adds, for up to 10 years. Tex. Tax Code ch. 312 Texas Comptroller Chapter 312 program Texas Comptroller property tax programs The Comptroller publishes a searchable database of Chapter 312 agreements, though its search tool currently returns a loading error. Comptroller Chapter 312 abatement database School districts cannot abate. That means school maintenance and operations taxes stay fully payable. Those taxes are the largest slice of a Texas property tax bill. Texas Public Policy Foundation Texas Comptroller Chapter 312 program | The site has to sit in a designated reinvestment zone. A city ordinance or county order creates that zone. It takes a public hearing with seven days published notice. Tex. Tax Code ch. 312 The taxing unit first passes a resolution electing to participate. It also adopts abatement guidelines and renews them every two years. The owner signs a written abatement agreement and applies to the appraisal district. Recapture follows if the investment or job targets slip. Tex. Tax Code ch. 312 Texas Comptroller Chapter 312 program Every taxing unit reports each new, modified, and canceled abatement to the Comptroller. The Comptroller publishes them in a searchable public database. Comptroller Chapter 312 abatement database | Active. The chapter expires September 1, 2029 under Tex. Tax Code § 312.006. That expiration holds unless the Legislature continues it. The date was set when HB 3143 renewed the program in 2019. Texas Public Policy Foundation |
| Chapter 380 and 381 economic development grants | Cities under Chapter 380 and counties under Chapter 381 may pay cash grants. In practice those grants rebate a share of the property taxes an AI data center pays each year. Texas Comptroller Chapter 380 and 381 database These grants can run far past the 10 year Chapter 312 ceiling. They can also be stacked with a Chapter 312 abatement on the same project. That is exactly what El Paso and El Paso County did for Meta. City of El Paso | A negotiated agreement with the city or the county. Any agreement entered, amended, or renewed after January 1, 2022 has to be reported to the Comptroller public database within 14 days. Failing to report carries a penalty of up to 1,000 dollars. Texas Comptroller Chapter 380 and 381 database | Active. Texas Comptroller Chapter 380 and 381 database |
| Research and development franchise tax credit | Nothing here is AI data center specific, though it remains the closest thing Texas offers on the income side. The state has no corporate income tax and no franchise tax break aimed at AI data centers. The credit equals 8.722 percent of qualified research expenses above a base amount. The rate rises to 10.903 percent for research contracted with a Texas public or private university. EY Tax News on SB 2206 PwC The credit is 1) capped at 50 percent of franchise tax due, 2) carried forward 20 years, and 3) refundable for some entities that owe no franchise tax. Reed Smith An AI operator running model training or systems research in Texas can claim it if the work meets the federal definition of qualified research. PwC | Qualified research expenses are the Texas portion of the amount reported on federal Form 6765. EY Tax News on SB 2206 The credit is effective for franchise tax reports originally due on or after January 1, 2026. SB 2206 also repealed the old research and development sales tax exemption under § 151.3182 as of the same date. A taxpayer cannot keep both. Reed Smith | Enacted in 2025 and effective January 1, 2026. EY Tax News on SB 2206 |
| SB 6 large load interconnection and ratepayer protection law | Listed for the cost side of the Texas picture rather than as anything an operator gains. It belongs in the model next to any tax saving. SB 6 covers AI data centers and other loads of 75 megawatts or more in ERCOT. Those loads have to 1) contribute to interconnection costs, 2) accept curtailment during firm load shed events if they connected after December 31, 2025, 3) disclose duplicate interconnection requests, and 4) follow new rules for colocating with existing generators. Baker Botts | The bill was signed June 20, 2025 and took effect immediately. Baker Botts The PUCT proposed rule 16 Tex. Admin. Code § 25.194 on March 12, 2026 under Project No. 58481. PUCT proposal for publication of 16 TAC § 25.194 DLA Piper The proposal would charge a nonrefundable interconnection fee of 50,000 dollars per megawatt. It would also require financial security of 50,000 dollars per megawatt before an interconnection study. Most of that security is forfeited if the project shrinks or walks away. The proposal would require early site control documentation too. Greenberg Traurig On June 18, 2026 the PUCT approved the ERCOT Batch Zero process. Batch Zero replaces one at a time review with coordinated batch studies for loads of 75 megawatts or more. ERCOT expected to give Batch Zero applicants their classifications by August 2026. PUCT approval of ERCOT Batch Zero | The statute is in effect. The Batch Zero process was approved on June 18, 2026. PUCT approval of ERCOT Batch Zero Rule 25.194 itself was still pending as of August 2, 2026. It remained at the proposal stage on the PUCT docket. The commission July 9, 2026 open meeting took up Batch Zero implementation rather than adoption of the rule. PUCT proposal for publication of 16 TAC § 25.194 PUCT July 9, 2026 open meeting summary PUCT open meeting calendar Treat the fee and security figures as proposed numbers that can still move at adoption. |
| Governor's June 2026 directive on data center infrastructure costs | Also not an incentive. It is the clearest signal that the Texas incentive stack is about to be reworked. Abbott directed the PUC to 1) make AI data center interconnections result in reduced residential electric bills, 2) require AI data centers to pay all of their own electric infrastructure costs, and 3) have the PUC and ERCOT review their existing authorities for further ratepayer protections. Governor's office Abbott directive letter of June 10, 2026 | The PUC and ERCOT owed the governor a joint memorandum by July 17, 2026. Abbott directive letter of June 10, 2026 Abbott also listed proposals he intends to carry to the Legislature. They cover 1) tax incentives, 2) infrastructure cost allocation, 3) water use, and 4) community impact measures. Holland and Knight The next regular legislative session opens in January 2027. None of it can be enacted before then. Holland and Knight on the Abbott directive | Directive issued June 10, 2026. Governor's office The Senate Finance Committee set a public hearing for July 27, 2026 on the interim charge titled Data Center Investment and State Fiscal Effects. Holland and Knight |
County and local programs
Archer County
Archer County wrote Chapter 312 guidelines in November 2025 that name data centers and crypto mining directly, then unanimously denied the first AI data center abatement request to reach it in June 2026. Archer County guidelines and criteria NewsChannel 6
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Archer County Chapter 312 guidelines and the denied Dynamo Ventures abatement | There is no abatement here to take. On June 22, 2026 Archer County commissioners voted unanimously against a proposed abatement for an AI data center by Dynamo Ventures LLC. More than 30 residents had packed the Commissioners Court to oppose it. NewsChannel 6 The denial does not stop the project. County officials told residents to take their objections to state lawmakers. NewsChannel 6 The project is known locally as Project Raptor. It is expected to be infrastructure for Google. Archer County Project Raptor FAQ NewsChannel 6 | The Commissioners Court adopted its guidelines on November 24, 2025. They describe data centers and crypto mining facilities in their own terms. That description covers power supplies, cooling systems, generators, security systems, and the physical infrastructure that keeps hardware running. They allow abatement of 1) new or expanded buildings, 2) fixed machinery and equipment, 3) site improvements, and 4) other property Chapter 312 permits. Archer County guidelines and criteria An application triggers a public hearing noticed at least 30 days ahead. Real property may be abated only to the extent its value exceeds the value in the year the agreement was executed. Archer County guidelines and criteria The practical lesson here is the one an Archer official gave out loud. The abatement negotiation is the only real leverage a Texas county has. A county cannot zone the project away. Archer County News | No abatement is in place. The Commissioners Court voted unanimously on June 22, 2026 to deny the Dynamo Ventures request. That request was filed on June 3, 2026 for a site of about 2,800 acres along Three Way Road. No Archer County abatement is running for this project. Archer County News |
Armstrong County
Armstrong County adopted Chapter 312 guidelines in August 2024 and abated for a Crusoe AI data center complex south of Claude, then amended the deal in October 2025 into a flat payment per building. Armstrong County guidelines and criteria NewsChannel 10
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Armstrong County Chapter 312 abatement for the Crusoe campus south of Claude | Commissioners abated for a 3.5 million square foot Crusoe Energy AI data center complex. They then approved an amendment on October 14, 2025. The amendment pays the county 1.35 million dollars per building per year in lieu of taxes once each building goes operational. NewsChannel 10 The original structure would have paid 5.4 million dollars a year for 10 years as each phase finished. Both phases running would have reached 10.8 million dollars a year. The project shrank from seven planned buildings on 350 acres to as few as three or four. NewsChannel 10 Four buildings were under construction off Lima Road east of Highway 207 as of November 2025. Google named an Armstrong County campus as part of its 40 billion dollar Texas commitment. Amarillo Globe-News | The county adopted its resolution electing to participate in abatement and its guidelines and criteria on August 26, 2024. Those guidelines say plainly that the court means to promote economic development. It will not do so at the expense of the county natural resources or the services it provides the public. Armstrong County guidelines and criteria Tangible personal property already on the site before the agreement period is not eligible. Inventory, supplies, and rolling stock are excluded too. Armstrong County guidelines and criteria Real property may be abated only to the extent value in a given year exceeds its value in the year the agreement was executed. Tex. Tax Code ch. 312 | Active. County officials expected the first payment in lieu of taxes as early as June or July 2026, once the first building goes operational. Crusoe projected four buildings finished within two years of October 2025. NewsChannel 10 |
Bell County
Temple hosts a Meta campus and a Rowan Digital campus. Bell County granted the abatements, at 75 percent for Meta and 50 percent for Rowan, and residents pushed the county toward new safeguards in 2026. Temple Daily Telegram Bell County public notice
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Bell County Chapter 312 abatement for Polmer LLC, the Meta entity | A 10 year, 75 percent property tax abatement approved in 2021 with Polmer LLC. Polmer is the local entity for Meta. The deal covers a roughly 800 million dollar AI data center on a 399.2 acre site at Temple Industrial Park. Temple Daily Telegram dgtl infra The agreement abates a percentage of the increase in taxable value of certain real and personal property. Bell County public notice | A designated reinvestment zone, a negotiated abatement agreement with investment commitments, and annual compliance filings. Tex. Tax Code ch. 312 Bell County public notice | Active. Commissioners declined to scrap data center abatements when residents asked them to in July 2026. The county is instead rewriting the policy that governs future deals. Workshops are set for July 27, August 3, and August 17, 2026. A public hearing is set to adopt an amended policy by September 8, 2026. KWTX |
| City of Temple and Bell County abatements for the Rowan Digital campus | The Temple City Council designated a tax abatement zone on October 2, 2025. It approved a 10 year abatement for the proposed Rowan AI data center the same day. Reporting put the package at close to 16 million dollars in incentives. Temple City Council minutes October 2 2025 Austin Business Journal Bell County followed with a 50 percent abatement lasting 10 years. The reporting does not date the Commissioners Court vote or say which classes of property it covers. Temple Daily Telegram Rowan Digital broke ground in 2026 on a roughly 700 million dollar campus on Bob White Road in South Temple. Temple Daily Telegram | Each project needs a designated reinvestment zone, a negotiated abatement agreement with investment commitments, and annual compliance filings. Tex. Tax Code ch. 312 | Active. Rowan announced on January 5, 2026 that construction was under way at the 300 megawatt Temple site. Operations are expected in 2027. Rowan Digital Infrastructure |
Bexar County
San Antonio is one of the oldest Texas AI data center clusters, anchored by Microsoft. San Antonio Current Bexar County runs a formal abatement policy with investment, wage, hiring, and aquifer conditions. Its current guidelines also list data centers as a project type that cannot get an abatement at all. Bexar County tax abatements
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Bexar County tax abatement policy | The baseline offer is up to 40 percent of real or personal property taxes. A project has to bring at least 25 million dollars of combined real and personal property investment. It also has to bring 50 new full-time jobs to be considered. Bexar County tax abatements Terms run 6 years or 10 years depending on where the project sits. The 10 year term is reserved for projects 1) south of U.S. Highway 90, 2) inside Loop 410, 3) south of I-35, or 4) in the South Texas Medical Center, airport, or Texas Research Park areas. Bexar County tax abatements The San Antonio City Council gave Microsoft a 10 year property tax abatement in 2007 for its Westover Hills data center. Microsoft committed to create 75 full-time jobs in exchange. San Antonio Current The Comptroller separately registered Microsoft Corporation facilities in San Antonio as qualifying large data center projects. One is Microsoft Corporation (SAT 89-90), effective April 4, 2024. That registration is the state sales tax exemption. It runs on its own track apart from any county property tax break. Comptroller certified data center lists | Every new and existing employee at the project location must earn at least the county living wage for the full abatement term. The county currently sets that wage at 20.18 dollars an hour. Within one year 70 percent must reach a higher threshold of 21.34 dollars an hour. Bexar County tax abatements At least 50 percent of new hires must be Bexar County residents. The company must 1) offer affordable health insurance, 2) take part in an SA Works experiential learning program, and 3) pay a nonrefundable application fee of 1,000 dollars. The fee drops to 500 dollars if the company already operates in the county. Personal property acquired before the Commissioners Court executes the agreement is not abatable. Abated taxes are recaptured on a sliding scale if the agreement terminates. The rate is 100 percent during the abatement period and steps down through the recapture years. Bexar County tax abatements Location is a hard stop of its own. Projects sitting in whole or in part over the Edwards Aquifer Recharge Zone are not eligible at all. The county also excludes projects that may have a potentially negative impact on military missions. It does not abate flood control taxes or University Health System taxes. Bexar County tax abatements Bexar County official statement The county page also names a list of project types that are categorically ineligible. Data centers are on that list, no matter how much a project invests or how many jobs it creates. So an AI data center cannot take a Bexar County tax abatement at all under the current guidelines. Bexar County tax abatements Bexar County 2025-2026 tax abatement guidelines | Active. The county is running the program under the document it posts as the current version, the 2025-2026 Tax Abatement Guidelines. That means the guidelines on the books now carry a 2026 end to their cycle. Bexar County 2025-2026 tax abatement guidelines |
Caldwell County
Caldwell County approved a Chapter 312 abatement for a turnkey AI data center using payments in lieu of taxes, while flagging that several multibillion dollar projects would force the county to cut its tax rate. Caldwell County
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Caldwell County Chapter 312 abatement with EDC Austin LLC | Commissioners approved a Chapter 312 tax abatement agreement with EDC Austin LLC for the planned construction of a turnkey AI data center. The agreement lets the property owner make payments in lieu of taxes to the county during the abatement years. Caldwell County | A negotiated Chapter 312 agreement. Tex. Tax Code ch. 312 The county tabled the companion development agreement at the same meeting. Officials noted that Caldwell County carries around 9 billion dollars of value on the tax roll. Several multibillion dollar campuses would push the county to cut its rate. Caldwell County The Comptroller registered EDC Austin LLC as a qualifying large data center project effective January 9, 2026. Comptroller certified data center lists | Approved by the Commissioners Court on March 26, 2026 and in effect now. The project it covers is estimated at 7.3 billion dollars. Chapter 312 caps the abatement at 10 years. Caldwell County |
Carson County
The Fermi America campus outside Amarillo sits in Carson County, which approved a 10 year abatement and reinvestment zone in October 2025 using per square foot and per megawatt rates rather than a percentage. NewsChannel 10 Fermi America release
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Carson County abatement and reinvestment zone for Fermi America | Carson County approved a 10 year tax abatement and a reinvestment zone for the Fermi America campus. Local reporting puts the abatement for the AI data centers at 3 dollars per square foot. The generation side runs 2,500 to 2,750 dollars per megawatt. That structure is closer to a fixed payment than a percentage abatement. NewsChannel 10 Fermi announced the package jointly with the City of Amarillo, alongside a water agreement for the first gigawatt. Fermi America release | A negotiated agreement tied to a designated reinvestment zone. Tex. Tax Code ch. 312 Fermi describes the project as a private power and AI campus on roughly 7,570 acres in the Texas Panhandle. Fermi America vision page Fermi America release The Comptroller registered Fermi Data Center 1 as a qualifying large data center project effective September 5, 2025. Comptroller certified data center lists | Active since late October 2025. The agreement covers 15 phases. Each phase starts its own 10 year abatement when it is finished. The county judge said the whole arrangement could run as long as 25 years. NewsChannel 10 |
El Paso County
The Meta hyperscale campus here carries stacked city and county tax breaks. City of El Paso A move to cancel the city agreement failed on a 5 to 3 council vote on June 9, 2026, so the deal stands. El Paso Times
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| City of El Paso Chapter 380 agreement for the Meta AI data center | An 80 percent rebate of city real property taxes for up to 35 years. It covers the roughly 10 billion dollar Meta campus in Northeast El Paso. The campus is built through the entity Wurldwide LLC. City of El Paso El Paso City Council File No. 23-1572 City and county incentives together are worth about 110 million dollars for Phase 1 and up to 550 million dollars across all phases. City of El Paso El Paso Matters | Meta has to build and operate the project on the terms of the negotiated agreement. City of El Paso A Chapter 312 abatement binds only the taxing unit that grants it, so school district taxes are not reduced by a city or county agreement. Tex. Tax Code ch. 312 Whether the community college and hospital districts granted their own abatements here is not stated on the city page. | Active. The City Council voted 5 to 3 on June 9, 2026 against a proposal that would have ended the agreement. The rebate stays in place. El Paso Times KFOX 14 City officials had already told council on April 13, 2026 that the agreements are enforceable. Those agreements carry performance requirements on private investment, job creation, and construction timelines. Termination is available only for cause. KFOX 14 on the April 2026 project update |
| El Paso County Chapter 312 abatement for the Meta AI data center | A county property tax abatement running up to 10 years per project phase, stacking on top of the city Chapter 380 rebate. Neither the city page nor the reporting gives the county abatement percentage, which would sit in the county Chapter 312 agreement. City of El Paso El Paso Matters | The site sits in a county reinvestment zone. The company has to meet the investment commitments in the abatement agreement. Annual filings and recapture exposure come with it. Tex. Tax Code ch. 312 | Active. The city says Phase 1 of the campus is already under way. It explains that an abatement per phase is capped at 10 years inside the 15 year phase window. That cap is where the 10 year county number comes from. City of El Paso data centers page |
Ellis County
The Red Oak and Midlothian corridor south of Dallas hosts Compass, Google, AREP, and DataBank campuses. Baxtel The county has granted repeat abatements, and a very large new request was still pending in June 2026. Midlothian Mirror Ellis County KERA News
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Ellis County Chapter 312 abatements for Red Oak data centers | The Commissioners Court has repeatedly awarded property tax abatements for hyperscale projects. One went to the Compass Datacenters Red Oak campus Phase 2, in partnership with the City of Red Oak. A later one went to an AREP AI data center on a 43.75 acre site in Red Oak. Ellis County Midlothian Mirror In November 2025 the court heard a pitch for a 900 acre Weston Holiday campus seeking a 75 percent abatement on improvements. It took no action at that meeting. Ellis County Commissioners Court November 25 2025 | Each abatement is a negotiated agreement covering new improvements in a reinvestment zone. Investment commitments are set deal by deal. Tex. Tax Code ch. 312 One term worth knowing is the county's own cap. The county assistant attorney told commissioners Ellis County caps itself at seven years. The City of Red Oak went to 10 on the same AREP project. Midlothian Mirror | Active. Abatements are still being negotiated here. The county had an abatement on the table for a Compass Datacenters campus of about 890 acres. It pulled the item before the June 23, 2026 Commissioners Court meeting because of the public reaction. It did not vote the abatement down. KERA News |
| City of Midlothian and City of Red Oak abatements | Ellis County approved a 10 year tax abatement agreement in July 2018 for the first Google AI data center in Texas. Google had bought the land in the Railport Business Park in Midlothian in May 2017 under the entity Sharka LLC. The City of Midlothian approved abatements of its own for the same project. Baxtel NBC 5 Dallas Fort Worth The facility opened in 2019 and has expanded several times. Google later announced a 40 billion dollar Texas commitment that includes this area. Governor's office The Red Oak city council separately voted 4 to 1 to approve a tax abatement for an 800 acre AI data center project despite resident opposition. FOX 4 | Negotiated city and county abatement agreements. Tex. Tax Code ch. 312 The reporting I read gives the 10 year county term and the roughly 40 jobs Google committed to. It does not give the abatement percentage. Neither Midlothian nor Google has published the agreement percentages. Baxtel NBC 5 Dallas Fort Worth | Live in Red Oak. The city council approved the newest campus on a 4 to 1 vote in May 2026. That makes it the sixth AI data center campus in the city. CBS News Texas I could not verify from a primary source whether the 2018 Ellis County and Midlothian abatements for Google are still running. |
Guadalupe County
Commissioners rejected a CloudBurst abatement in February 2026 and then approved it in April 2026, both times on 3 to 2 votes. Community Impact Seguin Today It is the clearest example in Texas of a county reversing itself on an AI data center deal.
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Guadalupe County Chapter 312 abatement and development agreement with CloudBurst Texas | On April 21, 2026 the Commissioners Court approved an estimated 500 million dollar Chapter 312 property tax abatement. It came with a 10 year development agreement. The CloudBurst Texas campus is reported at 14.5 billion dollars and about 1.2 gigawatts. It sits on roughly 220 acres spanning Guadalupe and Hays counties. Seguin Today The Real Deal Data Center Dynamics On February 24, 2026 the same court had voted the abatement down 3 to 2. Water use was the stated objection. Community Impact | A negotiated Chapter 312 agreement in a reinvestment zone. A separate development agreement carries the water and community terms. Seguin Today Tex. Tax Code ch. 312 | Active, on a 3 to 2 vote. Each building gets a 10 year abatement that steps down over its term. It starts at 90 percent of county taxes in years 1 through 5. From there it runs 80 percent in year 6, 70 percent in year 7, 60 percent in year 8, 50 percent in year 9, and 40 percent in year 10. Navarro ISD was carved out, so the school district keeps collecting the whole time. New Braunfels Herald-Zeitung |
Harris County
The City of Houston has approved Chapter 312 abatements for several data center industry projects, but its published rules exclude land and exclude onsite generation that is not entirely consumed by the development. City of Houston tax abatements
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| City of Houston Chapter 312 abatements for data centers | The Houston published list of executed abatements includes 1) a CyrusOne abatement under Ordinance 2013-403 dated May 14, 2013, 2) an Integra Mission Critical LLC abatement under Ordinance 2024-978 dated December 11, 2024, and 3) abatements for TPMS DA 3 LLC and TPMS DA 4 LLC under Ordinance 2024-943 dated December 4, 2024. City of Houston tax abatements | Standard Chapter 312 mechanics apply. Tex. Tax Code ch. 312 Houston additionally excludes land, inventory, supplies, tools, and vehicles from abatement. It also excludes improvements that generate electrical energy not entirely consumed by the new development. That matters a lot for an AI data center planning to export power from onsite generation. City of Houston tax abatements | Active. Harris County is operating under tax abatement guidelines and criteria that cover 2026 through 2028. The county program is open right now. It lapses at the end of that cycle unless commissioners readopt it. Harris County tax abatement program Harris County 2026-2028 tax abatement guidelines I could not find a published expiration date for the separate City of Houston guidelines. |
Hays County
No AI data center abatement here. Hays County is where the Texas backlash went furthest. San Marcos became the first Texas city to ban data centers outright on June 16, 2026. Texas Tribune
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| San Marcos zoning ban on data centers | This is a restriction, not an incentive. The San Marcos City Council voted 4 to 3 on June 16, 2026 to define data centers in its zoning code. The same vote made them ineligible in every part of the city. It is the first such ban by a Texas city. Texas Tribune In February 2026 the same council had already blocked a proposed 1.5 billion dollar, 200 acre project on water supply grounds. KUT The Real Deal | The ban runs through municipal zoning authority. Texas cities have that authority and Texas counties largely do not. Texas Tribune At the county level, Hays County commissioners voted unanimously on June 23, 2026 for a water protection review period. It suspends discretionary approvals of significant water use developments through December 31, 2026. It also creates a review board. That board weighs water availability studies, drought contingency plans, and conservation measures before commissioners act. KUT KXAN Austin American-Statesman The county judge described it as a temporary review period rather than a blanket prohibition. KUT | The city ban is live now. It passed 4 to 3 on the second reading of Ordinance 2026-08. That ordinance amended the San Marcos land use matrix to prohibit the use in every zoning district. The reporting I read gives it no sunset date. CBS Austin |
Hill County
Hill County passed what appears to be the first Texas county AI data center moratorium in May 2026 and rescinded it three weeks later after a developer sued for 100 million dollars. It now runs a review checklist instead. Texas Tribune KWTX
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Hill County data center review requirements, replacing the rescinded moratorium | This is a cost, not an incentive. It is a useful warning about the limits of county authority. On May 12, 2026 the Commissioners Court voted 3 to 2 for a pause of up to one year on new large battery storage, power generation, and AI data center projects in unincorporated Hill County. KWTX Developer RCM Hill LLC sued the county, the county judge, and two commissioners in federal court in Waco. The suit sought 100 million dollars and called the moratorium illegal. Texas Tribune On June 4, 2026 the court voted unanimously to rescind it. It adopted a checklist of requirements for developers in its place. KERA News | Developers now work through the new county approval checklist rather than a blanket prohibition. KERA News Hill County also hosts the Nexus Data Centers campus at Hubbard. The Comptroller registered it as a qualifying large data center project in July 2025. Anthropic is the qualifying occupant. Comptroller certified data center lists | The moratorium is gone. The review checklist is what applies now. RCM Hill filed a stipulation of dismissal with prejudice on July 9, 2026 that ended the federal case. Hill County agreed to pay 100,000 dollars in legal fees to close it out. KWTX |
Milam County
Rockdale sits in Milam County, which lost its Alcoa aluminum plant in 2008. Texas Tribune The county gave Riot a 75 percent abatement for 10 years structured as payments in lieu of taxes. KXXV
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Milam County Chapter 312 abatement for Riot Rockdale | Commissioners approved a 75 percent abatement for 10 years for the Riot Rockdale AI data center. The company pays 25 percent of its property taxes. Payments begin in 2028 and are structured as a payment in lieu of taxes. The vote was near unanimous. The Precinct 4 commissioner was the lone objector on the size of the break. KXXV | A negotiated Chapter 312 agreement with a reinvestment zone. Tex. Tax Code ch. 312 The Comptroller separately registered Milam County Data Center and Milam County Data Center Phase 2 as qualifying large data center projects. The second one is effective June 10, 2026. Comptroller certified data center lists | Active and signed, but nothing has been abated yet. The payment in lieu of taxes does not start until 2028. It then runs the 10 year term. KXXV |
Navarro County
Corsicana hosts a large Riot campus, supported by a county Chapter 312 abatement adopted alongside a purpose built reinvestment zone. Navarro County Commissioners Court minutes
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Navarro County Chapter 312 abatement for Riot Corsicana LLC | On October 15, 2024 the Commissioners Court adopted an order creating Enterprise Zone and Reinvestment Zone 24-102 for commercial and industrial tax abatement. It approved a tax abatement agreement with Riot Corsicana LLC the same day. Navarro County Commissioners Court minutes | The county had already adopted a tax abatement policy and a resolution electing to participate in abatement. It gave written notice to the other taxing units. Chapter 312 requires all of that. Navarro County Commissioners Court minutes Tex. Tax Code ch. 312 The Comptroller separately registered Riot Corsicana Data Center as a qualifying large data center project effective August 22, 2023. It then added Riot Corsicana Data Center I effective December 12, 2025. It added Riot Corsicana Data Center 02 effective May 21, 2026. Comptroller certified data center lists | Active. The Commissioners Court approved the abatement on a 3 to 2 vote in October 2024. The county describes an abatement as reducing taxes on new construction for a ten year term. That puts it into the middle 2030s. Corsicana Daily Sun |
Nolan County
Sweetwater landed a roughly 7 billion dollar Crusoe project in April 2026 on a 10 year county abatement paired with fixed annual payments and water conditions. KTXS
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Nolan County Chapter 312 abatement for the Crusoe Sweetwater campus | County commissioners approved a 10 year tax abatement in April 2026 for a roughly 7 billion dollar, 200 megawatt Crusoe Energy Systems project. KTXS Local reporting describes an agreement worth more than 54 million dollars in return to the county. That includes about 3 million dollars in annual tax payments. It also includes about 2.2 million dollars a year in charitable contributions for 10 years. Sweetwater Reporter KTXS | A negotiated Chapter 312 agreement with a reinvestment zone, investment commitments, and water restrictions. Tex. Tax Code ch. 312 Roughly 2,000 construction workers are expected during the build phase. KTXS Sweetwater Reporter | Active. Nolan County commissioners approved the 10 year abatement in April 2026 and the project moved ahead from there. That puts the abatement into the middle 2030s. News 4 San Antonio |
Tarrant County
No active AI data center abatement. Fort Worth stalled the Edged deal in March 2026 and by July 2026 was preparing to start the legal process for a moratorium on new applications. City of Fort Worth Fort Worth Report
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Fort Worth data center policy and proposed moratorium | This is the cost side. On March 31, 2026 the City Council voted unanimously to delay a decision on a 10 year, 50 percent tax break for EDC Fort Worth LLC. That is the Edged related entity behind a roughly 1 billion dollar project. The delay followed heavy resident opposition. Fort Worth Report The city then opened a policy and zoning process. On July 8, 2026 the Zoning Commission voted to recommend denial of the current draft. It asked for stronger regulations at the same time. City of Fort Worth | City staff were set to bring revised recommendations to an August 4, 2026 work session. An ordinance was set for August 11, 2026 to begin the state law process for a moratorium on new AI data center development applications. Final council action on the moratorium itself is not expected until December 2026. City of Fort Worth The Comptroller has separately registered EDC Fort Worth LLC as a qualifying large data center project effective January 9, 2026. That registration is the state sales tax exemption. It is independent of any city property tax break. Comptroller certified data center lists | No moratorium is in effect. The Zoning Commission voted 7 to 4 on July 8, 2026 to recommend denial. That sent the draft ordinance back to the City Council. Five council members said they would propose a moratorium at the August 11, 2026 meeting. State law caps that tool at 90 days plus one 90 day extension. KERA News |
Taylor County
Abilene is the site of the Lancium Clean Campus, the Oracle anchored campus that Crusoe built and that is widely reported as the first Stargate site. Business Insider on the Abilene Stargate site Both the City of Abilene and Taylor County abated for the project in December 2021, and the recorded city break is 85 percent for 10 years. Abilene Reporter-News Comptroller Chapter 312 record
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| City of Abilene Chapter 312 abatement for Lancium Abilene LLC | The Comptroller Chapter 312 database records an active abatement of 85 percent of value in each of years 1 through 10, across ten property accounts. Abilene City is the lead taxing unit and Lancium Abilene LLC is the property owner. The recorded reinvestment zone is City of Abilene Reinvestment Zone No. RZ21-1. The agreement was executed December 21, 2021. The record shows an abatement effective date of January 1, 2031 and expiration December 31, 2044. Comptroller Chapter 312 record The deferred start fits the shape of the deal. Lancium and its customers committed to invest 2.4 billion dollars over a 20 year horizon on roughly 800 acres. The campus starts at 200 megawatts with room to pass 1 gigawatt. Abilene Reporter-News I would still read the executed agreement before telling a client the break is running today. | Lancium applied to both the City of Abilene and Taylor County for abatement agreements inside Reinvestment Zone RZ21-1. The estimated cost of improvements is reported at 500 million dollars. Taylor County Resolution 22-25 The zone itself was designated by City of Abilene Ordinance 76-2021 on December 17, 2021 for a five year term. The Lancium agreements sit inside the second Reinvestment Zone RZ21-1, designated separately in February 2025. Taylor County commissioners approved their side on December 21, 2021. The company committed to 57 full-time jobs. Abilene Reporter-News The city negotiates each Chapter 312 agreement case by case. City of Abilene tax abatements Lancium is the campus landowner and developer. Crusoe built on Lancium land. That is why a separate Crusoe abatement agreement exists. Business Insider obtained that agreement through a public records request. It reports an 85 percent break conditioned on spending a minimum of 2.4 billion dollars of a 3.5 billion dollar targeted investment. The break also requires building six data center buildings of at least 100,000 square feet each. Business Insider | On the books but not yet abating. The Comptroller record puts the first abatement year at 2031 and the expiration at December 31, 2044. In the meantime the appraised value of the Lancium property is under challenge by a tenant. The Taylor County auditor estimated the county would have received about 3 million dollars in tax revenue from Lancium properties. That assumes the valuation had not been contested. Abilene Reporter-News via AOL |
Utah exempts an AI data center of 150,000 square feet or more from sales and use tax on its equipment, with no investment minimum and no job minimum, and colocation tenants inside the building share the break. Utah Code 59-12-104(84) Utah Code 59-12-102(111) A rural project can also win a post performance income tax credit from the state, and one AI data center has now done it. Governor's Office of Economic Opportunity I found no property tax break for an AI data center in Utah statute. Property tax relief comes only from negotiated local deals, like Meta's package in Eagle Mountain and the MIDA project area for the Stratos campus in Box Elder County. Salt Lake Tribune Deseret News Stratos Development Agreement
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Qualifying data center sales and use tax exemption | A full exemption from state and local sales and use tax covers 1) machinery, 2) equipment, and 3) normal operating repair or replacement parts. The item has to have an economic life of one year or more. It also has to be used in running a qualifying data center or in an occupant's operations inside one. Utah Code 59-12-104(84) Utah Code 59-12-104 section page Colocation tenants count as occupants. S.B. 114 added that in 2020. S.B. 114 (2020) State and Local Tax Insights One operator brief puts the value at roughly 7.25 percent of equipment cost. That is the combined state, county, and local rate. Aligned Data Centers Aligned insight brief on Utah tax advantages | The facility has to 1) house a group of networked server computers in one physical location in Utah, 2) be a new operation constructed on or after July 1, 2016, and 3) consist of one or more buildings totaling 150,000 or more square feet. The buildings and the land under them must be owned or leased by the operator or by a person under common ownership with the operator. Utah Code 59-12-102(111) There is no minimum investment, no job test, no wage test, no term limit, and no sunset date. EDCUtah Aligned insight brief on Utah tax advantages | Active. I read the version of the statute effective July 1, 2026. The AI data center exemption is still subsection (84). That means the 2026 general session that adjourned March 6, 2026 left it alone. Utah Code 59-12-104 One drafting quirk to watch is that the exemption list renumbers as the Legislature adds items. That same page is marked superseded on January 1, 2027. Anyone citing a subsection number should recheck it against the version in force on the date they need. The version that was in force from January 1, 2026 until July 1, 2026 carried the AI data center exemption at subsection (84) as well. Utah Code 59-12-104 effective January 1, 2026 |
| Economic Development Tax Increment Financing tax credit, with rural REDTIF variant | A post performance refundable corporate tax credit worth up to 30 percent of the new state tax revenue a project generates in an urban county. In a rural county the REDTIF variant runs up to 30 percent in most cases and up to 50 percent for very large projects. In the most rural counties it is 50 percent for all qualifying projects. Governor's Office of Economic Opportunity The statutory ceilings sit in Section 63N-2-104.3, which sets them by county class rather than by the words urban and rural. Utah Code 63N-2-104.3 An AI data center has in fact collected one. On April 9, 2026 the Governor's Office of Economic Opportunity awarded Creekstone Energy a REDTIF credit at the full 50 percent rural rate for its Millard County campus. The projected new state tax revenue behind it is about 344 million dollars over 20 years. Governor's Office of Economic Opportunity | An urban project has to 1) sit in Salt Lake, Davis, Utah, or Weber county, 2) fall inside one of five strategic targeted industries, and 3) pay its new jobs at least 110 percent of the average county wage. A rural project needs 100 percent of the average county wage. Targeted industry is preferred there but not required. Since January 1, 2024 a recipient also has to provide 20 hours of service per new high paying job per year for the duration of the incentive. Governor Cox imposed that by executive order rather than by statute. Governor's Office of Economic Opportunity The statute itself leaves the wage floors and the other benchmarks to the written agreement between the office and the company. Utah Code 63N-2-104.2 A new commercial project qualifies by involving a targeted industry, or by sitting in a third through sixth class county or a small municipality inside a second class county. Utah Code 63N-2-103 The credit pays out only after the jobs and the revenue are verified. A server hall with a small headcount collects very little. | Active. The Legislature created the EDTIF program in 2005. Governor's Office of Economic Opportunity Its operative sections are current law, with the written agreement section amended again in the 2026 general session. Utah Code 63N-2-104.2 Utah Code 63N-2-104.3 |
| Large load electric service law, S.B. 132 | This is not a tax break. It gives an AI data center load of 100 megawatts or more within five years three ways to get power. It can 1) take ordinary utility service, 2) contract with a large scale generation provider and move the power over utility transmission, or 3) build a fully off grid closed private generation system. The second route is not a free choice. Once a customer has filed a large scale service request it may not sign with a generation provider unless the utility misses its evaluation or response deadline or the two fail to agree on a contract within 90 days of the evaluation. The third route is elective, because a customer going the closed private route never files the request at all. S.B. 132 (2025) Latitude Media Both the Stratos campus in Box Elder County and the Creekstone campus in Millard County are planned as behind the meter projects that make their own power. Self supply can move faster than waiting in an interconnection queue. Box Elder County Governor's Office of Economic Opportunity | The utility has to begin processing a large scale service request by the following April 1 or October 1, finish the evaluation within 6 months of starting, and give a written service proposal within 15 business days after that. Latitude Media reports that the utility has 90 days to evaluate the request, but the statute runs that 90 day window from the day the large load customer receives the evaluation. On the supply side the large scale generation provider is the one that has to register with the Public Service Commission, serve only through qualifying generation resources, and meet all applicable North American Electric Reliability Corporation standards. The Western Electricity Coordinating Council capacity test applies only where those resources connect to a qualified electric utility's transmission system, and the commission sets the reliability standard where they do not. To the fullest extent federal law allows, the provider or the large load customer pays for interconnection and transmission studies, any identified upgrades, and the transmission service rates in the transmission provider's open access transmission tariff. Those charges keep the customer's costs from shifting onto existing ratepayers. S.B. 132 (2025) enrolled copy Latitude Media If the utility and the large load customer do not reach an agreement inside that 90 day window, the customer can go to the competitive market for power. MultiState | Active, signed at the end of March 2025. S.B. 132 (2025) Latitude Media |
| Data center water reporting law, H.B. 76 | This is not a tax break either. For an operator it is a compliance cost rather than a benefit. A large data center has to tell its water provider what it expects to use before construction. It then has to report its actual annual withdrawals to the Division of Water Rights. The division has to publish each facility's withdrawal numbers on its public website by September 1 each year. The statute says specifically not in the aggregate. Only narrower categories can be held back as protected proprietary records. Those include 1) discharge treatment plans, 2) temperature adjustment, 3) reuse plans, and 4) conservation efforts. Even those get published in aggregated anonymized form organized by county. H.B. 76 enrolled | A large data center is a facility that 1) withdraws 75 acre feet of water per year or more, 2) has buildings totaling 10,000 square feet or more, and 3) houses networked servers as its primary service. The duties attach to new large data centers that begin operations on or after July 1, 2026. The operator has to notify the water provider and report to the division at least 90 days and no more than 360 days before construction activity starts. After that it reports every year by July 1 for the prior calendar year. A land use authority has to notify the Division of Water Rights, the Division of Water Quality, and the water provider before it approves a land use application. The division can fine an operator that does not report. The penalty runs up to 100 dollars for each day of noncompliance. H.B. 76 enrolled The new duty sits in Utah Code 73-5-8.3. H.B. 76 also amended Utah Code 73-2-25 so that failing to file the report is something the state engineer can act on. H.B. 76 Data Center Water Transparency Amendments | Enacted in 2026. Governor Cox signed it on March 23, 2026. BillTrack50 bill history The enrolled bill takes effect May 6, 2026. The duties on new large data centers run from July 1, 2026. H.B. 76 enrolled The Legislative Water Development Commission recommended the bill. It cleared a House third reading on January 28, 2026. Senate action and House concurrence came on March 5, 2026. Breathe Utah bill tracker |
| Executive Order 2026-03, Establishing a Higher Bar for Data Center Development | Not a tax break and not a moratorium. It sets up a Data Center Framework of eight principles that every state executive agency has to follow in AI data center matters. That includes the State Tax Commission. The first four principles are 1) protecting the Great Salt Lake and other water by not increasing water consumption, 2) protecting air quality and non attainment areas, 3) promoting rural jobs, and 4) mitigating wildlife impacts. The other four are 5) protecting utility ratepayers, 6) expanding generation and transmission in line with the rest of the framework, 7) leading on pro human AI, and 8) providing meaningful public comment. Executive Order 2026-03 Unlike Ohio in the same week, Utah did not pause or suspend any AI data center tax break. Headlines that pair the two states should be read carefully. MultiState | It binds state executive branch agencies. It does not reach higher education, the education boards, independent entities, the Attorney General, the State Auditor, the State Treasurer, the Legislature, or the courts. It borrows the large data center definition from Utah Code 73-5-8.3(1)(d). The 75 acre feet and 10,000 square foot thresholds carry over. Agencies have to coordinate with the Utah Inland Port Authority, MIDA, and local governments. They also have to work with the Legislature on new interim study items. Executive Order 2026-03 | In effect from May 29, 2026 until it is modified, amended, rescinded, or superseded. Executive Order 2026-03 |
County and local programs
Box Elder County
County commissioners consented in May 2026 to a state MIDA project area for the Stratos AI data center and gas generation campus. Box Elder County Box Elder County fact sheet The project has since been cut roughly in half and is being fought both in court and at the ballot box. Utah News Dispatch Salt Lake Tribune
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Stratos Project MIDA project area | The state Military Installation Development Authority created a project area in western Box Elder County for the Stratos AI data center and natural gas campus. Kevin O'Leary backs the project. It originally covered about 40,000 acres of private land plus about 1,200 acres of military and state land. Stratos Project Area Plan MIDA rather than the county becomes the land use authority inside the area. Project area tax tools fund onsite infrastructure. MIDA Fox 13 The property tax terms are in the development agreement. A compute complex gets a letter of completion instead of a certificate of occupancy. In place of ordinary property tax it makes an annual in lieu payment of 1.2 percent of the taxable value of its real and personal property. Every dollar of that payment on personal property is refunded to the taxpayer within 30 days. In practice that is a full break on servers. On real property, 0.273 percent is refunded because the county rate is only 0.927 percent. What remains is split 80 percent to the master developer for public infrastructure and 20 percent to MIDA and the state. Property that is not a compute complex pays ordinary property tax once it gets a certificate of occupancy. MIDA may collect 75 percent of that for up to 40 years. Stratos Development Agreement MIDA also levied a municipal energy sales and use tax in the project area at 0.5 percent of delivered value beginning October 1, 2026. That money goes to the county. MIDA Ordinance 2026-01 Stratos Development Agreement The developer has to pay for all public infrastructure. It also committed 16.2 million dollars upfront to cover the county's cost of hiring police and fire workers. The county projects about 30 million dollars a year in new revenue in the early phases. That rises to a projected 108 million dollars a year at full build out. The developer says phase one would occupy only about 5 percent of the project area acres. Box Elder County Box Elder County fact sheet Governor's Office FAQ Stratos Project developer site The developer partnership includes O'Leary Digital Utah Development Co., LLC. It has committed to about 2,000 permanent jobs at full build out of the AI data center campus. Stratos Project developer site | The MIDA board approved the project area on April 24, 2026. Box Elder County commissioners unanimously passed two consent resolutions, 26-11 and 26-12, on May 4, 2026 after intense public opposition. The conditions they attached included 1) county representation on a project board, 2) dark skies protections, 3) noise standards, and 4) public safety assurances. Stratos Project Area Plan Utah News Dispatch On June 4, 2026 O'Leary agreed to shrink the campus from 40,000 acres to 20,000 acres. That followed a demand letter from Senate President and MIDA chair Stuart Adams asking for a 75 percent cut. He also added 1) Great Salt Lake water commitments, 2) open space and wildlife set asides, 3) heat capture technology, and 4) independent environmental reviews. Utah News Dispatch That reduction has not been papered into the record yet. The project area plan MIDA still publishes carries an effective date of May 4, 2026. It still describes about 40,000 acres of private land. No formal development plan had been filed as of the state FAQ. No notice of intent had reached the Division of Air Quality, and the Division of Wildlife Resources describes its own review as waiting on a formal plan. Stratos Project Area Plan FAQ on Stratos Project Air quality permits, an engineering review, and an environmental study all still lie ahead. Adams said in June 2026 that no approvals or permits had been applied for. Governor's Office FAQ Utah News Dispatch The campus is planned to make its own power off the shared grid. The state says the development will produce all power on site and will not add pressure to the grid. Box Elder County fact sheet FAQ on Stratos Project Utah built the legal room for that in 2025. S.B. 132 enacted Utah Code chapter 54-26 and defined a closed private generation system as generation that runs independently of a utility transmission system and serves at least 100 megawatts. Utah S.B. 132, 2025 General Session No source I found places Stratos under that chapter, so treat the fit as likely rather than established. | Live. The MIDA board approved the project area on April 24, 2026. The Box Elder County Commission consented on May 4, 2026. It is in force now. Stratos Project developer site Box Elder County later adopted Ordinance 654 on June 10, 2026. It is a 180 day freeze on new county AI data center applications. The 180 days run from passage and publication. Box Elder County Ordinance 654 That freeze does not reach the Stratos project area. The county says MIDA projects do not go through county land use review. Fox 13 |
| Legal and referendum challenges to the Stratos approval | No benefit. This is the live risk sitting on top of the Stratos project area. Two separate challenges are pending. Box Elder Accountability Referendum filed suit in Utah's 1st District Court on June 3, 2026. The suit appeals the county attorney's rejection of its referendum applications on resolutions 26-11 and 26-12. Salt Lake Tribune Box Elder County Utah News Dispatch Utah Civic Compact makes a separate claim. It says MIDA adopted the project area plan before Box Elder County had legally consented. It also says MIDA entered a binding developer agreement before the plan was lawfully adopted. Fox 13 I found no decision in either case as of August 2, 2026. KUER | Nothing is required of a developer. Anyone underwriting a project inside this area should treat the land use authority and the project area plan as contested until the courts rule. Salt Lake Tribune | Pending and undecided, with no end date. County Attorney Stephen R. Hadfield rejected both referendum applications on May 28, 2026. He held that resolutions 26-11 and 26-12 were administrative acts and so were not referable to voters. The county's referendum page shows no county action after that. Box Elder County Stratos Project Referendum No hearing had been scheduled in the district court appeal as of early June 2026. Utah News Dispatch |
Millard County
Rural Millard County near Delta is the one place in Utah where an AI data center has verifiably won a state income tax credit, and it hosts two separate gigawatt scale campuses. Governor's Office of Economic Opportunity Utah Foundation
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Creekstone Energy REDTIF award | The Governor's Office of Economic Opportunity awarded Creekstone Energy a post performance refundable tax credit on April 9, 2026. It came under the Rural Economic Development Tax Increment Financing program. The rate is the full rural 50 percent of new state tax revenue. The award runs 20 years. Over that term it projects 1) 106 new high paying jobs, 2) about 333 million dollars of wages, and 3) about 344 million dollars of new state tax revenue. Governor's Office of Economic Opportunity Area Development The award sits under Utah Code 63N-2-104.3, the section that caps the credit amount. It allows up to 50 percent of new state revenues over a period of up to 20 years in counties of the third through sixth class. Utah Code 63N-2-104.3 Governor's Office of Economic Opportunity | Creekstone committed to invest about 17.1 billion dollars in Utah over 20 years for the Creekstone Gigasite near Delta. That campus is behind the meter, with onsite natural gas generation and utility scale solar. It is aimed at 10 gigawatts. The credit is post performance, so nothing pays out until the jobs and the revenue are verified. Governor's Office of Economic Opportunity | Live. The Governor's Office of Economic Opportunity approved the award on April 9, 2026. The term runs 20 years. That keeps it open into the 2040s. Governor's Office of Economic Opportunity |
| Millard County industrial zoning for large campuses | The county's contribution here has been land use rather than money. The Millard County Commission approved zoning changes at the end of June 2025. Those changes opened the way for gigawatt scale energy and AI data campuses near the Intermountain Power Project. The commission approved a further rezoning on January 20, 2026 for solar to serve them. Nine Rivers Vision Utah Foundation Millard County Commission minutes, January 20, 2026 I found no county tax abatement for either campus. The only Utah incentive award announced for an AI data center in this county is the state REDTIF credit to Creekstone. Governor's Office of Economic Opportunity Millard County Commission minutes, June 2, 2026 | A separate 4,000 acre campus is planned near the Intermountain Power Project at up to 4 gigawatts. Joule Capital Partners leads it with Caterpillar and Wheeler Machinery. It would use Caterpillar generator sets and 1.1 gigawatt hours of battery storage. ENR Power Engineering The county approved the rezoning of that parcel. It still requires a conditional use permit before construction. I found no state or county incentive agreement announced for the Joule campus as of August 2, 2026. DataCenterDynamics Utah Foundation | In effect now, with no expiration. The county is still processing approvals under it. Millard County commissioners adopted Ordinance 26-06-02 on June 2, 2026. It approves a legislative development agreement for a Joule Capital Partners natural gas pipeline. That ordinance does not take effect for 75 days while the conditions in it are met. At the same meeting the commissioners told residents that no tax breaks are being offered for the AI data center projects. They also said water rights are handled by state agencies rather than by the county. Millard County Commission minutes, June 2, 2026 |
Salt Lake County
The Novva campus in West Jordan and the Aligned campus near Salt Lake City anchor the market, and I found no county tax break here beyond the statewide sales tax exemption every qualifying AI data center gets. Aligned Data Centers EDCUtah Utah Code 59-12-104(84)
Utah County
Home of Meta's Eagle Mountain campus, which carries one of the largest negotiated property tax packages in Utah history. Salt Lake Tribune Deseret News Eagle Mountain has since signed a second AI data center incentive with QTS and created a second community reinvestment area next to the Meta site. Eagle Mountain City Council packet Daily Herald Eagle Mountain City announced in October 2021 that Google had bought land in the city for a possible AI data center. I found no public incentive agreement for Google since. Fox 13 Deseret News, October 4, 2021
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Meta Eagle Mountain tax increment package | Meta gets 100 percent relief on personal property taxes and 80 percent relief on real property taxes for 40 years. That relief comes from four of the five local taxing entities. Alpine School District capped its own share at 40 million dollars per phase and 120 million dollars in total over 35 years. Phase 1 relief was valued at about 150 million dollars over 20 years. A study the city commissioned put full five phase relief at up to 750 million dollars. Salt Lake Tribune Deseret News The state added sales tax exemptions written specifically for data centers by the Utah Legislature. Deseret News, May 30, 2018 Reporting at the time put that state sweetener at about 5 million dollars on top of the property tax relief. Salt Lake Tribune | The package was negotiated in 2018. The Utah County Commission, Eagle Mountain, and the other taxing entities approved roughly 150 million dollars in property tax incentives to land what was then an unnamed Facebook project. The package ran 20 years for Phase 1 and covered a two building project of about 970,000 square feet worth 750 million dollars, on a parcel of roughly 500 acres. Deseret News, May 30, 2018 The Salt Lake Tribune reported the city presenting the ask to the Utah County Commission on May 1, 2018. It described a 487 acre community reinvestment area with a full personal property exemption and an eighty twenty split of the real property increment. That article is paywalled, so those two details rest on its reporting alone. Salt Lake Tribune Meta has invested about 1.5 billion dollars through Phase 3, plus roughly 150 million dollars of self funded power, water, sewer, and road infrastructure. Deseret News | Live and being extended. The Meta campus sits inside the Sweetwater Number 1 project area. On September 2, 2025 the Eagle Mountain Redevelopment Agency moved to designate a survey area and draft a plan for a fourth project area. That fourth area would cover an expansion of the AI data center campus. Eagle Mountain Redevelopment Agency September 2, 2025 agenda By its January 6, 2026 meeting the agency reported that the Sweetwater Number 4 area was fully approved. Its project area plan, budget, interlocal agreements, and participation agreement were all in place. The agency amended the plan and budget that night to match the participation rates the taxing entities had agreed to. Eagle Mountain Redevelopment Agency January 6, 2026 minutes |
| Eagle Mountain Community Reinvestment Area tax increment sites | The Eagle Mountain Redevelopment Agency can rebate property tax increment to a company that builds inside a Community Reinvestment Area. The areas are the Pole Canyon and Eagle Mountain Properties industrial sites. Both carry the city's Regional Technology and Industry Overlay Zone. Eagle Mountain City A second area, the Sweetwater Industrial Park Community Reinvestment Area Number 2, covers about 327 acres next to the Meta site. The city council adopted its project area plan on March 16, 2021. The Utah County Commission approved the interlocal agreement on May 26, 2021 for a 600 million dollar AI data center. That increment is directed to 1) public infrastructure, 2) land and job incentives, and 3) affordable housing. Daily Herald | A project has to sit inside a designated community reinvestment area. It also has to negotiate increment terms with the city redevelopment agency and the participating taxing entities. Eagle Mountain City In the Sweetwater Number 2 negotiation the county commission insisted on taking 100 percent of the affordable housing subsidy generated by the project rather than splitting it with the city. Daily Herald | Live, with no announced end date. The agency is still running. On January 6, 2026 it appointed a new executive director to 1) handle day to day operations, 2) represent the agency to the taxing entities, and 3) report on the ongoing community reinvestment project areas. Eagle Mountain Redevelopment Agency January 6, 2026 minutes The city still lists both industrial sites on its economic development page. Eagle Mountain City |
| QTS Eagle Mountain colocation development agreement | Eagle Mountain City approved a tax increment financing agreement with QTS Eagle Mountain I on July 18, 2023. The participation rate is 61 percent of real property tax revenue and 74 percent of personal property tax revenue. State law then pulls 10 percent of any increment owed to the company out for affordable housing. Another 2.5 percent is held back for administration. City staff put the first six buildings at roughly 2 billion dollars of investment. They also projected 1) about 100,000 dollars per building per year toward affordable housing, 2) about 35,000 dollars per building per year in property tax during the incentive period, and 3) about 1 million dollars a year in municipal energy tax. Eagle Mountain City Council packet | QTS approached the landowner in 2022 about buying up to 200 acres immediately west of the Meta property. The plan was for at least 2.5 million square feet of colocation space. The site sits inside the city's Regional Technology and Industry Overlay Zone. The city treated the colocation model as the reason for a deeper break. A colocation operator has to price leases against other markets while a single user campus does not. The campus is designed to use no water for cooling. It would have roughly 500 temporary construction workers on site daily and about 150 to 200 permanent jobs. Eagle Mountain City Council packet | Live and the AI data center is being built. Eagle Mountain City announced on October 29, 2025 that construction on the QTS campus had restarted. The restart followed a short delay to get the energy infrastructure in place. Eagle Mountain City |
Vermont does not offer an AI data center tax incentive at the state level or the local level, and the national survey Vermont lawmakers were shown in February 2026 puts the State in the no incentive group. NCSL Vermont data center overview, Senate Finance, February 10, 2026 NCSL state data center incentive table In 2026 the legislature moved the other way and passed H.727, a bill that would have regulated large AI data centers rather than recruit them. Governor Scott vetoed it on May 28, 2026, and the House override failed the next day at 83 yeas to 52 nays when 90 were needed. Bill Status H.727 Governor Scott veto message
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Vermont Employment Growth Incentive (VEGI) | VEGI pays a business cash from the State when it adds new jobs, new payroll, and new capital investment in Vermont. The Vermont Economic Progress Council runs the award through a cost benefit model. It pays out in five annual installments as the company hits its targets. Because it is cash rather than a credit, it does not reduce a Vermont tax bill. Agency of Commerce VEGI program page 32 V.S.A. § 3330 This is Vermont's flagship general incentive and the closest thing an AI data center could apply for. Act 128 of 2026 also cut the annual program cap in 32 V.S.A. § 3342. The cap for initial approvals fell from 15 million dollars to 10 million dollars. The cap for final approvals fell from 10 million dollars to 5 million dollars. The Council can add up to 5 million dollars more if the Governor asks and the Joint Fiscal Committee agrees. S.327 as passed by both chambers | The business applies to the Vermont Economic Progress Council and has to win Final Approval. Initial Approval is optional and can come first. The Final Application has to be filed no later than the Council's last deadline in the calendar year the project begins. The applicant must show three things. 1) The project would not happen the same way without the incentive. 2) The new qualifying jobs beat background growth in that industry. 3) The project throws off more state revenue than the incentive costs. An award can cover one to five years of new activity. Payment each year depends on hitting that year's job, payroll, and capital targets. Agency of Commerce VEGI program page There is no minimum project size, no minimum job count, and no restriction on the type of business. The problem for an AI data center is the formula. It rewards payroll. A server hall runs on a couple dozen people once it is built, so a Vermont award would be small. VTDigger, February 24, 2026 I read the full recipient list in the Council's 2025 annual report, which runs back to the program's start in 2007. No data center or colocation operator appears anywhere in it. The seven applicants coded to the information sector are software, publishing, and mapping firms such as Dealer.com, Ivy Computer, and Maponics. VEPC VEGI Annual Report 2025 | Active and permanent. Act 128 of 2026 (S.327), signed June 8, 2026, repealed the January 1, 2027 sunset. Bill Status S.327 Downs Rachlin Martin economic development session review |
| Manufacturing machinery and manufacturing fuel sales tax exemptions | This pair of exemptions takes Vermont's 6 percent sales and use tax off two things. First, machinery and equipment used as an integral or essential part of an integrated production operation at a plant that manufactures tangible personal property for sale. Second, the electricity, oil, gas, and other fuel used directly or indirectly to manufacture tangible personal property for sale. 32 V.S.A. § 9741 32 V.S.A. § 9771 | The buyer has to be a manufacturing or processing business making tangible personal property for ultimate sale. An AI data center does not manufacture tangible personal property, so its servers, its cooling plant, and the electricity it burns on computing all fall outside. The statute makes the point twice over. It excludes office machines and equipment, including computers and related peripheral equipment, that are not used directly and primarily to control or measure the manufacturing process. It also excludes machinery and equipment used for general plant heating, cooling, and lighting. 32 V.S.A. § 9741(14)(E) There is no Vermont exemption written for AI data center equipment. Commercial electricity for an AI data center stays taxable. | Active. 32 V.S.A. § 9741 |
| Municipal tax stabilization agreements | A Vermont town may contract with the owner, lessee, or operator of commercial or industrial property to fix or stabilize the property taxes on it for a term of years. 24 V.S.A. § 2741 This is the main state enabled local property tax incentive an AI data center could ask for anywhere in Vermont. | The agreement is made under 24 V.S.A. § 2741. Towns commonly put it to a town vote, the way Richmond did for an economic development stabilization article on a redevelopment property. 24 V.S.A. § 2741 Richmond tax stabilization presentation Town policies often narrow it further. Fair Haven limits stabilization to the municipal share of the property tax and sends anyone wanting the education share to the Vermont Economic Progress Council. Its policy gives new commercial and industrial buildings 50 percent stabilization for five years. Highgate runs it through a written policy as well. Fair Haven tax stabilization policy Highgate tax stabilization policy Reaching the statewide education property tax takes a second step. A commercial or industrial stabilization agreement entered into after June 30, 1997 affects the education property tax grand list only if the Vermont Economic Progress Council approves it. The Council votes after the municipality does. The education side cannot be cut in a greater proportion than the municipal side. Agreements voted before July 1, 1997 are grandfathered. 32 V.S.A. § 5404a As of August 2, 2026 I found no Vermont town that has granted one of these to a data center. I also found no publicly recorded local deal of any kind for the small existing facilities. VTDigger, February 24, 2026 | Active. 24 V.S.A. § 2741 |
| Tax increment financing districts | A municipality may create a tax increment financing district and borrow against the growth in property value inside it. The new property tax revenue repays the debt. 24 V.S.A. § 1891 24 V.S.A. § 1892 24 V.S.A. § 1894 The town keeps up to 70 percent of the increase in property tax revenue for infrastructure debt. At least 30 percent still flows to the Education Fund. VEPC tax increment financing page The money pays for public infrastructure such as streets, sidewalks, and stormwater systems. A company sitting inside a district gets served infrastructure rather than a tax break of its own. | The municipality adopts a district plan, holds public hearings, and votes to create the district and pledge municipal increment. It then applies to the Vermont Economic Progress Council. The Council has to approve any use of the incremental statewide education property tax. VEPC tax increment financing page 32 V.S.A. § 5404a This is not a company specific incentive. There is no AI data center application path into it. A 2025 Joint Fiscal Office review counted eight Vermont districts, none of them tied to a data center. The State's annual report for fiscal year 2025 counts nine active districts after Rutland was approved in April 2025, and none is tied to a data center. Joint Fiscal Office 2025 TIF report TIF Annual Report FY25 | Active. VEPC tax increment financing page |
County and local programs
Addison County
New Haven sits next to a VELCO substation. It is another of the five sites Green Mountain Power modeled for a large AI data center load. The theory is that a well placed customer of that size could spread the fixed costs of the system and pull residential bills down. VTDigger, February 24, 2026 There is no project, no application, and no local incentive.
Chittenden County
Vermont's small data centers cluster here. Legislative counsel told the House Committee on Energy and Digital Infrastructure in February 2026 that there are at least three traditional data centers in Chittenden County drawing about five megawatts combined. VTDigger, February 24, 2026 The one facility I could identify by name is Tech Vault's roughly 35,000 square foot colocation site at 21 Gregory Drive in South Burlington, with about 1 megawatt of utility power. Cloud and Colocation listing for Tech Vault No local tax incentive attaches to any of them, and no town in the county offers an AI data center break. South Burlington is moving the other way and writing AI data centers into its zoning. Its planning commission approved amendment LDR-26-07. The amendment defines a data center and splits small scale from large scale at 20,000 square feet. It treats anything at or under 5,000 square feet as general commercial instead. It allows small scale facilities in only the mixed industrial commercial and industrial districts. The City Council took it up on first reading on July 6, 2026. South Burlington land development regulation updates VTDigger, June 6, 2026 Green Mountain Power also tested a Williston site next to the GlobalFoundries campus as one of five places a large load could plug in. VTDigger, February 24, 2026
Franklin County
St. Albans is where the first known attempt to land a large AI data center in Vermont happened. The town manager at the time, Sean Adkins, worked with a developer on one of two possible projects, either 8 to 12 megawatts or 50 megawatts, and the larger one would have meant roughly 1,000 temporary construction jobs and 20 permanent ones. It died on the grid connection, because a substation big enough to serve it would have cost around 30 million dollars. VTDigger, February 24, 2026 A University of Vermont power systems researcher gave the same account of the withdrawal. Vermont Public, February 26, 2026 No incentive was offered or adopted.
Rutland County
Green Mountain Power tested a site near the former granite quarry in West Rutland as one of five places a 50 to 200 megawatt load could connect. VTDigger, February 24, 2026 Vermont Public, February 26, 2026 Rutland is also the one place in Vermont where I found a public official saying plainly that he is trying to attract this kind of project. Sean Adkins, who ran the failed St. Albans effort and now leads the Rutland Development Authority, told VTDigger he would not be doing his job if he were not chasing data center projects for Rutland. VTDigger, February 24, 2026 No incentive has been adopted and no project has been proposed.
Windham County
Vernon is the live site to watch. PowerTransitions is a Houston power development company owned by the private equity firm Partners Group. It holds a lease and a right of first refusal from NorthStar Group Services on the 140 acre former Vermont Yankee parcel. PowerTransitions is weighing an AI data center, a small modular reactor, or battery storage there. The State and the company were working on a letter of intent in June 2026. That letter would govern how the project and its public engagement would proceed. The Department of Public Service commissioner says the State itself held the first option on the parcel under a 2018 memorandum of understanding. Nothing had been formally submitted to the town as of that reporting, decommissioning is not finished, the Nuclear Regulatory Commission still has to release the site, and any project would go through either Act 250 or Section 248. Brattleboro Reformer via the Greenfield Recorder, June 24, 2026 Green Mountain Power separately tested a Vernon site next to the old plant as one of five large load locations. VTDigger, February 24, 2026 No incentive has been offered and none exists.
Windsor County
Royalton voters approved a five year moratorium on building AI and crypto data centers by a show of hands at Town Meeting on March 3, 2026, and the Planning Commission was directed to write it into the town plan for Selectboard approval. Valley News, March 3, 2026 The article reached the warning after a resident raised the issue with the Selectboard in January. Valley News, February 8, 2026 That is the opposite of an incentive, and no incentive exists anywhere in the county.
Northern Virginia is the largest data center market in the world, holding 13 percent of reported operational capacity worldwide. JLARC, Data Centers in Virginia, December 2024 The state's main incentive for it is a retail sales and use tax exemption on computer equipment and enabling software, it runs through June 30, 2035, and it can stretch to 2040 or 2050 for the biggest builders. Va. Code 58.1-609.3(18) VEDP Data Center Retail Sales and Use Tax Exemption The two year budget the Governor approved on June 29, 2026 as Chapter 1 kept that exemption and added a new electricity consumption tax of 0.011 dollars per kilowatt hour starting July 1, 2026. HB 30, 2026 Special Session I, Chapter 1 Williams Mullen So the state now hands out a break that operators reported at about 1.94 billion dollars in fiscal year 2025 while taking back as much as 600 million dollars a year. Department of Taxation biennial report, January 2, 2026
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Data Center Retail Sales and Use Tax Exemption | Full exemption from Virginia retail sales and use tax on computer equipment and enabling software bought or leased for the processing, storage, retrieval, or communication of data. The statute names servers, routers, connections, and other enabling hardware. It expressly reaches chillers and backup generators used to run that exempt equipment. Va. Code 58.1-609.3(18) It also covers equipment bought later to upgrade, supplement, or replace the original investment. That means an AI data center can keep refreshing servers tax free for the life of the program. The exemption also reaches facilities in the same locality that are under common ownership or affiliation with the operator. Va. Code 58.1-609.3(18) It does not cover software sold separately from the equipment, and it does not cover general building improvements or fixtures. Department of Taxation biennial report, January 2, 2026 The exemption runs from July 1, 2010 through June 30, 2035. VEDP Data Center Retail Sales and Use Tax Exemption Operators self reported an aggregate tax benefit of about 1.29 billion dollars for fiscal year 2024 and about 1.94 billion dollars for fiscal year 2025. Those figures combine the state general fund, the non general fund, and local revenue. They also reported about 33.2 billion dollars of exempt equipment and software purchases and 1,610 net new jobs in fiscal year 2025. Department of Taxation biennial report, January 2, 2026 | The operator has to sign a memorandum of understanding with the Virginia Economic Development Partnership Authority before claiming the exemption. VEDP Data Center Retail Sales and Use Tax Exemption The general thresholds are 150 million dollars of new capital investment and 50 new jobs tied to operating or maintaining the AI data center. Each of those jobs has to pay at least one and one half times the prevailing annual average wage in that locality, excluding fringe benefits. Va. Code 58.1-609.3(18) VEDP Data Center Retail Sales and Use Tax Exemption In a distressed locality the thresholds drop to 70 million dollars and 10 new jobs. The locality has to be distressed when the memorandum of understanding is signed. A distressed locality is one whose annual unemployment rate and poverty rate both ran above the statewide averages for the most recent year with data. Va. Code 58.1-609.3(18) Neither the Virginia Economic Development Partnership Authority nor the Department of Taxation publishes a current list of which localities qualify. As of July 19, 2026 an operator has to ask the agency rather than look it up. VEDP Data Center Retail Sales and Use Tax Exemption The exemption is available to the operator and to tenants of a colocation facility collectively. A facility may start using the exemption before hitting the thresholds. It generally has to meet them within three years of the memorandum of understanding or repay the value of the benefit. It also files an annual report on employment, capital investment, average wages, qualifying expenses, and the value of the benefit. VEDP Data Center Retail Sales and Use Tax Exemption | Active through June 30, 2035. The budget the Governor approved on June 29, 2026 left the exemption and its sunset untouched. The Senate had spent the session trying to end it at the start of 2027. HB 30, 2026 Special Session I, Chapter 1 Hunton |
| Mega Investment Extension of the Sales and Use Tax Exemption to 2040 and 2050 | Two extensions of the same equipment exemption for very large operators. Hitting the first tier keeps the exemption running through June 30, 2040. Hitting the second tier keeps it running through June 30, 2050. Va. Code 58.1-609.3(19) VEDP Data Center Retail Sales and Use Tax Exemption The extension covers equipment in every AI data center under common ownership or affiliation that is named in the memorandum of understanding. It covers refresh equipment the same way the base exemption does. An operator counts as owning a facility it runs under a long term lease of at least ten years. Va. Code 58.1-609.3(19) | The operator has to have signed a memorandum of understanding with the Virginia Economic Development Partnership Authority on or after January 1, 2023. For the 2040 extension, the investment has to fall on or after January 1, 2023 but before July 1, 2035. The operator has to invest at least 35 billion dollars in AI data centers in the localities named in that agreement. It also has to create at least 1,000 new full time jobs. At least 100 of those jobs have to pay one and one half times the prevailing average wage in the Commonwealth. For the 2050 extension, the window runs on or after January 1, 2023 but before July 1, 2040. The operator has to reach a total of at least 100 billion dollars invested and 2,500 new full time jobs, counting everything from the first tier. Again at least 100 of those jobs have to pay one and one half times the Commonwealth average wage. Only one memorandum of understanding is needed for both tiers. Annual reporting continues throughout. Va. Code 58.1-609.3(19) One wrinkle worth knowing is that the agency summary page measures the wage test for these tiers against the prevailing average wage in the locality. The statute says the Commonwealth. The statute controls. VEDP Data Center Retail Sales and Use Tax Exemption Va. Code 58.1-609.3(19) Amazon Web Services announced a 35 billion dollar Virginia investment by 2040 in January 2023. That matches the first tier exactly and is almost certainly what the tier was drafted around. The agency does not publish executed memoranda, and no signed agreement invoking the extension was public as of July 19, 2026. VEDP announcement, January 20, 2023 | Active through June 30, 2040 or June 30, 2050 for an operator that reaches the tiers. Va. Code 58.1-609.3(19) VEDP Data Center Retail Sales and Use Tax Exemption |
| Data Center Electricity Consumption Tax (a new cost, not an incentive) | This is a tax, not a benefit. It is the single biggest change to Virginia AI data center economics in years. Every data center operator pays 0.011 dollars per kilowatt hour on all electricity consumed at each Virginia facility each month. The tax reaches both utility supplied power and self supplied generation. It also reaches power delivered where there is no incumbent electric utility. Williams Mullen BDO Statewide collections are capped at 600 million dollars a year. Beginning with every fiscal year on and after July 1, 2027 the State Corporation Commission refunds anything collected above the cap, less its own administrative costs. The refund is pro rata by each operator's share of tax paid that fiscal year, with no interest. Refunds for utility customers are credited to the account by the utility or competitive service provider. Refunds for self supplied power come straight from the Commission. Electric utilities, electric cooperatives, and competitive service providers all have to show the tax as a separate line item on the bill. Williams Mullen Hunton Legislative reporting put the two year yield at roughly 1.2 billion dollars. Virginia Business The Governor publicly described the levy as a first of its kind consumption tax on data centers. She said Virginia may later add standards for water use and backup generation at AI data centers. Governor of Virginia news release, July 6, 2026 | A data center operator is anyone who owns, operates, or occupies a Virginia data center, or who owns or operates one using self supplied generation. Liability applies whether or not the operator claims the sales and use tax exemption. It applies whether or not the building was already open or the lease already signed when the tax took effect. Where several parties could count as the operator of one facility, the person responsible for the utility account at that service point owes the tax on power delivered through that account. The person responsible for self supplied generation owes the tax on that power. Williams Mullen BDO A data center here means a facility whose primary service is centralizing the storage, management, and processing of digital data. The facility houses server and network systems, monitoring systems, and power and cooling infrastructure supporting at least one megawatt of electrical capacity. Facilities whose primary function is internet access service or communications service under Va. Code 58.1-647 are out. Williams Mullen The tax took effect July 1, 2026. The first collection is due in September 2026 and covers July 1 through September 1, 2026. The budget told the State Corporation Commission to publish implementation guidelines within 60 days of enactment. Measured from the June 29, 2026 approval that runs to about August 28, 2026. As of July 19, 2026 the Commission had not published them. HB 30, 2026 Special Session I, Chapter 1 Hunton | Effective July 1, 2026. It is scheduled to expire after June 30, 2028 at the end of the two year budget cycle, unless the General Assembly extends it. Hunton |
| Single Sales Factor Apportionment for Enterprise Data Centers | Lets a qualifying taxpayer apportion Virginia taxable income using the sales factor alone instead of Virginia's usual formula that also counts property and payroll. Va. Code 58.1-422.2 An AI data center owner is property heavy and payroll light in Virginia but usually sells very little into Virginia. Dropping the property and payroll factors can therefore cut the Virginia corporate income tax bill sharply. The corporate rate is 6 percent. Va. Code 58.1-400 The pure sales factor applies for taxable years from July 1, 2017 forward. A transitional formula ran from July 1, 2016 to July 1, 2017 and weighted the sales factor four times. An eligible company under Va. Code 58.1-405.1 may also subtract the value of its Virginia sales from the numerator. That subtraction runs for the first eligible year and the six following consecutive years. Va. Code 58.1-422.2 | Applies only to taxpayers that signed a memorandum of understanding with the Virginia Economic Development Partnership Authority on or after July 1, 2015. That agreement has to commit to at least 150 million dollars of new capital investment in an enterprise data center in the Commonwealth. Enterprise data center operations means operations that 1) house information technology equipment such as servers, switches, routers, and storage, 2) manage and process digital data to provide application services or data processing management, 3) are developed and owned by the taxpayer, and 4) are operated by the taxpayer or any of its affiliates substantially for their own use. Va. Code 58.1-422.2 That last piece matters, because a pure colocation landlord renting to third parties generally does not qualify. The formula applies starting with the taxable year in which the agency certifies in writing that the capital investment is complete. Va. Code 58.1-422.2 | Active, with the pure sales factor in force for taxable years beginning on or after July 1, 2017. Va. Code 58.1-422.2 |
| Local Separate Classification of Data Center Computer Equipment (enabling law) | The state gives nothing away here. The statute lets every Virginia county and city carve computer equipment and peripherals used in a data center into its own class of tangible personal property. A locality can then set a lower rate on that class than the rate on other business property. Va. Code 58.1-3506(A)(43) Virginia has no state property tax on this equipment, so the whole property tax question is local. This statute is why local rates run from 24 cents per 100 dollars in Chesterfield and Southwest Virginia up to 5 dollars per 100 dollars in Arlington. Cardinal News, March 5, 2026 Spotsylvania County FY2027 budget question response A locality cannot set the data center rate higher than its general tangible personal property rate. Va. Code 58.1-3506(A)(43) | The locality has to adopt an ordinance creating the separate class and setting the rate. Va. Code 58.1-3506(A)(43) Each locality also sets its own assessment schedule. That schedule is the percentage of original capitalized cost that is taxable in each year after purchase. Those schedules vary as much as the rates do. Nothing obligates a locality to adopt a lower rate. Several have raised theirs sharply since 2024 or lengthened the depreciation schedule to raise the taxable base without touching the headline rate. Loudoun County business personal property assessment schedules Prince William County 2024 data center revenue report Spotsylvania County FY2027 budget question response | Active, and each locality decides for itself whether to use it. Va. Code 58.1-3506(A)(43) |
| Cost Approach Assessment of Data Center Fixtures | Requires a local assessor who taxes data center fixtures as real property to value them using the cost approach rather than an income approach. The statute defines the cost approach as the cost to construct a reproduction or suitable replacement of the fixtures less physical, functional, and economic depreciation. Va. Code 58.1-3295.3 For a purpose built shell full of expensive electrical and mechanical gear that usually produces a lower and far more predictable number than capitalizing the rents a stabilized hyperscale lease generates. It gives an AI data center developer a fixed rule to underwrite against. | Applies to fixtures at a data center. That means all fixtures and equipment used in the facility, except computer equipment and peripherals, external surveillance and security equipment, and fire and burglar alarm systems. The statute lists generators, radiators, exhaust fans, fuel storage tanks, electrical substations, power distribution equipment, cogeneration equipment, batteries, chillers, computer room air conditioners, cooling towers, heating and ventilating and air conditioning systems, water storage tanks, water pumps, piping, monitoring systems, and transmission and distribution equipment. Computer equipment and peripherals stay taxed as tangible personal property under Va. Code 58.1-3503(A)(17) or Va. Code 58.1-3506(A)(43). The section was enacted in 2022. Va. Code 58.1-3295.3 | Active since its 2022 enactment. Va. Code 58.1-3295.3 |
| Commonwealth's Development Opportunity Fund | A discretionary deal closing grant awarded by the Governor to land or expand a project in Virginia. The amount is negotiated by the Secretary of Commerce and Trade on the recommendation of the Virginia Economic Development Partnership Authority. VEDP Commonwealth's Development Opportunity Fund Va. Code 2.2-115 It is general purpose rather than AI data center specific. Several large Virginia announcements have carried an award from it. | There has to be real competition between Virginia and another state or country for the project. Matching local financial participation is expected. The project has to be tied to a basic employer. That means most of the facility's revenue comes from outside the Commonwealth. The average annual wage for the new jobs has to be at least the prevailing average annual wage in the locality, excluding fringe benefits. If the wage is at least twice that local average the Governor may lower the job creation threshold. The award is documented in a performance agreement with clawback obligations. The announcement has to be coordinated with the agency and the Governor's Office. VEDP Commonwealth's Development Opportunity Fund | Active, a general program an AI data center can use. VEDP Commonwealth's Development Opportunity Fund |
| Virginia Investment Performance Grant | A discretionary performance grant for an existing Virginia manufacturer or research and development operation making a major capital investment. The Secretary of Commerce and Trade sets the amount based in part on the Virginia Economic Development Partnership Authority return on investment analysis. The Governor approves it. VEDP Virginia Investment Performance Grant Va. Code 2.2-5100 Useful mainly for an operator expanding a facility it already runs in Virginia. | There has to be active competition between Virginia and another state or country. Matching local financial participation is expected. No minimum new job count applies. The investment must not cause any net reduction in employment from the date the capital investment is complete through one year afterward. The company notifies the agency in writing within 90 days of completing the capital investment. VEDP Virginia Investment Performance Grant | Active, and a general program. The fit for an AI data center is uncertain because it targets manufacturing and research and development. VEDP Virginia Investment Performance Grant |
| Major Business Facility Job Tax Credit | Gave a 1,000 dollar credit against Virginia income tax for each qualified full time employee above the threshold amount, employed during the credit year. For credit years beginning on or after January 1, 2009 the credit was allowed one half each year across two taxable years. Unused credit could be carried forward for the next ten taxable years. It could not be carried back. Va. Code 58.1-439 It was one of the few Virginia credits an AI data center could realistically reach. Hyperscale facilities employ few people and rarely cleared the count. | The statute applies to taxable years beginning on and after January 1, 1995 but before July 1, 2025. The threshold was 50 new qualified full time jobs. It dropped to 25 if the facility sat in an economically distressed area or an enterprise zone. An economically distressed area was a city or county whose unemployment rate for the preceding year ran at least one half of one percentage point above the statewide average. Retail trade businesses were excluded where retail was the principal activity of the facility. Credit was recaptured if the qualified employee count fell in any of the five years after the credit year. Va. Code 58.1-439 | Expired for taxable years beginning on or after July 1, 2025. Carryforward of previously earned credit may still apply. Va. Code 58.1-439 |
County and local programs
Arlington County
A dense urban county with legacy carrier hotels and network facilities rather than hyperscale campuses. It has the highest published data center equipment rate among the Virginia localities surveyed and offers no discount. Arlington County business tangible personal property Spotsylvania County FY2027 budget question response
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| No local data center incentive identified | None. Arlington taxes business tangible personal property, computer equipment included, at 5 dollars per 100 dollars of assessed value. The county assesses that property at a set percentage of original capitalized cost keyed to the year of purchase, with the County Board setting the rate each year. Arlington County business tangible personal property Arlington does not publish the percentage schedule itself on that page, so the first year figure for computer equipment is not something I can source. Spotsylvania County's FY2027 budget survey lists the same 5 dollar figure for qualifying data center equipment. That is the highest in the survey and more than twenty times the Chesterfield rate. Spotsylvania County FY2027 budget question response | There is no separate reduced data center class. Arlington County business tangible personal property The state statute that would let the county create a lower taxed class for AI data center computer equipment is Va. Code 58.1-3506(A)(43). State level incentives still apply to a qualifying operator. The state thresholds of 150 million dollars and 50 jobs are hard to reach in a small urban footprint. VEDP Data Center Retail Sales and Use Tax Exemption | No local incentive is in effect. Arlington has adopted no separate data center class. The survey prepared for the Spotsylvania County fiscal year 2027 recommended budget still lists Arlington at the full 5 dollars per 100 dollars. That is the highest data center equipment rate in the survey. Spotsylvania County FY2027 budget question response |
Caroline County
A rural county between Fredericksburg and Richmond that has moved aggressively on AI data centers, including a performance agreement with CleanArc and a cross border revenue sharing deal with Spotsylvania. Caroline County CleanArc performance agreement Caroline County revenue sharing agenda item
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Reduced data center equipment classification and a CleanArc performance agreement | The county sets an alternative personal property tax rate of 1 dollar and 25 cents per 100 dollars of assessed valuation for data center equipment qualifying under the state classification statute. Caroline County alternative data center rate Spotsylvania County FY2027 budget question response On top of the classification the Board of Supervisors approved an economic development performance agreement with CleanArc. Under that agreement the developer builds three AI data center buildings of roughly 490,000 square feet each. It then leases data hall space to hyperscale users. Annual grant payments are drawn from the increased real estate and personal property tax revenue the project generates. Caroline County CleanArc performance agreement | The classification rate applies by ordinance without an application. Caroline County alternative data center rate Va. Code 58.1-3506(A)(43) The CleanArc grant payments are contractual and specific to that project. The agreement treats the three buildings as the full project scope for the revenue and incentive estimates. It allows up to two more buildings on adjacent parcels only if the Board approves. Caroline County CleanArc performance agreement Caroline and Spotsylvania also share tax revenue from a project spanning their boundary on a 57.5 percent Caroline and 42.5 percent Spotsylvania basis for a fixed term. Caroline County revenue sharing agenda item | Both pieces are live. The Board of Supervisors approved the CleanArc performance agreement at its August 12, 2025 regular meeting. The agreement runs until the annual grant payments are fully paid or December 31, 2050, whichever comes first. Caroline County CleanArc performance agreement The 1 dollar and 25 cent classification rate is current too. The survey prepared for the Spotsylvania County fiscal year 2027 recommended budget still lists Caroline at that figure. Spotsylvania County FY2027 budget question response |
Chesterfield County
The lowest data center equipment rate in Virginia and the most aggressive local package in the state. Chesterfield cut its effective rate by 86.6 percent in 2019 and has since locked that rate in through thirty year agreements. Chesterfield Business News Chesterfield incentive agreements Google is building three campuses totaling about 1,500 acres in a roughly 9 billion dollar investment. VPM, June 22, 2026
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Twenty four cent data center equipment rate with thirty year lock in agreements | Data center equipment is taxed at 24 cents per 100 dollars of assessed value. General computer equipment and furniture, fixtures and equipment are both at 3 dollars and 25 cents, and machinery and tools at 1 dollar. The data center class is worth roughly a 93 percent discount against the ordinary equipment rate. Chesterfield County business tax rates The 2019 change dropped data centers from an effective 1 dollar and 80 cents to 24 cents. The county's business news outlet put that reduction at 86.6 percent. Chesterfield Business News The Board of Supervisors approved incentive agreements that cap the data center equipment tax at the 24 cent rate for thirty years for the covered projects. If a future board raises the countywide rate, the county pays the difference back to them as annual grants. Chesterfield incentive agreements | The 24 cent rate is a general classification available to any qualifying AI data center in the county. Chesterfield County business tax rates Va. Code 58.1-3506(A)(43) The thirty year cap is contractual and applies only to the specific projects covered by an approved incentive agreement. A new entrant would need its own agreement to get the same protection. The agreements have drawn heavy local criticism, including over nondisclosure agreements that kept project details from residents. Chesterfield incentive agreements VPM, June 22, 2026 Google's three campuses are 1) Project Peanut, a 300 plus acre site with three buildings at 2100 Bermuda Hundred Road in Chester that was announced in August 2025 and is under construction, 2) Project Skye, an 848 acre site with four buildings at 4201 Moseley Road, and 3) Project Loch, a 334 acre site with three buildings at 750 Watkins Centre Parkway in Midlothian. WWBT, July 15, 2026 Google has applications before the Army Corps of Engineers under the Clean Water Act for both Loch and Skye. VPM, June 22, 2026 Separately, Google signed a power purchase agreement on June 30, 2025 for 200 megawatts from the first Commonwealth Fusion Systems ARC plant. That plant is planned for Chesterfield County and expected to reach the grid in the early 2030s. Commonwealth Fusion Systems American Public Power Association | Live. The published business tax rate table still shows data centers at 24 cents per 100 dollars alongside the 2026 business tangible personal property return. Chesterfield County business tax rates The survey prepared for the Spotsylvania County fiscal year 2027 recommended budget lists the same figure. That is the lowest of the fourteen localities in the survey. Spotsylvania County FY2027 budget question response |
City of Alexandria
An independent city with a small legacy data and network facility base and no discounted data center class. City of Alexandria business personal property tax
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| No local data center incentive identified | None. The city taxes business personal property at 4 dollars and 75 cents per 100 dollars of assessed value and machinery and tools at 4 dollars and 50 cents. Computers are assessed at 65 percent of purchase cost the first year, then 45, 30, 20, and 5 percent thereafter. City of Alexandria business personal property tax Spotsylvania County's FY2027 survey lists the same 4 dollar and 75 cent figure for data center equipment. That is the second highest in the survey. Spotsylvania County FY2027 budget question response | There is no separate reduced data center class in the city's published schedule as of July 19, 2026. City of Alexandria business personal property tax The state statute that would let the city create a lower taxed class for AI data center computer equipment is Va. Code 58.1-3506(A)(43). As an independent city Alexandria sets its own rates entirely apart from any surrounding county. | No local incentive is in effect. The published business personal property page for the 2026 filing year lists only the 4 dollar and 75 cent general rate and the 4 dollar and 50 cent machinery and tools rate. It shows no data center class. City of Alexandria business personal property tax |
City of Fredericksburg
An independent city inside the Fredericksburg regional cluster with its own rates set apart from Spotsylvania and Stafford. It sits at the same regional floor on data center equipment. City of Fredericksburg news release, April 24, 2019
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Reduced data center equipment classification | Data center computer equipment and peripherals are taxed at 1 dollar and 25 cents per 100 dollars of assessed value. That matches Spotsylvania and Stafford. The City Council took the first of two required votes on that rate on April 23, 2019. The change cut it from the general business personal property rate. City of Fredericksburg news release, April 24, 2019 Spotsylvania County's FY2027 survey and local reporting both place the city at the regional floor. Spotsylvania County FY2027 budget question response WJLA | The reduced rate is set by city ordinance under the state classification statute. Va. Code 58.1-3506(A)(43) City of Fredericksburg news release, April 24, 2019 As an independent city Fredericksburg sets rates entirely separately from the surrounding counties. A site just across the city line can face a different schedule. | Live. The city still publishes ordinance 19-17 as the source of the 1 dollar and 25 cent rate on all computer equipment and peripherals used in data centers. City of Fredericksburg data centers The survey prepared for the Spotsylvania County fiscal year 2027 recommended budget still lists Fredericksburg at that rate. Spotsylvania County FY2027 budget question response |
City of Manassas
An independent city inside the Northern Virginia cluster with its own tax rates entirely separate from Prince William County. Its first AI data center, a facility on Godwin Drive, is operational. Manassas has raised its computer equipment rate repeatedly and adopted a separate higher data center class at 4 dollars and 50 cents on June 8, 2026. City of Manassas tax rate schedule Prince William Times Ordinance O-2026-967
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| No local data center incentive identified | None, and the rate runs the other way. Manassas taxes computer equipment and peripherals used in a data center at 4 dollars and 50 cents per 100 dollars of assessed value. That is a class of its own and the top rate on the schedule. Other business computer equipment stays at 2 dollars and 15 cents and business personal property at 3 dollars and 60 cents. Ordinance O-2026-967, personal property tax rates for tax year 2026 That 2 dollar and 15 cent figure was itself a large increase adopted in a prior budget. It went up from 1 dollar and 25 cents. Prince William Times, April 2024 Prince William Times The FY2027 real estate rate is 1 dollar and 5 cents plus a 19 cent fire and rescue levy, for a total of 1 dollar and 24 cents. Machinery and tools is 2 dollars and 10 cents generally and 76.2 cents for semiconductor manufacturing. Combined sales tax in the city is 6 percent. City of Manassas budget City of Manassas tax rate schedule | The city council advertised a separate data center rate and then adopted one. Ordinance O-2026-967 was enacted on June 8, 2026 and took effect the same day. It sets computer equipment and peripherals used in a data center at 4 dollars and 50 cents for tax year 2026, and it ties the class to Va. Code 58.1-3506(A)(43). Ordinance O-2026-967 Va. Code 58.1-3506(A)(43) The Commissioner of the Revenue rate schedule page had not picked the new class up as of August 2, 2026, so the ordinance is the document to check. City of Manassas tax rate schedule One quirk worth knowing is that the city's first operational AI data center paid no computer and peripherals tax in its first year. The servers inside were owned by banks. Bank owned property is exempt from local tangible personal property tax in Virginia. Prince William Times In a colocation building the tax follows who owns the equipment, not who owns the shell. Some parcels also sit inside the Owens Brooke special taxing district. City of Manassas tax rate schedule | A separate data center class is in effect at 4 dollars and 50 cents per 100 dollars of assessed value for tax year 2026. Ordinance O-2026-967 The published tax rate schedule has not caught up. It still lists only the 3 dollar and 60 cent rate on furniture, fixtures, and equipment and the 2 dollar and 15 cent rate on computer equipment. City of Manassas tax rate schedule |
City of Norton
The only independent city in the Lonesome Pine Regional Industrial Facilities Authority group, participating in the regional 24 cent data center equipment rate. Energy DELTA Lab
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Lonesome Pine regional data center equipment classification | Participates in the regional data center equipment tax rate of 24 cents per 100 dollars of assessed value with a favorable depreciation schedule. Energy DELTA Lab That rate was still in force as of March 5, 2026. Cardinal News, March 5, 2026 | The Norton city council adopted the classification on February 16, 2021 under the February 1, 2021 regional memorandum of understanding. Energy DELTA Lab Va. Code 58.1-3506(A)(43) As an independent city Norton sets its rates apart from Wise County, which surrounds it. Norton readopts the rate annually, though the rate held through early 2026. Cardinal News, March 5, 2026 | Live through the fiscal year that ended June 30, 2026. The city budget ordinance for that year levied a fee of 24 cents on each 100 dollars of assessed value of computer equipment or enabling software used in a data center. That fee applies in lieu of any other personal property tax on the property. The ordinance left the rate unchanged from the year before. City of Norton council meeting packet, June 17, 2025 Norton relevies the rate in each annual budget ordinance. The fiscal year 2027 ordinance was not online as of July 2026, so confirm the current figure with the Commissioner of the Revenue. |
Dickenson County
A Lonesome Pine Regional Industrial Facilities Authority member locality in the Southwest Virginia coalfields participating in the regional 24 cent data center equipment rate. Energy DELTA Lab
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Lonesome Pine regional data center equipment classification | Participates in the regional data center equipment tax rate of 24 cents per 100 dollars of assessed value with a favorable depreciation schedule. Energy DELTA Lab That rate was still in force as of March 5, 2026. Cardinal News, March 5, 2026 | Dickenson County's governing body adopted the classification on February 23, 2021 under the February 1, 2021 regional memorandum of understanding. Energy DELTA Lab Va. Code 58.1-3506(A)(43) The rate held through early 2026, though the county readopts annually. Cardinal News, March 5, 2026 | Still in place by regional agreement, though the county's own adopted levy does not itemize it. Dickenson County last set rates on April 7, 2026, when the Board of Supervisors adopted the fiscal year 2026/2027 tax levies by a 5 to 0 vote. Dickenson County Board of Supervisors minutes, April 7, 2026 The county administrator told the board there were no proposed changes from the current fiscal year. Dickenson County Board of Supervisors minutes, April 7, 2026 That schedule covers 1) real estate, 2) mobile homes, 3) merchant's capital, 4) personal property, and 5) machinery and tools, with no separate AI data center line. Dickenson County Board of Supervisors minutes, April 7, 2026 Reporting from March 5, 2026 still placed the regional rate of 24 cents per 100 dollars of assessed value in Dickenson County. Cardinal News, March 5, 2026 Confirm the rate with the Dickenson County Commissioner of the Revenue before relying on it. |
Fairfax County
A large and mature market anchored around Reston, Herndon, and the Dulles corridor. Fairfax has never adopted a discounted data center class. Computer equipment is taxed at the ordinary business rate, which is among the highest headline equipment rates in Northern Virginia. Fairfax County business tangible personal property WJLA
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| No local data center incentive identified | None. Business tangible personal property, which includes computer equipment, is taxed at 4 dollars and 57 cents per 100 dollars of assessed value with no separate data center classification. Fairfax County business tangible personal property The county Economic Development Authority publishes a residential real property rate of 1 dollar and 12 and one half cents per 100 dollars. The county's own table lists a 1 dollar and 12 cent base rate for tax year 2026. Fairfax County Economic Development Authority tax summary Fairfax County real estate tax rates Additional district levies such as the Route 28 Improvement District and the Phase 1 Dulles Rail Transportation Improvement District hit commercial property in the exact corridors where AI data centers cluster. Fairfax County Economic Development Authority tax summary | State level incentives still apply. A Fairfax AI data center that signs a memorandum of understanding with the Virginia Economic Development Partnership Authority and clears the 150 million dollar and 50 job thresholds gets the state sales and use tax exemption like anyone else. VEDP Data Center Retail Sales and Use Tax Exemption Machinery and tools is taxed on a separate schedule and does not reach data center computer equipment. Property inside the towns of Herndon, Vienna, and Clifton is still reported to the county. Fairfax County business tangible personal property The state statute that would let the county create a lower taxed class for AI data center computer equipment is Va. Code 58.1-3506(A)(43). | No local incentive is in effect. The current published schedule taxes business tangible personal property and computer equipment alike at 4 dollars and 57 cents per 100 dollars. It has no data center class. Fairfax County business tangible personal property |
Fauquier County
A Piedmont county on the western edge of the Northern Virginia cluster with strong rural preservation politics. It taxes data center equipment at the same 4 dollar and 15 cent rate Loudoun uses, so it does not compete on tax. Fauquier County current tax rates WJLA
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| No local data center incentive identified | There is a separate data center equipment line, but no discount in it. The county's published schedule lists data center equipment at 4 dollars and 15 cents per 100 dollars of assessed value. Machinery and tools is at 3 dollars and 45 cents. Fauquier County current tax rates Spotsylvania County's FY2027 survey lists the same 4 dollar and 15 cent figure. Spotsylvania County FY2027 budget question response | The classification exists under the state statute. Fauquier taxes data center equipment at 4 dollars and 15 cents per 100 dollars of assessed value against a 3 dollar and 45 cent general tangible personal property rate. The separate class is a higher rate here, not a break. Va. Code 58.1-3506(A)(43) Fauquier County current tax rates State level incentives still apply to a qualifying operator. VEDP Data Center Retail Sales and Use Tax Exemption | Live but with no discount in it. The separate data center equipment line is still set at 4 dollars and 15 cents per 100 dollars. The survey prepared for the Spotsylvania County fiscal year 2027 recommended budget lists Fauquier at that figure. Spotsylvania County FY2027 budget question response |
Hanover County
A Richmond area county with one of the lowest data center equipment rates in the state, a rate that has never collected a dollar because no facility is operating yet, and an active fight about whether to raise it. Hanover County announcement Richmond BizSense Anyone looking at central Virginia should watch this one closely.
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Forty five cent data center equipment rate under an extended review | Qualifying data center equipment is taxed at 45 cents per 100 dollars of assessed value. That is among the lowest rates in Virginia and well below Henrico's 2 dollar and 60 cent rate. The class was created in 2023. The county has collected no revenue under it, because as of spring 2026 there were no operating AI data centers in Hanover. Richmond BizSense Hanover County announcement | This rate is not locked in and is actively contested. The Board of Supervisors pulled the data center rate out of the FY2027 budget entirely when it adopted that budget on April 8, 2026, so it could reevaluate the rate. It scheduled a June vote that could have reinstated the rate as high as 3 dollars per 100 dollars. Richmond BizSense WRIC At the June 24, 2026 meeting the Board voted unanimously to keep 45 cents and referred the question to committee. It sent the rate to the Finance Committee for a statewide comparison. It sent a data center policy and potential zoning ordinance to the Community Development Committee. NBC12, June 25, 2026 Hanover County announcement The county says that work should take more than eighteen months and that a moratorium is not a legal option under Virginia law. Assume the rate can move once the review ends. Hanover County announcement Pending and approved projects include 1) a 1,200 acre Tract campus approved in 2024 and under construction near Ashland, 2) a separate Tract proposal of about 430 acres on Mountain Road, and 3) an LS Power proposal of about 200 acres on Old Ridge Road. Richmond BizSense The separate class Hanover created exists under Va. Code 58.1-3506(A)(43). | Live at 45 cents and under active review. The Board of Supervisors voted unanimously on June 24, 2026 to keep the rate and sent it to the Finance Committee for a statewide comparison. The county says the review should take more than eighteen months. Hanover County announcement |
Henrico County
The Richmond area anchor, home to White Oak Technology Park in Sandston with Meta, QTS, and Iron Mountain. Henrico built the market by setting a 40 cent data center rate that helped land Meta, then raised it to 2 dollars and 60 cents once the cluster was established, and it closed by right development. Henrico County approved tax rates Richmond BizSense The Richmonder WTVR, June 10, 2025
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Reduced data center classification for computers and peripherals | A separate class with a lower rate than the Northern Virginia jurisdictions. Computers and peripherals used in a data center are taxed at 2 dollars and 60 cents per 100 dollars of assessed value. The general business personal property rate is 3 dollars and 35 cents, machinery and tools 30 cents, and real estate 83 cents. Henrico County approved tax rates The Board of Supervisors cut the rate to 40 cents from 3 dollars and 50 cents in 2017, the lowest in the state at the time. Meta's Henrico data center sits in White Oak Technology Park. The board raised the rate to 2 dollars and 60 cents in 2025. The Richmonder Richmond BizSense | The reduced rate is a rate classification rather than a negotiated deal, so it applies automatically to qualifying equipment with no application. Henrico County business personal property tax Va. Code 58.1-3506(A)(43) Zoning is now the constraint. A new data center in Henrico needs a provisional use permit. That means public input and final approval from the Board of Supervisors. WTVR, June 10, 2025 Richmond BizSense Some real estate in the county also carries additional streetlight district and community development authority levies. Henrico County approved tax rates | Live at 2 dollars and 60 cents. The approved tax rate schedule still carries that rate for computers and peripherals used in a data center with at least one megawatt of electrical power capacity. Henrico County approved tax rates |
King George County
A small Rappahannock river county on the eastern edge of the Fredericksburg corridor, sitting at the same 1 dollar and 25 cent regional floor on data center equipment. King George County Board report on the Amazon Data Services performance agreement
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Reduced data center equipment classification | Data center computer equipment and peripherals are taxed at 1 dollar and 25 cents per 100 dollars of assessed value. The county's own board report on the Amazon Data Services performance agreement treats that rate and its accompanying depreciation schedule as the existing terms for data center business personal property. Spotsylvania County's FY2027 survey lists the same figure. King George County Board report on the Amazon Data Services performance agreement Spotsylvania County FY2027 budget question response | The reduced rate is set by county ordinance under the state classification statute. Va. Code 58.1-3506(A)(43) The county's performance agreement with Amazon Data Services holds that rate and depreciation schedule in place for the covered project. That is a contractual protection a new entrant would not automatically get. King George County Board report on the Amazon Data Services performance agreement | Live at 1 dollar and 25 cents, though the county does not publish it. The survey prepared for the Spotsylvania County fiscal year 2027 recommended budget lists King George at that rate. Spotsylvania County FY2027 budget question response The county's own 2026 rate page shows only real estate, personal property, and machinery and tools. Confirm the classification with the Commissioner of the Revenue. King George County tax rates |
Lee County
A Lonesome Pine Regional Industrial Facilities Authority member locality in far Southwest Virginia participating in the regional 24 cent data center equipment rate. Energy DELTA Lab
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Lonesome Pine regional data center equipment classification | Participates in the regional data center equipment tax rate of 24 cents per 100 dollars of assessed value with a favorable depreciation schedule. Energy DELTA Lab That rate was still in force as of March 5, 2026. Cardinal News, March 5, 2026 | Lee County's governing body adopted the classification on February 16, 2021 under the February 1, 2021 regional memorandum of understanding. Energy DELTA Lab Va. Code 58.1-3506(A)(43) The rate held through early 2026, though the county readopts annually. Cardinal News, March 5, 2026 | Active. Lee County carries the rate in its code of ordinances rather than in an annual levy resolution. Lee County Code 15-10 Section 15-10 levies 24 cents per 100 dollars of assessed value on computer equipment or enabling software used in a data center. Lee County Code 15-10 The code makes that levy sit in lieu of any other personal property tax on the same equipment. Lee County Code 15-10 The section was adopted as Ordinance 21-00 on July 20, 2021 and is still in the current code. Lee County Code 15-10 One limit is worth reading closely. The section ties the rate to equipment meeting the requirements of Va. Code 58.1-609.3(18), the state sales and use tax exemption. Lee County Code 15-10 An AI data center that does not qualify for that state exemption may therefore fall outside the 24 cent local rate. |
Loudoun County
Data Center Alley, the densest concentration of AI data centers on earth and the reason Virginia is the world's largest market. Loudoun offers no abatement and no rate discount. It taxes data center computer equipment at its full general personal property rate and collects hundreds of millions of dollars a year from it. Loudoun County business personal property assessment schedules Loudoun County budget adoption release Data Center Frontier
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| General personal property rate applied to data center computer equipment | There is no discount. Computer equipment in a data center is taxed at 4 dollars and 15 cents per 100 dollars of assessed value, the same as the general personal property rate. The county says that rate holds for tax years 2026 and 2027. Loudoun County business personal property assessment schedules Cardinal News, March 5, 2026 The real property rate for tax year 2026 is 80 and one half cents per 100 dollars, unchanged from the prior year. Loudoun did cut the vehicle rate to 3 dollars and 9 cents for tax year 2026, with a planned further cut to 2 dollars and 94 cents for 2027. Households got relief and AI data centers did not. Loudoun County budget adoption release Loudoun County budget | Effective January 1, 2026 Loudoun lengthened its assessment schedule for computer equipment in a data center. Taxable value is now 60 percent of original capitalized cost for the most recent purchase year, then 45, 30, 15, and 10 percent, with 5 percent for the sixth year and older. The old schedule ran 50, 40, 30, 20, then 10 percent for everything older. The change raises the taxable base on newer equipment and lowers it on the oldest. Filers report total capitalized cost by year of acquisition for the current year plus the prior five years. Returns are due by March 1. Loudoun County business personal property assessment schedules Loudoun does keep a separate data center equipment class for assessment purposes under Va. Code 58.1-3506(A)(43) and simply sets the rate at the general level. | Live as a full price rate rather than an incentive. The lengthened assessment schedule for computer equipment in a data center took effect January 1, 2026. Loudoun County business personal property assessment schedules The survey prepared for the Spotsylvania County fiscal year 2027 recommended budget still lists Loudoun at 4 dollars and 15 cents. Spotsylvania County FY2027 budget question response |
Louisa County
A rural county between Richmond and Charlottesville that landed one of the largest AI data center commitments in Virginia by rezoning first. Amazon Web Services committed 11 billion dollars across two campuses, one next to the North Anna nuclear station and one near the Northeast Creek Reservoir. Engagement Louisa Louisa County announcement
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Technology Overlay District and a negotiated data center equipment rate | The county's published rate schedule, effective January 1, 2026, shows business personal property and machinery and tools at 1 dollar and 90 cents per 100 dollars of assessed value with no separate data center line. Louisa County tax rates Under the Amazon Web Services performance agreement the county committed to a reduced data center equipment rate of 1 dollar and 25 cents. That agreement also sets an accelerated depreciation schedule that starts at 50 percent of original cost and falls to 5 percent by the fifth year and after. The reduced rate lives in that contract rather than in the published schedule. Engagement Louisa County economic development staff projected about 25 million dollars a year of local revenue at full buildout. Roughly two thirds of that comes from business personal property and one third from real estate. Engagement Louisa On April 27, 2026 the Board of Supervisors cut the individual personal property rate by 15 percent, from 2 dollars and 43 cents to 2 dollars and 7 cents. It credited AI data center growth for making the cut possible. WRIC Louisa County tax rates | The county created a Technology Overlay District by zoning action to attract the projects. Engagement Louisa Louisa County announcement Amazon Web Services committed to 11 billion dollars of capital investment in the county by July 1, 2040. The commitment covers the Lake Anna Technology Campus of about 150 acres and the North Creek Technology Campus of about 1,400 acres, eleven buildings in total. Full buildout brings roughly 275 jobs over about fifteen years. Engagement Louisa The reduced equipment rate and depreciation schedule came out of a negotiated performance agreement rather than a general ordinance. A new entrant should not assume the same treatment. Engagement Louisa The state statute that lets a Virginia locality set a lower rate for AI data center computer equipment is Va. Code 58.1-3506(A)(43). | The published schedule is live and the reduced rate is contractual. The rate schedule effective January 1, 2026 lists business personal property at 1 dollar and 90 cents with no data center line. The 1 dollar and 25 cent rate exists only inside the Amazon Web Services performance agreement. Louisa County tax rates |
Mecklenburg County
The rural Southside county in Boydton where Microsoft built its Virginia campus, and the kind of county the distressed locality thresholds were written to help. It has one of the lowest data center equipment rates in Virginia. Mecklenburg County tax rates Microsoft Boydton fact sheet
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Reduced data center computer and peripherals rate | Data center computers and peripherals are taxed at 66 cents per 100 dollars of assessed value. Ordinary business personal property and non data center computer equipment fall in the county's Personal Property II class at 3 dollars and 26 cents. The data center class is worth roughly an 80 percent discount. Vehicles and similar property in Personal Property I are at 2 dollars and 46 cents. Machinery and tools and rolling stock also sit at 66 cents. Real property is 31 cents. Mecklenburg County tax rates Microsoft runs the anchor AI data center campuses in the region. Its Boydton fact sheet reports more than 505 full time employees and contractors across its Southern Virginia campuses. The same fact sheet reports an average of about 500 construction jobs a year since 2014. Microsoft Boydton datacenter fact sheet | The rate is set by ordinance and applies to qualifying equipment without an application. Va. Code 58.1-3506(A)(43) Mecklenburg County tax rates Mecklenburg is also the type of locality the state distressed locality thresholds were designed to reach. If its unemployment and poverty rates both run above the statewide averages it is a distressed locality. That designation drops the state exemption thresholds to 70 million dollars of capital investment and 10 new jobs. Va. Code 58.1-609.3(18) No agency publishes a current list of qualifying localities. An operator should confirm the current year designation with the Virginia Economic Development Partnership Authority rather than assume it. VEDP Data Center Retail Sales and Use Tax Exemption | Live at 66 cents. The published rate table, headed 2026 and 2027 local tax rates, still lists data center computers and peripherals at 66 cents per 100 dollars. Mecklenburg County tax rates |
Pittsylvania County
A Southside county that became the clearest example of local politics beating a low tax rate. Residents defeated one of the largest gas powered AI data center proposals in the country here. Daily Yonder Bacon’s Rebellion
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| No confirmed reduced data center classification, and a defeated megaproject | The county does not publish a business tangible or data center equipment rate schedule online. Its Commissioner of the Revenue page covers only the 9 dollar per 100 dollar individual personal property rate. As of July 19, 2026 there is no public evidence of a separate reduced data center class here. Pittsylvania County personal property tax The county does sit inside the Southside region, where the state distressed locality thresholds of 70 million dollars and 10 jobs are most likely to be available. The state sales and use tax exemption is therefore the main lever rather than a local abatement. Va. Code 58.1-609.3(18) | Balico is a Herndon based developer. It proposed a roughly 2,200 acre campus with 84 AI data center buildings and a 3,500 megawatt natural gas power plant, which would have been among the largest in the country. Organized local opposition defeated it before the Board of Supervisors. Daily Yonder Bacon's Rebellion Anyone evaluating a Pittsylvania site should treat land use approval, not tax rate, as the binding constraint. They should also confirm the county's current equipment classification directly with the Commissioner of the Revenue. Pittsylvania County personal property tax The state statute that would let the county create a reduced class for AI data center computer equipment is Va. Code 58.1-3506(A)(43). | No local data center class is documented. The county's personal property page shows a single 9 dollar per 100 dollar rate for fiscal year 2026. It shows no data center or business equipment classification. Pittsylvania County personal property tax |
Prince William County
The second largest Northern Virginia market and the one that turned hostile fastest. Prince William has raised its data center equipment rate twice in three years, has hit the ceiling state law allows, and is reconsidering the by right zoning overlay that made it easy to build there. It offers no local incentive. Prince William County FY2027 budget adoption Prince William County overlay district review
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Data center computer equipment rate and the Data Center Opportunity Zone Overlay District | No incentive, and a rising cost. On April 21, 2026 the Board of County Supervisors adopted the FY2027 budget. It raised the personal property rate on computer equipment and peripherals from 4 dollars and 15 cents to 4 dollars and 50 cents per 100 dollars. It cut the real estate rate at the same time. Prince William County FY2027 budget adoption Prince William County tax rates The equipment rate had already gone from 2 dollars and 15 cents to 3 dollars and 70 cents in the prior budget cycle. State law caps the business equipment rate at the general personal property rate. The county is now at or near its ceiling. Va. Code 58.1-3506(A)(43) The board first voted to keep the extra computer equipment revenue out of the schools revenue sharing formula. It then reversed and agreed to share that revenue with the school division as it always has. Patch, April 22, 2026 The county's own 2024 revenue report shows AI data centers produced 23.19 million dollars of the 45.7 million dollars of business equipment, furniture and fixtures tax revenue that year. The rate that year was 3 dollars and 70 cents. Prince William County 2024 data center revenue report | The remaining local advantage is zoning, not tax. The Data Center Opportunity Zone Overlay District was created in 2016. It lets data centers be approved by right in areas with existing power, water, and sewer capacity. The county has been reworking it since 2021. Prince William County overlay district review In spring 2026 the Board told the Planning Office to pause work on the pending zoning text amendment and postpone the scheduled Planning Commission hearing, so the draft ordinance could be refined. The draft amendment would shrink the overlay, close it to future expansion, and require a special use permit for new data centers outside it. Prince William County overlay district review Anyone underwriting a Prince William site should assume discretionary review. | Live as a cost rather than an incentive. The published 2026 rate table taxes computer equipment and peripherals used in a data center at 4 dollars and 50 cents per 100 dollars. That is the same as the general classification of tangible personal property. Prince William County tax rates |
Scott County
A Lonesome Pine Regional Industrial Facilities Authority member locality in Southwest Virginia participating in the regional 24 cent data center equipment rate. Energy DELTA Lab
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Lonesome Pine regional data center equipment classification | Participates in the regional data center equipment tax rate of 24 cents per 100 dollars of assessed value with a favorable depreciation schedule. The other participants are Dickenson County, Lee County, the City of Norton, and Wise County. Energy DELTA Lab That rate was still in force across all five as of March 5, 2026. Cardinal News, March 5, 2026 | Scott County's governing body adopted the new property tax classification on February 3, 2021 under the February 1, 2021 regional memorandum of understanding. Formal adoption came through the annual budget process. Energy DELTA Lab Va. Code 58.1-3506(A)(43) The rate held through early 2026, though each locality still readopts annually. Cardinal News, March 5, 2026 | Active. The county's published 2026 tax levy rates still carry a data center tax line at 24 cents. Scott County 2026 Tax Levy Rates The sheet lists bare figures and never states a denominator. The 24 cents is a rate per 100 dollars of assessed value. It is the uniform data center equipment rate the Lonesome Pine Regional Industrial Facilities Authority localities, Scott County among them, agreed to in 2021. Lonesome Pine RIFA localities announce a 24 cent data center equipment rate, March 2, 2021 Cardinal News still reported 24 cents for those localities in March 2026. Cardinal News on Southwest Virginia data center tax rates, March 5, 2026 The same sheet sets real estate at 75 cents and adds a 4 cent fire tax. Scott County 2026 Tax Levy Rates Those two figures match what the Board of Supervisors advertised for fiscal year 2027 at its June 24, 2026 public hearing. Scott County notice of public hearing on tax levies, June 24, 2026 That dates the levy sheet to the current fiscal year. |
Spotsylvania County
One of the Fredericksburg area counties absorbing projects that Loudoun and Prince William are turning away. It sits at the regional floor of 1 dollar and 25 cents on data center equipment and has drawn organized resident opposition because of it. Spotsylvania County tax rates WJLA
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Reduced data center equipment classification | Computer equipment and peripherals used in a data center are taxed at 1 dollar and 25 cents per 100 dollars of assessed value, effective January 1, 2020 and unchanged since. Furniture and fixtures are at 4 dollars and 55 cents and machinery and tools at 1 dollar and 90 cents. The data center class is worth roughly a 73 percent discount against the ordinary equipment rate. Spotsylvania County tax rates The county's 2026 depreciation schedule taxes 50 percent of original cost in the most recent year, then 45, 40, 30, and 20 percent for 2021 and prior. Spotsylvania County tax rates | The reduced rate is set by ordinance under the state classification statute and applies to qualifying equipment without a separate application. Va. Code 58.1-3506(A)(43) Spotsylvania County tax rates The county has also entered a joint arrangement with Caroline County. Under it the two share tax revenue from a project spanning their line, on a 57.5 percent Caroline and 42.5 percent Spotsylvania basis for a fixed term. Caroline County revenue sharing agenda item Local opposition to the low rate is organized and vocal, so the rate carries political risk. WJLA Spotsylvania County FY2027 budget question response | Live at 1 dollar and 25 cents. The published table carries that rate for 2021 through 2026. It notes that the Board of Supervisors sets tax rates in mid April each year. Spotsylvania County tax rates |
Stafford County
A Fredericksburg area county absorbing projects turned away farther north. Its data center rate is one of the lowest in Northern Virginia and sits far below its own general business equipment rate, which is exactly why local opposition is growing. Stafford County tax rates WJLA Potomac Local News, July 2, 2026
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Reduced data center equipment classification | Computer equipment and peripherals used in a data center are taxed at 1 dollar and 25 cents per 100 dollars of assessed valuation. The general tangible personal property rate is 5 dollars and 72 cents, and that same rate applies to programmable computer equipment used in a trade or business outside a data center. The data center class is worth about a 78 percent discount. Real estate is 96.75 cents per 100 dollars plus a countywide fire and emergency medical services levy of 1.4 cents. Machinery and tools is effectively zero at one hundredth of a cent. Stafford County tax rates | The reduced rate is set by county ordinance under the state classification statute and applies to qualifying equipment without a separate application. Va. Code 58.1-3506(A)(43) Stafford County tax rates Stafford, Spotsylvania, the City of Fredericksburg, King George, and Caroline all sit at the same 1 dollar and 25 cent regional floor. Spotsylvania County FY2027 budget question response Stafford's low rate has drawn public criticism. A Loudoun County supervisor urged Stafford and Spotsylvania to raise theirs. The rate carries political risk going forward. WJLA Some parcels also sit inside special service districts such as Garrisonville Road. Stafford County tax rates | Live at 1 dollar and 25 cents. The treasurer's rate schedule, updated May 4, 2026, still lists that rate for computer equipment and peripherals used in a data center. Stafford County tax rates |
Wise County
One of five Southwest Virginia localities that acted together through the Lonesome Pine Regional Industrial Facilities Authority to adopt a single low data center equipment rate and share the revenue from regional projects. Energy DELTA Lab
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Lonesome Pine regional data center equipment classification | The Lonesome Pine Regional Industrial Facilities Authority member localities agreed to a data center equipment tax rate of 24 cents per 100 dollars of assessed value. The depreciation schedule that goes with it is built around the capital cost of servers and how often they are replaced. The arrangement also opens revenue sharing across the member localities for regional projects. Energy DELTA Lab That rate was still in force in Dickenson, Lee, Scott, and Wise counties and the City of Norton as of March 5, 2026. It matches the lowest rate in the Commonwealth. Cardinal News, March 5, 2026 | The member localities and their Commissioners of the Revenue signed a memorandum of understanding on February 1, 2021. Each governing body then adopted the classification separately, Wise on February 18, 2021. Formal adoption was to follow through the annual budget process. The rate came out of the InvestSWVA Project Oasis study. Energy DELTA Lab Va. Code 58.1-3506(A)(43) Each locality still sets its rate annually. Confirm the current adopted depreciation schedule with the county, even though the 24 cent rate held through early 2026. Cardinal News, March 5, 2026 | Live at 24 cents. The Wise County Economic Development office still publishes the regionally approved 24 cent per 100 dollar data center equipment rate with its favorable depreciation schedule as a current incentive. Wise County Economic Development |
Washington runs two sales and use tax exemptions that AI data centers use, one for rural counties under RCW 82.08.986 and one for the three counties with more than 800,000 people under RCW 82.08.9861 Department of Revenue notice on nonrural data centers, and both cover server equipment, installation labor and power infrastructure. A 2026 law signed on April 1, 2026 closed the refurbishment track and pulled replacement server equipment out of both programs as of July 1, 2026, so the break now reaches new construction only. ESSB 6231, Chapter 266, Laws of 2026 Department of Revenue special notice
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Rural county data center sales and use tax exemption | A full exemption from the 6.5 percent state retail sales and use tax and from the local sales and use tax. The state, all counties and all cities levy the tax, and the local rate varies with the location of the site. House Bill Report on ESSB 6231 The exemption covers 1) original server equipment, 2) the labor and services to install it, 3) eligible power infrastructure, and 4) the labor, materials and equipment to construct, install, repair, alter or improve that power infrastructure. RCW 82.08.986 Eligible power infrastructure means the fixtures and equipment needed to transform, distribute or manage the electricity that runs the servers. That includes generators, wiring, cogeneration equipment, switches and batteries. The statute expressly excludes substations. ESSB 6231 enrolled text Replacement server equipment stopped qualifying on July 1, 2026. Department of Revenue special notice | The AI data center must sit in a rural county. The statute defines that term by cross reference to RCW 82.14.370. It measures the county at the moment the exemption application is received. ESSB 6231 enrolled text The Office of Financial Management publishes the county roster. As of April 1, 2026 it names 30 rural counties. A rural county is 1) a county with fewer than 100 people per square mile, 2) a county smaller than 225 square miles, or 3) a county at 100 or more people per square mile with no city over 45,000 people. Grant, Douglas, Chelan, Walla Walla, Klickitat, Kittitas, Yakima and Franklin are all on that list. Benton and Spokane are not. Office of Financial Management rural county list The facility must be one or more buildings with a combined 100,000 square feet. At least 20,000 square feet of that must be dedicated to housing working servers. It must also have 1) uninterruptible power supplies or generator backup, 2) sophisticated fire suppression and prevention systems, and 3) enhanced physical security such as permanent guards, restricted access, video camera surveillance or biometric entry. Construction must have commenced inside one of three statutory windows. The operative one runs after June 30, 2015 and before July 1, 2035. ESSB 6231 enrolled text The owner applies to the Department of Revenue for an exemption certificate. Department of Revenue notice Within six years of the certificate, net employment at the site must rise by 35 family wage positions. If three family wage positions for each 20,000 square feet of newly dedicated server space is a lower number, that lower number applies. The business must then hold that level while the certificate is valid. For certificates issued on or after June 9, 2022, a family wage position is a new permanent position requiring 40 hours of weekly work on a full time basis. It must pay at least 125 percent of the per capita personal income of the county as published by the Employment Security Department. It must also be entitled to employer provided health insurance. The older 150 percent figure applies only to certificates issued before June 9, 2022. Tenants count only the space they occupy. RCW 82.08.986 A newly constructed AI data center must certify within three years of being placed in service that it has attained one of the listed green building standards. Those standards include BREEAM, Energy Star, Envision, ISO 50001, LEED, Green Globes, UL 3223, or another reasonable standard the department approves. There is no cap on certificates for new construction. Missing the jobs test or the building certification can make all previously exempted tax immediately due. It also cancels the certificate and adds a 10 percent penalty. The department may grant exceptions where the failure is due to causes beyond the taxpayer's control such as a declared recession, pandemic or natural disaster. Certificates may be transferred only with the department's prior written consent. The transferee must be a related or successor entity that agrees to the terms. An Annual Tax Performance Report is due to the Department of Revenue by May 31 each year after a year in which the exemption is claimed. The report must identify construction firm names and employment levels. ESSB 6231 enrolled text Department of Revenue notice One combination question comes up often and the answer is no bar. I read the full enrolled text of both the sales tax section and the use tax section. Neither one prevents a business that takes the sales and use tax deferral under chapter 82.60 RCW from also claiming this exemption. The word deferral does not appear in either section. ESSB 6231 enrolled text RCW 82.12.986 | Active for new construction. No new certificates may be issued on or after July 1, 2036. All exemptions under the section expire July 1, 2048. The refurbishment track is gone. The statute bars new refurbishment certificates on or after July 1, 2026. It expires the refurbishment exemption itself on that same date. A refurbishment project that was mid stream when the law took effect was not grandfathered. Its certificate lapsed with the rest. Replacement server equipment is also out. ESSB 6231, Chapter 266, Laws of 2026 Department of Revenue special notice The House passed ESSB 6231 on March 12, 2026 by a vote of 51 to 46. The bill began as agency request legislation from the Office of Financial Management that was built into the Governor's budget. House Bill Report on ESSB 6231 |
| Urban county data center sales and use tax exemption | The same state and local sales and use tax exemption, but for an AI data center in a county with a population over 800,000. It covers 1) eligible server equipment, 2) installation labor, 3) eligible power infrastructure, and 4) the labor, material and equipment to build or improve it. The statute fixes that population test to the April 1, 2021 Office of Financial Management population estimates. That means King, Pierce and Snohomish counties. RCW 82.08.9861 Department of Revenue notice Replacement server equipment stopped qualifying on July 1, 2026. Department of Revenue special notice | The facility needs at least 20,000 square feet dedicated to housing working servers. It also needs the same backup power, fire suppression and physical security features as the rural program. An owner must show a minimum of 1.5 megawatts of available power. To prove it the owner must supply requests for proposals, pricing offered and marketing materials. A tenant must contract for at least 150 kilowatts of electrical capacity for server and computer equipment. Department of Revenue notice RCW 82.08.9861 Within six years the business or tenant must show net employment rose by three family wage positions for each 20,000 square feet of newly dedicated server space. A newly constructed AI data center must certify a listed green building standard within three years of being placed in service. Missing that deadline means repaying the exempted tax plus a 10 percent penalty. RCW 82.08.9861 The program is rationed. The Department of Revenue may approve only six applications in the first calendar year. It may approve six more in each of calendar years three through six. Applications are awarded first in time by the date the application is received. A certificate takes effect on the date the application is received. No refunds are authorized for purchases made earlier. The certificate expires two years after issuance unless construction has commenced. An Annual Tax Performance Report is due by May 31. ESSB 6231 enrolled text Department of Revenue notice The use tax half of the same break sits at RCW 82.12.9861. That section exempts eligible server equipment and eligible power infrastructure at an AI data center in a county with a population over 800,000. RCW 82.12.9861 | Active but closing. No new certificates may be issued on or after July 1, 2028. All exemptions under the section expire July 1, 2038. An AI data center refurbished on or after July 1, 2026 no longer qualifies as an eligible facility. Replacement server equipment is out. ESSB 6231, Chapter 266, Laws of 2026 Department of Revenue special notice |
| Local tax increment financing | General but usable. A city, town, county or port district may designate up to two increment areas. It may divert the growth in regular property tax inside the area to pay for public improvements. Those improvements include roads, water, sewer and utility infrastructure that serve the site. RCW 39.114.020 RCW 39.114.010 Department of Revenue notice on local tax increment financing This is not a cut to the developer's own tax bill. It redirects the new tax the project generates into the infrastructure the project needs. | The local government must adopt an ordinance designating the increment area and listing the public improvements it will fund. The area may not cover the whole jurisdiction. It is also subject to assessed value limits. Taxing districts inside the area may have to sign off before revenue is apportioned. RCW 39.114.020 Nothing in the statute is specific to AI data centers. A project has to be packaged as an ordinary economic development increment area. Department of Revenue notice on local tax increment financing | Active, and rewritten by E2SHB 2451, Chapter 141, Laws of 2026. That act carries an emergency clause. It took effect June 2, 2026 for any increment area created on or after that date. E2SHB 2451 E2SHB 2451 session law text Department of Revenue notice |
| Community Economic Revitalization Board | General but usable. Low interest loans and grants to local governments and ports for the public infrastructure a private business expansion needs. That includes water, sewer, roads, broadband and site preparation. Awards run from planning grants around 150,000 dollars up to construction awards in the millions. The money goes to the public partner, not to the company. Community Economic Revitalization Board RCW 43.160.030 RCW 43.160.020 RCW 43.160.060 | The applicant must be a local government, a port district or a federally recognized tribe, not the private company. The board wants a committed private partner, a job and revenue case, and local matching funds. Awards are made at board meetings through the year. Community Economic Revitalization Board RCW 43.160.060 | Active. Community Economic Revitalization Board |
| Economic development strategic reserve account | General but usable. A discretionary closing fund the Governor's office can tap to land or keep a project the state considers economically critical. It is used sparingly. There is no published formula and no entitlement. RCW 43.330.250 | Negotiated case by case through the Department of Commerce. RCW 43.330.250 No AI data center has been publicly identified as a recipient. Treat this as a possibility rather than a program a developer can count on. | Active. RCW 43.330.250 |
County and local programs
Chelan County
Malaga, just south of Wenatchee, hosts a Microsoft campus and a Sabey campus under construction. Columbia Basin coverage of Chelan County data centers Chelan is on the state rural county list, so the exemption applies. Office of Financial Management rural county list The local tools are infrastructure partnerships and market priced power contracts, not tax abatements. Chelan Douglas Regional Port Authority
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Chelan PUD large load framework | Access to surplus Columbia River hydropower, but at market based pricing rather than at a discount. On June 16, 2025 the commissioners approved the first contract executed under the framework. It was a short term deal for up to 18 megawatts of surplus hydropower for the Microsoft Malaga campus. The term ran only through December. Chelan PUD Wenatchee Business Journal Anyone relying on that contract should confirm what replaced it, because its term has run. | Large load customers choose among three options. They are 1) the PUD buys wholesale energy and resells it, 2) the customer identifies wholesale energy the PUD then buys and resells, or 3) the board negotiates a contract that may include surplus hydropower. Terms include early termination damages covering the PUD's power supply losses. Chelan PUD summary of contracts Chelan PUD | Live, with no published end date. Chelan PUD still posts the three option framework as its current process for evaluating large load requests. It has not paused or closed that process. Chelan PUD large loads page I could not find a public record of what replaced the short term hydropower supply that ran out at the end of December 2025. The PUD said the power source for 2026 through 2040 had not yet been determined. Chelan PUD |
| Malaga Cooling Water Facility and Jumpoff Ridge substation | A public private partnership through the Chelan Douglas Regional Port Authority that built cooling water infrastructure serving the Microsoft campus. The port retained 24.6 acres for future industrial development as part of the deal. Chelan Douglas Regional Port Authority Microsoft separately funded the Jumpoff Ridge substation in Malaga. That came as part of a reported 86.5 million dollar infrastructure investment supporting the campus. NCW Business As in Douglas County, the company paid for the infrastructure rather than receiving it. | Negotiated with the port authority. Not a posted program with published terms. Chelan Douglas Regional Port Authority | Built and closed out rather than open for new applicants. The port says it bought the land and led development on the Malaga Cooling Water Facility. The port also says Microsoft funded the whole thing. Chelan Douglas Regional Port Authority The Jumpoff Ridge substation is finished. Chelan PUD says Microsoft covered all costs for the utility to build it to serve the Malaga AI data center campus. Chelan PUD large loads page |
Douglas County
East Wenatchee is the second rural cluster, anchored by a large Microsoft campus and a Sabey facility. Douglas is on the state rural county list, so the exemption applies. Office of Financial Management rural county list No local tax incentive was identified, and none is likely, because Washington gives local governments no property tax abatement power to work with. Governor’s data center workgroup report The pattern here has been that the company pays for its own infrastructure and buys its own power.
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Douglas County PUD power delivery agreement with Microsoft | Transmission and distribution service only. The PUD built a substation at 875 Urban Industrial Way in East Wenatchee to serve the campus. The PUD says Microsoft paid for that substation in full. Data Center Dynamics Douglas County PUD power delivery agreement coverage Because Microsoft's expected 180 megawatt load is roughly twice all other power use in the county, the PUD does not supply the energy itself. Microsoft buys its power from a third party and pays the PUD only to deliver it. This is cost recovery rather than a subsidy. Douglas County PUD power delivery agreement coverage | A negotiated large load agreement running seven years from January 6, 2023 through December 31, 2029. The term was deliberately set to end before the 2030 Clean Energy Transformation Act deadlines. Microsoft also takes service under the PUD's Schedule 4 power delivery service, in place since May 1, 2021. That schedule applies to customers exceeding 1,000 kilovolt amperes for six consecutive months. Douglas County PUD power delivery agreement coverage | Active through December 31, 2029, which is the stated end of the seven year term. Douglas County PUD power delivery agreement coverage Rate Schedule 4 is still the live tariff behind it. The PUD applied that same schedule to a new interconnection and service agreement at its March 17, 2026 commission meeting. Douglas County PUD commission meeting report for March 17, 2026 |
Grant County
The center of gravity for Washington AI data centers. Quincy and Moses Lake host Microsoft, Sabey, Vantage, H5, NTT, CyrusOne and others, and Grant County Public Utility District counted nine data center customers in the Quincy industrial zone. Clearing Up on the Grant PUD load caps Grant is on the state rural county list, so the exemption under RCW 82.08.986 applies. Office of Financial Management rural county list There is no local tax incentive on top of that, and the Governor’s workgroup report explains why. Washington offers no property tax incentive at all and only the limited sales and use tax exemptions, which is why Quincy’s story is about the property tax the AI data centers pay rather than the property tax they avoid. About 65 percent of the property tax collected in Quincy comes from these facilities, and the city has used the growth in assessed value to fund a high school, a hospital, a fire station and a wastewater plant. Quincy Valley Post Register on the workgroup report The local story in 2026 turned restrictive rather than generous.
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Grant County PUD industrial power service | Historically the cheapest large industrial power in the country, drawn from the Priest Rapids and Wanapum dams on the Columbia. Government Technology Sabey markets its Quincy campus on hydropower at about 3.8 cents per kilowatt hour. Sabey Quincy campus This is a rate, not a subsidy. The discount is shrinking. | Service under the PUD rate schedules. Rate Schedule No. 17 sets the rate for the Evolving Industry class. That schedule carries a separate demand charge. It also carries a minimum billing floor tied to 75 percent of the customer's highest demand over the prior twelve months. Grant PUD Rate Schedule No. 17 Cryptocurrency is the only customer type Grant PUD now treats as an evolving industry. In May 2026 the PUD proposed a new high density compute rate that would cover data centers, cryptocurrency operations, cloud computing services and artificial intelligence. Columbia Basin coverage of the Grant PUD evolving industry class Columbia Basin coverage of the Grant PUD rate proposals | Live with no sunset date. Rate Schedule No. 17 is the current published tariff for the Evolving Industry class. Grant PUD states on its rates page that the new rates are in effect. Grant PUD rates and fees The numbers sit at the discretion of the elected commission and can move. They last moved on April 1, 2026. Grant PUD commission recap for January 27, 2026 |
| 2026 rate restructure and load caps | None. This is a cost increase and a growth limit. It is listed here because it changes the math on any new Quincy or Moses Lake project. Public Power Association | Effective April 1, 2026 the PUD unbundled its rates. It also ended preferential access to the lowest cost hydropower for large loads. Rates rose 1) about 10.6 percent for Evolving Industry, 2) about 8.1 percent for large industrial, and 3) about 8.5 percent for standard industrial. Roughly 9.5 percent annual increases are projected for non core customers over the next decade. Grant PUD 2026 rate action Separately, the PUD said in late March 2025 that it would impose load growth limits on AI data center customers in the Quincy industrial zone. PUD staff framed the caps as a transmission and reliability problem pending transmission expansion. The limits do not apply to residential, commercial or agricultural customers. Government Technology Public Power Association | Both halves are live now. Commissioners approved the unbundled rates on January 27, 2026. The new rates took effect April 1, 2026. Grant PUD commission recap for January 27, 2026 Grant PUD confirms on its own rates page that those rates are in effect. Grant PUD rates and fees The load growth limits were laid out for commissioners at the March 25, 2025 meeting. Grant PUD says the caps come off only when substation and transmission upgrades let its system safely carry the added demand. There is no fixed end date. Grant PUD commission recap for March 25, 2025 |
King County
A qualifying urban county under RCW 82.08.9861, home to the Westin Building carrier hotel and Sabey’s Intergate.East in Tukwila. The state exemption is available here through July 1, 2028 for new certificates, but the City of Seattle has moved the other way. Seattle City Council No local tax incentive was identified.
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Seattle data center moratorium | None. This is a restriction. It is listed because it governs siting in the county's largest city. Seattle City Council | On June 9, 2026 the Seattle City Council voted 9 to 0 to adopt an emergency one year moratorium on siting large AI data centers. The ordinance defines those as facilities using more than 20 megavolt amperes, which is roughly 20 megawatts. The council has an option to extend another six months. A committee amendment explicitly allows the city's existing facilities to keep operating. Those facilities carry government, education, healthcare and emergency systems. The council adopted a companion policy framework resolution calling for impact studies on infrastructure, water use, utility rates, land use, jobs and public health. Seattle City Council Spokesman Review The action followed April 2026 reports that companies had approached Seattle City Light about five large proposed facilities. Seattle City Council announcement Seattle Times | In effect now. Council Bill 121214 became Ordinance 127447. The mayor signed it on June 11, 2026. It took effect immediately as an emergency ordinance passed by a three quarters vote. Section 4 runs the moratorium for 365 days from that effective date. It expires automatically at the end of that period. The council may renew it in six month steps under RCW 36.70A.390 or end it sooner. Seattle Ordinance 127447 |
Pierce County
The third qualifying urban county under RCW 82.08.9861. The Tacoma Pierce County Chamber testified against the 2026 rollback, which suggests real activity, but no local tax incentive specific to AI data centers was identified. House bill report on ESSB 6231 New state certificates here close on July 1, 2028. ESSB 6231 enrolled text
Snohomish County
A qualifying urban county under RCW 82.08.9861, so the state exemption is technically available. The county itself hit pause in June 2026. Herald Net No local tax incentive was identified.
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Snohomish County emergency data center moratorium | None. This is a restriction. Herald Net | The county council unanimously adopted an emergency interim zoning ordinance on June 24, 2026. It pauses new AI data center siting in unincorporated Snohomish County for six months while permanent land use regulations are drafted. Council member Nate Nehring proposed it. Lynnwood Times The ordinance may be renewed for another six months if a public hearing is held and findings of fact are made before each renewal. The county had no siting rules for these facilities before this. Herald Net Snohomish County Tribune | In effect now. The six month clock started on adoption on June 24, 2026. The pause lapses around December 24, 2026 unless the council extends it. Nate Nehring on the Snohomish County pause The ordinance also requires a public hearing within 60 days of adoption. That puts the hearing deadline in late August 2026. Herald Net |
Spokane County
An awkward middle case. Spokane County does not appear on the state rural county list and it is not one of the three counties over 800,000 people, so an AI data center here qualifies for neither state exemption. Office of Financial Management rural county list RCW 82.08.9861 Avista had been negotiating with a 500 megawatt AI data center developer but paused that request on June 12, 2026, and the City of Spokane followed with a one year permitting ban. Avista City of Spokane
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Spokane citywide data center moratorium | None. This is a restriction. City of Spokane | The Spokane City Council passed Ordinance C36887 on June 22, 2026 by a 6 to 1 vote. It imposes an immediate one year citywide moratorium on the acceptance, processing, review and approval of building permit applications for new computer data centers. Council Members Paul Dillon, Sarah Dixit and Kate Telis introduced it. City of Spokane An amendment from Council Member Zack Zappone clarified how the moratorium applies to facilities that mix a data center with other business activity such as manufacturing. That mix had been a concern for the Spokane Aerospace Tech Hub. Spokesman Review Separately, on June 12, 2026 Avista said it paused negotiations over energy service for a proposed 500 megawatt AI data center. The utility said it is seeking a coordinated planning process with government agencies. Avista news release | In effect now. The city says the moratorium was immediate on passage and runs one year. It lapses around June 22, 2027 unless the council acts again. The same ordinance set a public hearing for July 22, 2026. It also directed the Climate Resilience and Sustainability Board and the Plan Commission to build a Data Center Impact Review and Policy Framework during the pause. City of Spokane |
Walla Walla County
The biggest new project in the state. Amazon Data Services is developing a campus at the Wallula Gap Business Park southeast of the Tri Cities that has been reported at roughly 4.8 to 5 billion dollars, 16 buildings, about 3.4 million square feet and about 320 jobs. Data Center Dynamics Government Technology on the Wallula Gap project description Walla Walla is on the state rural county list, so the exemption applies. Office of Financial Management rural county list The Port of Walla Walla testified against the 2026 rollback of the refurbishment exemption. House bill report on ESSB 6231
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Port of Walla Walla land sale at Wallula Gap Business Park | The port agreed in late 2024 to sell roughly 500 acres of a 1,900 acre heavy industrial park to Advance Phase LLC. On February 12, 2026 the commission voted unanimously to amend the agreement to name Amazon Data Services as the buyer and successor in interest. That Amendment No. 4 raised the transaction area to about 554 acres at a price reported above 36 million dollars. Elkhorn Media Group Earlier reporting of about 32.5 million dollars for 500 acres describes the original deal, not the current one. Tri Cities Business News Data Center Dynamics This is a land transaction on port owned industrial ground rather than a tax break. Reporting on the February 2026 amendment puts the planned AI data center campus at 4.8 billion dollars and 16 buildings built in four phases. Amazon is paying 65,000 dollars per acre. Data Center Dynamics | A negotiated purchase and sale agreement with the port commission, amended four times. The final structure splits the land into two parcels with reciprocal easements for access, utilities and rail corridors. Elkhorn Media Group | Approved but not yet closed on the public record. The commission approved the amended sale on February 12, 2026. The port was still scheduling a closing date afterward. No date has been announced. Tri Cities Business News County permitting has started and is not finished. Walla Walla County posted a notice of incomplete application for the AI data center files SDP26-01 and SEPA26-05 on June 23, 2026. The county lists an applicant open house for August 11, 2026. Walla Walla County Amazon data center FAQ |
West Virginia never wrote an incentive with the words AI data center in it, and it did not need to, because two older high technology statutes already do the work. W. Va. Code § 11-15-9h exempts servers, computer hardware, software, and building materials installed into the facility from sales and use tax, and W. Va. Code § 11-6J-3 values that same equipment at salvage value for property tax, which § 11-6J-2 fixes at five percent of original cost. W. Va. Code article 11-6J Neither statute carries a minimum investment, a job count, or a sunset. What 2025 added was not money but control. HB 2014 created a state certification for any AI data center with a critical IT load of 90 megawatts or more. For a certified site it 1) took county zoning and permitting off the table, 2) moved the assessment to the state Board of Public Works, 3) sent most of the new property tax revenue away from the host county, and 4) banned local payment in lieu of taxes deals and tax increment financing. HB 2014 enrolled text
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| High technology business sales and use tax exemption | Purchases for direct use in a high technology business are exempt from the state consumers sales and service tax and the use tax. The exempt items are 1) computer hardware, 2) software, 3) servers, and 4) building materials and tangible personal property installed into a building or facility. W. Va. Code § 11-15-9h(a)(7) W. Va. Code § 11-15-9h Tax Notes, West Virginia's unique approach to taxing data centers W. Va. Code § 11-15A-3(a)(2) Sales of electronic data processing services are exempt as well. W. Va. Code § 11-15-9h(a)(3) The building materials language is the part that matters most for an AI data center. It reaches the shell and not only the racks inside it. | The buyer has to be primarily engaged in one of the listed high technology activities. Those activities include 1) electronic data processing, 2) computer systems management, and 3) network management, maintenance, engineering, administration and security services. The statute adds that the listed work must be the primary business and not a secondary or incidental activity. W. Va. Code § 11-15-9h(b)(2) There is no minimum investment, no job or wage floor, no certification step, and no sunset date. A colocation tenant qualifies only if the tenant itself meets that definition. The exemption turns on who the purchaser is. The statute carries no memorandum of understanding or tenant pass through of the kind Virginia uses. W. Va. Code § 11-15-9h(a)(7) I found no published West Virginia Tax Division guidance applying the exemption to colocation as of August 2, 2026. West Virginia Tax Division | Active. The 2009 amendments set the shape of the exemption that AI data centers use today. Nothing since has narrowed it. W. Va. Code § 11-15-9h(c) W. Va. Code § 11-15-9h bill history |
| High Technology Business Property Valuation Act salvage value assessment | Servers and other tangible personal property directly used in a high technology business or an internet advertising business are valued at salvage value for ad valorem property tax. Fair market value does not apply. W. Va. Code § 11-6J-3 Section 11-6J-2 sets salvage value at five percent of original cost. The annual property tax bill on AI data center equipment then falls to a small fraction of what ordinary business personal property pays. W. Va. Code article 11-6J Tax Notes, West Virginia's unique approach to taxing data centers | The property has to be directly used in a high technology business or an internet advertising business as § 11-15-9h defines those terms. W. Va. Code § 11-6J-3 Owners report the equipment at 100 percent of acquisition cost on the industrial property tax return. The Tax Division then applies the salvage valuation. The Division spells that out in its 2026 industrial filing instructions. Tax Division 2026 industrial property return filing instructions | Active, and HB 2014 did not disturb it. The Legislature said so in terms when it wrote the property rules for microgrid districts. Property subject to special salvage valuation under § 11-6J-1 et seq. keeps that special valuation notwithstanding the new section. Nothing in the new article 11-6N repeals or displaces the salvage rule either. That article governs returns to the Board of Public Works and the split of the revenue rather than the measure of value. HB 2014 enrolled text |
| High Impact Data Center Program under the Power Generation and Consumption Act of 2025 | Certification by the Secretary of the Department of Commerce under § 5B-2-21a. W. Va. Code § 5B-2-21a Once a project is certified, counties and municipalities may not enact, adopt, implement, or enforce any ordinance, regulation, or rule that limits its creation, development, or operation. The Legislature said outright that it intends to occupy the whole field. HB 2014 enrolled text § 5B-2-21b Anything a developer identifies as confidential business information is exempt from the Freedom of Information Act. HB 2014 enrolled text § 5B-2-21a(e) A certified project may also buy power from a certified microgrid district that sits outside the regulated utility framework. HB 2014 enrolled text § 5B-2-21(c) This is a permitting fast track rather than a tax break. Five ways HB 2014 harms communities, West Virginia Center on Budget and Policy | The facility needs a critical IT load of 90 megawatts or more in the aggregate. It also has to be placed into service on or after July 1, 2025. HB 2014 enrolled text § 11-6N-2(b)(6) Any data center has to measure itself against that definition. It then has to notify the state within 30 days of determining that it qualifies. It must give notice sooner if it reasonably expects to qualify later. The Secretary then has 14 days from that notification to issue confirmation of certification. HB 2014 enrolled text § 5B-2-21a The mechanics live in the legislative rule at 145 CSR 20. The Department of Commerce filed that rule in the State Register on January 12, 2026. It refiled the rule on January 29, 2026 after the Legislative Rule-Making Review Committee objected. HB 4983 introduced text That rule keeps certification petitions and microgrid letters of intent confidential. The committee rejected an amendment that would have required a redacted public version. West Virginia Press Association Two projects had been certified as of June 11, 2026. One is in Berkeley County and one is in Putnam County. West Virginia Watch The director of the state Data Economy Office spoke to a House subcommittee on May 19, 2026. The director said the state needs to communicate better with the communities where these AI data centers are proposed. West Virginia Watch | Active. HB 4983 is the bill authorizing 145 CSR 20. It passed the House on February 17, 2026 and the Senate on March 11, 2026. The Governor approved it on March 27, 2026. HB 4983 bill history, West Virginia Legislature HB 4983 West Virginia Watch |
| High impact data center central valuation and property tax revenue split | Certified high impact data center property is returned to and valued by the state Board of Public Works rather than by the county assessor. HB 2014 enrolled text § 11-6N-3 This is a structural rule and not a rate cut. Revenue on the base assessed value still flows to local levying bodies. The increment gets split into five shares. Those are 1) 50 percent to the state Personal Income Tax Reduction Fund, 2) 30 percent to the situs county, 3) 10 percent to all counties per capita, 4) 5 percent to the Economic Enhancement Grant Fund at the Water Development Authority, and 5) 5 percent to the Electric Grid Stabilization and Security Fund. HB 2014 enrolled text § 11-6N-4(c)(4) W. Va. Code § 11-6N-4 Broadband Breakfast, West Virginia data center bill gets local pushback The introduced version of HB 2014 would have split the increment differently. That version would have sent 60 percent to the Personal Income Tax Reduction Fund and no share at all to the situs county. HB 2014 introduced text § 11-6N-4(b)(4) The West Virginia Center on Budget and Policy argues that this split takes locally levied dollars and hands them to the state. Those dollars would have gone to school districts and other local services. Five ways HB 2014 harms communities, West Virginia Center on Budget and Policy | It applies automatically to all data center property of a facility once the facility is certified, on and after July 1, 2025. HB 2014 enrolled text § 11-6N-4(a) Payments in lieu of taxes and tax increment financing are both prohibited for that property notwithstanding any other provision of the code. HB 2014 enrolled text § 11-6N-4(c)(5) The whole article sunsets on December 31, 2055. HB 2014 enrolled text § 11-6N-5 | Active since July 1, 2025. The 2026 regular session changed nothing in it. HB 2014 enrolled text W. Va. Code § 11-6N-4 bill history |
| Certified Microgrid Program | Developers can build certified microgrid districts that generate power. The developer can either use that power inside the district or sell it into the wholesale market. These districts are free of Public Service Commission rate jurisdiction and of local ordinances. HB 2014 enrolled text § 5B-2-21(c) JD Supra, West Virginia expands microgrid access Government Technology, West Virginia passes new data center development bill I found no West Virginia electricity or utility tax exemption specific to AI data centers. This power supply carve out is the main electricity lever the state offers. Certified Microgrid Development Program | The Secretary of the Department of Commerce certifies a district on four findings. Those are 1) that it will have a significant and positive economic impact, 2) that certification is needed to attract at least two businesses, 3) that the area is no greater than 2,250 acres and nearly contiguous, and 4) that the power generated stays inside the district or goes to the wholesale market. The operator has to hand the Secretary a confidential letter of intent. At least 120 days before submitting it, the applicant must make good faith efforts to buy power from the local distribution utility instead. HB 2014 enrolled text § 5B-2-21 The Secretary may not certify more than two districts. That cap does not apply where more than 70 percent of the power is consumed by high impact data centers. That exception is what makes the program usable at scale. HB 2014 enrolled text § 5B-2-21(b) The Data Economy Office said on June 11, 2026 that the state had just received its first application for microgrid certification. No district had been certified under the 2025 rewrite at that point. West Virginia Watch | Active. No district had been certified under the 2025 rewrite as of June 11, 2026. West Virginia Watch |
| Economic Opportunity Tax Credit | A general business expansion credit tied to qualified investment. The Division of Economic Development says it can offset up to 80 percent of two taxes. Those are 1) corporation net income tax and 2) personal income tax on flow through income. The offset reaches 100 percent if the annual median wage of the new jobs beats the statewide average nonfarm payroll wage. West Virginia business incentives It is not AI data center specific, but it is the income tax credit an operator with a real headcount would most plausibly reach for. Tax Division, Economic Opportunity Tax Credit adjustments | The credit percentage runs off a new jobs scale. The tiers are 1) 20 new jobs for a 20 percent new jobs percentage, 2) 280 jobs for 25 percent, and 3) 520 jobs for 30 percent. For credit applications filed for taxable years beginning on or after January 1, 2022, the statute adds a 10 job tier at 10 percent. That is why the Division of Economic Development summary page leads with 10 jobs. W. Va. Code § 11-13Q-9 A separate corporate headquarters credit runs off 15 new jobs in the first year. West Virginia business incentives, Corporate Headquarters Credit A taxpayer that misses the threshold may still qualify under § 11-13Q-22 if each new job pays at least 35,700 dollars a year. Tax Division, Economic Opportunity Tax Credit adjustments W. Va. Code article 11-13Q AI data centers create few permanent jobs, so this credit is a poor fit for most of them. | Active. West Virginia business incentives |
County and local programs
Berkeley County
Berkeley hosts the state first certified high impact data center, the Penzance Bedington Campus in the Falling Waters District, announced on February 26, 2026 at 4 billion dollars across 548 acres. West Virginia Division of Economic Development West Virginia Watch The Berkeley County Planning Commission also approved the concept plan for the two Berkeley parcels of the QTS Kearneysville campus, a roughly 300 acre property that straddles the Berkeley and Jefferson line. Observer No county tax incentive attaches to either project. State law leaves counties no incentive role for a certified project and bans payments in lieu of taxes and tax increment financing on that property. HB 2014 enrolled text § 11-6N-4(c)(5)
Cabell County
Alpha Technologies is converting the former Appalachian Power building on Sixth Avenue in Huntington into a 60,000 square foot AI data center, an investment reported at about 10 million dollars. WCHS Reporting says the company secured more than 2.3 million dollars in state support, which makes this the clearest case of public money going to a West Virginia AI data center. Data Center Dynamics It sits far below the 90 megawatt line, so the HB 2014 preemption and revenue split do not reach it. HB 2014 enrolled text § 11-6N-2(b)(6)
Jefferson County
The QTS Kearneysville property runs across the Berkeley line into Jefferson, and QTS holds an adjacent 191 acre parcel on the Jefferson side that is already zoned industrial and has not gone to the Jefferson County planning office for review. Observer Baxtel The county offers no AI data center incentive, and it loses its regulatory say the moment a project is certified under state law. HB 2014 enrolled text § 5B-2-21b
Logan County
Logan sits in the same TransGas proposal footprint as Mingo, and residents of both counties turned out to meetings in 2025 about the proposed AI data centers and power plants. News From The States TransGas Development Organizers set another community meeting in Logan for May 5, 2026. Logan Banner No local incentive program has been identified.
Mason County
The Monarch Compute Campus north of Point Pleasant was acquired by Nscale in March 2026 from American Intelligence and Power Corporation, which Fidelis New Energy and 8090 Industries had sponsored. Nscale Nscale is a United Kingdom based company. Data Center Dynamics It signed a letter of intent with Microsoft for 1.35 gigawatts of AI compute at the site. Nscale Acreage reports vary, with Nscale describing a campus of roughly 2,250 acres against earlier local figures nearer 2,380. No county incentive has been identified.
Mingo County
TransGas Development Systems has proposed two AI data centers with two onsite natural gas plants at its Adams Fork site, including one at Wharncliffe, and the state issued air quality permits over organized local objection. West Virginia Highlands Conservancy TransGas Development No local incentive program has been identified.
Putnam County
Google bought land near Buffalo and was certified as West Virginia second high impact data center on March 27, 2026. West Virginia Watch Office of the Governor of West Virginia The state cited the HB 2014 confidentiality provisions in declining to say how much land was bought, and no county tax incentive was part of the announcement. Given the 14 day statutory clock on certification, the state acted within days of the notification. HB 2014 enrolled text § 5B-2-21a
Tucker County
Fundamental Data has proposed the Ridgeline campus with an onsite natural gas plant between Davis and Thomas, with AI data center facilities planned in Tucker and Grant counties. WBOY The Air Quality Board upheld the project air permit in February 2026, and three citizen groups appealed that ruling on March 6, 2026. WBOY West Virginia Highlands Conservancy In June 2026 the Department of Commerce told the developer it had missed the 30 day window to petition for high impact data center certification. The developer answered on June 18, 2026. It said the duty under 145 CSR 20 section 10.1 runs to the entity that owns, operates, or leases the qualifying facility, and not to Fundamental Data LLC. Fundamental Data response letter No local incentive is involved.
Wisconsin gives a certified AI data center a full sales and use tax exemption with no dollar cap and no sunset, and it reaches servers, construction materials, cooling equipment, and the electricity the building burns. Wis. Stat. § 77.54(70) Wis. Stat. § 238.40 The state also repealed its business personal property tax effective January 1, 2024, so the servers inside the building owe the local assessor nothing. 2023 Wis. Act 12 There is no state property tax abatement for these projects, so the local tool is tax increment financing, and that is how the Microsoft, Meta, and Vantage sites are financed. WEDC 2025 Wis. Act 16
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Data Center Sales and Use Tax Exemption | Everything a certified qualified data center buys for the site comes in free of state, county, and local sales and use tax. The property has to be used exclusively for developing, constructing, renovating, expanding, replacing, repairing, or operating that data center. It also has to be used solely at that data center. Wis. Stat. § 77.54(70)(a) The statute then spells the list out. It covers computer server equipment and chassis, networking gear, switches, racks, fiber optic and copper cabling, trays, and conduit. It also covers substations, uninterruptible energy equipment, supplies, fuel piping and storage, duct banks, and switchboards. The list runs on to batteries, testing equipment, backup generation equipment, modular data centers and preassembled components, monitoring equipment, security systems, and electricity. Wis. Stat. § 77.54(70) A second paragraph covers water cooling and conservation equipment, including chillers, cooling towers, air handling units, and filters. A third covers property sold to a construction contractor that ends up as a component of the building. Wis. Stat. § 77.54(70)(c) There is no dollar cap and no sunset date. That is unusual. Electricity is exempt too, which is the part of the list that stands out. I found no published state by state comparison of how data center electricity is treated, so read that as notable rather than counted. Wisconsin Department of Revenue DOR Publication 2114 | WEDC has to certify the data center first. A cost only counts if it was spent after October 1, 2023. Wis. Stat. § 238.40 WEDC The project then has five years from the certification date to hit a minimum qualified investment. The minimum depends on county population. It is 1) 150 million dollars in counties above 100,000 people, 2) 100 million dollars in counties above 50,000 and up to 100,000, and 3) 50 million dollars in counties at 50,000 or below. A building sitting in more than one county takes the threshold of the most populous one. Wis. Stat. § 238.40(1)(b) There is no job test and no wage test anywhere in the statute. Spending by an owner, an operator, a tenant, or an affiliate of any of them all counts toward the investment. Wis. Stat. § 238.40(1)(c) Miss the target and WEDC must revoke the certification. The WEDC contract has to carry recapture provisions. WEDC may grant more time instead of pulling the certification. Wis. Stat. § 238.40(2) One question the state has not answered. Department of Revenue guidance does not address whether a colocation tenant may claim the exemption on its own purchases. The guidance speaks only to the certified entity and its contractors. I read the full publication on August 2, 2026 to confirm that. DOR Publication 2114 Wisconsin Department of Revenue | Active and unchanged as of July 2026. The statutes carry no amendment to Wis. Stat. § 238.40 since 2023 Wis. Act 19. Both bills that would have rewritten the exemption died when the session ended, 2025 Assembly Bill 245 and 2025 Senate Bill 729. |
| Personal property tax repeal | Wisconsin repealed the business personal property tax statewide effective January 1, 2024. 2023 Wis. Act 12 Avalara Servers, racks, and the rest of the equipment inside an AI data center now pay no local personal property tax at all. Land and buildings stay fully taxable as real property. The state backfills the lost local revenue through an aid payment. League of Wisconsin Municipalities I found no Wisconsin statute that lets a local government abate property tax for these projects. That is why localities reach for tax increment financing instead. 2025 Wis. Act 16 | None. The repeal is automatic and applies to every business. There is no application and no approval. 2023 Wis. Act 12 | Active, effective January 1, 2024. 2023 Wis. Act 12 |
| Data center TIF exception for Port Washington and Beaver Dam | Normally a Wisconsin municipality may not create or amend a tax increment district if that would push its districts past a value cap. The cap is 12 percent of the municipality total value, measured by the equalized value of all its districts. Act 16 carves out an exception. 2025 Wis. Act 16 The exception sits in the statutes at Wis. Stat. § 66.1105(17)(i). The exception covers only Tax Incremental District Number 5 in Port Washington and Tax Incremental District Number 10 in Beaver Dam. District 5 in Port Washington had to be created before January 1, 2028. Neither district counts against that 12 percent limit. The value increment of an excepted district is left out when the limit is figured for the other districts. Legislative Council act memo That is what made room for the very large districts financing the Vantage and Meta sites. BizTimes | Every project cost of the district has to relate to a data center inside the district. The exception reaches only the cities of Port Washington and Beaver Dam. 2025 Wis. Act 16 Legislative Council act memo An attempt to extend the same treatment statewide to any district holding a WEDC certified data center failed to pass on March 23, 2026. 2025 Assembly Bill 228 AB 228 bill text | Active, signed by Governor Evers in July 2025. 2025 Wis. Act 16 BizTimes |
| We Energies Very Large Customer and Bespoke Resources tariff | This one is a guardrail, not an incentive. On April 24, 2026 the Public Service Commission of Wisconsin approved a heavily modified Very Large Customer and Bespoke Resources tariff for We Energies. We Energies is the utility that serves the Microsoft campus. PSC press release The Commission 1) stretched the minimum initial term to 15 years, 2) dropped the eligibility threshold from 500 megawatts to 100 megawatts, 3) killed a capacity only option, 4) ordered revisions on transmission cost shifting, and 5) added reporting requirements. The lower threshold catches smaller AI data centers. The option it killed would have let an AI data center pay 75 percent of generation costs. WPR Data Center Knowledge Commissioners described the point as making these customers pay their own way in full and in the open while everyone else is held harmless. PSC press release | It applies to new very large electric customers in We Energies territory at or above 100 megawatts of demand. PSC press release The Commission does not regulate the permitting, construction, or operation of the AI data center itself. PSC press release WPR | Approved April 24, 2026. PSC press release |
| Alliant Energy electric service agreement for the Beaver Dam data center | Also a guardrail. On May 7, 2026 the Commission approved a modified one off electric service agreement between Alliant Energy and the Meta subsidiary building the Beaver Dam campus. The agreement sits under Alliant existing Individual Contract Rate Tariff. PSC press release The Commission attached transparency and customer protection conditions. Several commissioners were blunt about how little of the deal was public. Wisconsin Watch It also ordered Alliant to come back with a standardized tariff for future AI data center customers above 100 megawatts. That way those customers rather than ordinary ratepayers carry the cost. Milwaukee Journal Sentinel | It applies to Alliant Energy service in Wisconsin. Future AI data center loads above 100 megawatts are meant to be served under the standardized tariff Alliant was ordered to file. That replaces individually negotiated contracts. PSC press release Milwaukee Journal Sentinel | Approved May 7, 2026. PSC press release |
County and local programs
Dane County
Epic Systems runs its own certified hosting AI data center in the city of Verona on the state sales tax exemption, and I found no separate local incentive for it. Wisconsin Department of Revenue Dane County went the other way in June 2026 and paused new hyperscale data centers in the areas it zones. Dane County
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| State qualified data center certification for Epic Hosting, LLC in Verona | Epic Hosting, LLC has held WEDC certification since September 24, 2024 for its Utility Building number 3 and additions on Milky Way in Verona. The certification makes its eligible purchases free of state and local sales and use tax. Wisconsin Department of Revenue This is the state program landing at a Dane County address and nothing more. No city of Verona or Dane County tax increment district, abatement, or other local incentive for the project turned up. WEDC | The site has to hit the minimum qualified investment for its county within five years of certification. For a county with population greater than 100,000 that minimum is 150 million dollars. Wis. Stat. § 238.40 Wis. Stat. § 77.54(70) | Active. The Department of Revenue list of certified qualified data centers still carries Epic Hosting, LLC with its September 24, 2024 certification date. That list is stated as of October 31, 2025 on a page current through June 25, 2026. Wisconsin Department of Revenue That puts the five year deadline to hit the minimum qualified investment at September 24, 2029. Wis. Stat. § 238.40 |
| Dane County hyperscale data center moratorium | A restriction rather than an incentive. It is also the biggest thing happening in the county. On June 4, 2026 the Dane County Board of Supervisors approved an 18 month pause on zoning permit applications for hyperscale data centers. The pause covers the unincorporated areas the county zones and runs into December 2027. Dane County A committee amendment set the threshold at facilities that use at least 5,000 servers and occupy at least 10,000 square feet of floor space. Dane County Isthmus The city of Madison adopted a separate 12 month moratorium of its own. The pause is meant to buy an advisory committee time to finish its study. That study covers the more than two dozen communities under county zoning. Cap Times | It reaches hyperscale AI data centers in unincorporated Dane County under county zoning. Dane County It does not reach incorporated cities and villages that do their own zoning. The existing Epic site in Verona is untouched. Isthmus | In effect now. The board adopted Sub 1 to 2026 RES-039 on June 4, 2026. County Executive Melissa Agard signed it on June 8, 2026. Dane County file 2026 RES-039 The resolution runs the pause for 18 months from the effective date or until the board rescinds it, whichever comes first. Sub 1 to 2026 RES-039 |
Dodge County
Meta is building a more than 1 billion dollar AI data center in the city of Beaver Dam, financed in part through a city tax increment district, and the council approved a much smaller second project in April 2026. WEDC City of Beaver Dam TID No. 10 project plan Daily Dodge
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Beaver Dam data center TID for the Meta campus | The city created Tax Incremental Finance District No. 10 on November 4, 2024 to fund infrastructure serving the Meta campus in the Beaver Dam Commerce Park. The project plan puts total district costs at 128,522,000 dollars. That breaks down into 1) 100 million dollars of pay as you go development funds and incentives, 2) 10 million dollars of transportation work, 3) 10 million dollars of pay as you go utility investment, and 4) 6 million dollars of water system work. The expenditure period runs to November 4, 2039. The district terminates November 4, 2045. City of Beaver Dam TID No. 10 project plan city development agreement The district relies on the exception to the 12 percent tax increment financing limit. That exception names Beaver Dam by name. 2025 Wis. Act 16 The exception sits in the statutes at Wis. Stat. § 66.1105(17)(i). Meta announced the project on November 12, 2025 as a more than 1 billion dollar investment. WEDC In early April 2026 the Common Council approved a second and far smaller project. It is an Oppidan edge data center of about 90,000 square feet at Highway 151 and Hemlock Road. The city is selling Oppidan about 13 acres for 407,340 dollars, or 31,000 dollars per acre. The developer gets no tax increment financing incentive. The city said it may add the site to an existing tax increment district to pay for roads. The minimum taxable value is 40 million dollars. Daily Dodge City of Beaver Dam Daily Reporter WPR Degas LLC has held the state qualified data center certification since February 18, 2025 for the County Road A site. Wisconsin Department of Revenue Degas is the Meta affiliate Alliant Energy contracted with to serve the campus. WPR On May 7, 2026 the Public Service Commission approved the Alliant Energy electric service agreement serving the campus, with conditions attached. PSC press release | The terms sit in the development and purchase agreements between the city and the developers. city development agreement Every project cost of the district must relate to the data center for the Act 16 exception to hold. The project plan says so on its face. It adds that the district will not be a donor to other city districts. City of Beaver Dam TID No. 10 project plan 2025 Wis. Act 16 No cash grant is paid until a developer agreement is executed. City of Beaver Dam TID No. 10 project plan The Oppidan developer gets no tax increment financing incentive. The city said it may add the parcel to an existing tax increment district to pay for roads. There is a land sale at 31,000 dollars per acre and a 40 million dollar minimum taxable value. City of Beaver Dam Daily Reporter | Active. The Department of Revenue lists Beaver Dam Tax Incremental District No. 10 among active districts as of April 16, 2026. The list gives a resolution date of November 4, 2024 and a normal end date of November 4, 2045. Wisconsin Department of Revenue active TID report 2026 active TID list |
Ozaukee County
Vantage Data Centers is building a very large AI campus in the city of Port Washington, backed by a city development agreement and a 458 million dollar tax increment district created for the project. WPR Milwaukee Journal Sentinel Voters then passed a referendum in April 2026 restricting future large districts, and business groups sued over it and lost. Wisconsin Watch BizTimes
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Port Washington development agreement and data center TID for the Vantage campus | The Port Washington Common Council approved a development agreement with Vantage on August 19, 2025. Fox 6 City of Port Washington In November 2025 the council unanimously created Tax Incremental District No. 5. It is a 458 million dollar district paying for roads, water, and the rest of the infrastructure the campus needs. WPR Wisconsin Watch Vantage fronts the infrastructure costs and gets reimbursed out of the new property tax revenue. The district runs up to 20 years or until Vantage has been repaid, whichever comes first. Milwaukee Journal Sentinel The district only works because of the exception to the 12 percent tax increment financing limit. 2025 Wis. Act 16 The exception sits in the statutes at Wis. Stat. § 66.1105(17)(i). Local reporting and city materials describe the campus as roughly a 15 billion dollar project and a hub for the OpenAI and Oracle Stargate program. WPR Oracle America Cloud Services LLC has held the state qualified data center certification since October 31, 2025 for four buildings at 531, 533, 701, and 723 E. Lake Drive. The company was formerly Green Chile Ventures, LLC. Wisconsin Department of Revenue | The terms sit in the development agreement between the city and Vantage. Reporting describes that agreement as committing Vantage to at least 8 billion dollars in development costs across roughly 672 acres. Milwaukee Journal Sentinel Fox 6 Every project cost of the district must relate to the data center for the Act 16 exception to hold. 2025 Wis. Act 16 On April 7, 2026 city voters approved an ordinance by 66 percent. It requires voter approval before Port Washington may create a district with a projected base value of 10 million dollars or more. The same approval is needed if projected project costs run above 10 million dollars. It reaches only future districts. The 458 million dollar district is left alone. Ballotpedia Wisconsin Watch The Metropolitan Milwaukee Association of Commerce and allied groups sued to stop the referendum. Judge Adam Gerol of the Ozaukee County Circuit Court denied their injunction on February 23, 2026. He said a court should not call off an election or rule on a hypothetical ordinance that is not yet law. The suit was dismissed on February 25, 2026. He noted the constitutional challenge could return once the ordinance passed. Wisconsin Law Journal BizTimes No renewed challenge had been reported as of August 2, 2026. BizTimes | Active. The Common Council was still taking presentations on district projects on April 21, 2026. City of Port Washington The project plan ends the expenditure period on October 1, 2040. It gives the district a final revenue year of 2047. The city expects to pay off every project cost and close it around 2045. City of Port Washington TID No. 5 project plan |
Racine County
Microsoft is building a very large AI data center campus in the village of Mount Pleasant on the old Foxconn site, on land it bought inside tax increment district number 5, with a property tax earn back attached to the original parcel. Microsoft fact sheet The first facility was finished in June 2026. Microsoft A separate Microsoft site in the village of Caledonia was withdrawn in October 2025 after neighbors objected. CNBC WPR
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Mount Pleasant TID No. 5 development agreement with Microsoft | The village sold Microsoft roughly 315 acres inside Tax Incremental District No. 5 for 50,085,000 dollars in 2023. Microsoft fact sheet Village of Mount Pleasant Under the development agreement Microsoft can recoup 42 percent of the annual incremental property taxes it pays on the improvements it builds. The recovery is capped at 5 million dollars per year and runs for the life of the agreement and the district. It comes only after the village has first collected enough tax increment revenue to cover every other obligation of the district. Microsoft fact sheet In November 2023 Microsoft moved to acquire about 1,030 more acres in the district, roughly 630 of them from the village. That took its holdings to about 1,345 acres. That expansion deal came with no additional public financial incentives, no new borrowing, and no new infrastructure from the village or the county. Microsoft instead guaranteed a minimum assessed value of 1.4 billion dollars by January 1, 2028. WPR Fox 6 Microsoft has committed more than 7 billion dollars in Wisconsin as of September 2025. WEDC On January 26, 2026 the village board unanimously approved site plans for 15 more AI data centers across two new campuses. The company put the taxable value above 13 billion dollars. That is where the roughly 20 billion dollar figure in later reporting comes from. CNBC WPR WPR Microsoft has held the statewide qualified data center certification since October 1, 2023 for its 90th Street location. Wisconsin Department of Revenue Microsoft finished the first AI data center on the site and brought it online in April 2026. The company calls that building Fairwater. A second one is going up next door and is due in 2028. Microsoft | The original agreement called for a data center campus costing more than 1 billion dollars. Phase 1 construction had to start no later than July 1, 2026 and phase 2 no later than July 1, 2033. Microsoft fact sheet If Microsoft fails to start by those deadlines the village and the county may buy the land back at the original per acre price. Payments depend on there being enough tax increment revenue. The implementation agreement neither cuts Foxconn obligations in the district nor hands Foxconn anything new. Microsoft fact sheet The 2023 expansion added a separate obligation. Microsoft guaranteed a minimum assessed value of 1.4 billion dollars by January 1, 2028. That sits on top of the matching 1.4 billion dollar guarantee Foxconn already owed. WPR | Active. The Department of Revenue lists Village of Mount Pleasant Tax Incremental District No. 5 among active districts as of April 16, 2026. The list gives a resolution date of November 20, 2017 and a normal end date of November 20, 2047. Wisconsin Department of Revenue active TID report 2026 active TID list Microsoft had its first building on the site running before the July 1, 2026 deadline to start phase 1 construction. Phase 2 is not due to start until July 1, 2033. Microsoft Microsoft fact sheet |
Wyoming exempts almost everything a large AI data center buys from sales and use tax, and the state charges no corporate income tax and no personal income tax at all. Wyo. Stat. 39-15-105(a)(viii)(S) Tax Foundation The trade is that property tax is assessed and collected locally and Wyoming local governments have no authority to abate it, so the negotiation in Wyoming is about land, power contracts and permits rather than tax breaks. Joint Revenue Interim Committee presentation Wyoming Department of Revenue tax relief
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Data Processing Services Center Sales and Use Tax Exemption, computer equipment tier | No state or local sales or use tax on qualifying purchases or rentals. Covered items are 1) prewritten and other computer software, 2) computers, servers, monitors, keyboards, storage devices and other peripherals, 3) the containers used to move and house that equipment, and 4) racking systems, cabling and trays. Wyo. Stat. 39-15-105(a)(viii)(S)(I) Wyo. Stat. 39-15-105 on FindLaw Wyo. Stat. 39-16-105 The state sales tax rate is four percent. Counties may add up to two percent more. The saving is roughly four to six percent of covered spend. Tax Foundation Cheyenne LEADS incentives The Department of Revenue put the unrealized sales and use tax at 22.6 million dollars for calendar 2022 and at 166 million dollars cumulatively from 2010 through 2022. Wyoming Department of Revenue data center exemption report, November 1, 2023 That 2022 number is a statewide total and not a per facility average. The Department contacted five certified centers for that year, two answered, and only one bought enough to use both halves of the exemption. Wyoming Department of Revenue data center exemption report, November 1, 2023 Wyoming Business Council handout to the Legislature Those figures are floors, not totals. Reporting to the Wyoming Department of Revenue is voluntary. Most operators have ignored the requests. The true statewide value of the exemption is larger than any published number. No exact figure existed as of August 2, 2026. Cowboy State Daily, June 12, 2026 | The buyer must have a physical location in Wyoming where the equipment is kept and run until it is replaced or reaches the end of its serviceable life. Qualifying equipment purchases must exceed two million dollars in a single calendar year. The buyer must make an initial total capital asset investment of at least five million dollars at the Wyoming location. A capital investment of that size made in the five years immediately before March 5, 2010 also counts. Wyo. Stat. 39-15-105(a)(viii)(S)(I) The buyer must also get a certification from the Wyoming Business Council that it has created or will create a number of Wyoming jobs appropriate to the size and stage of development of the center. The Business Council decides what counts as appropriate. Wyo. Stat. 39-15-105(a)(viii)(S)(III)(4) Wyoming Business Council, Data Center Sales Tax Exemption If the annual two million dollar threshold is missed, the buyer must accrue and remit the tax by the end of the following January. Where one or more entities occupy a single facility, the requirements are measured in the aggregate across those entities, no matter who owns which equipment or building. Wyo. Stat. 39-15-105(a)(viii)(S)(III) | Active as of August 2, 2026 with no sunset date. ServerCountry, Wyoming policy The 2026 budget session adjourned on March 11, 2026 without changing it. The last serious repeal attempt died in committee in 2021. 2026 budget session recap Wyoming Public Media, February 24, 2021 |
| Data Processing Services Center Sales and Use Tax Exemption, power and cooling tier | No state or local sales or use tax on qualifying purchases or rentals in this tier. Covered items are 1) uninterruptible power supplies, 2) back up power generators, 3) specialized heating and air conditioning equipment, and 4) air quality control equipment used to control the computer environment. Wyo. Stat. 39-15-105(a)(viii)(S)(II) Sales Tax Institute This is the tier that matters most for an AI campus, because it covers the electrical and mechanical plant rather than just the servers. The matching use tax exemption sits in the use tax article at Wyo. Stat. 39-16-105. Wyo. Stat. 39-16-105 | Same physical presence, documentation, Business Council jobs certification and aggregation rules for shared facilities as the computer equipment tier. Qualifying purchases of this equipment must also exceed two million dollars in a single calendar year. That is the same annual threshold that applies to the computer equipment tier. Only the capital investment floor differs. It is fifty million dollars at the Wyoming location. A capital investment of that size made in the five years immediately before April 1, 2011 also counts. Wyo. Stat. 39-15-105(a)(viii)(S)(II) and (III) Wyoming Business Council, Data Center Sales Tax Exemption | Active as of August 2, 2026 with no sunset date. The 2026 budget session did not change it. 2026 budget session recap ServerCountry, Wyoming policy |
| Managed Data Center Cost Reduction Grant | A grant that reimburses the cost of electrical power, broadband or both for a managed data center. The maximum is two million two hundred fifty thousand dollars per project. Wyo. Code R. 085-0022-3, maximum amount and match Money may be paid out over five years once the committed business meets its match. Any single year of payment may total no more than one third of the award, plus any unused balance carried forward from earlier grant years. The rule publishes a table of three worked examples, at award levels of 2,250,000 dollars, 1,500,000 dollars and 750,000 dollars. Wyoming Business Council rules, agency 085 program 0022 Wyoming Business Council BRC rules rewrite, Chapter 3 The Business Council program summary describes the award as running over three years. That is plain English shorthand rather than a second rule. Where the summary and the rule differ, the rule text governs. Wyoming Business Council, Managed Data Center Cost Reduction Grant The board has awarded the grant at that maximum at least once. It approved 2,250,000 dollars on December 9, 2021 on a City of Cheyenne application to help Microsoft expand in Cheyenne. Wyoming Business Council board action, December 9, 2021 | The applicant is the city, county or local economic development organization, not the company. The Business Council cannot grant state money directly to a private business. Wyoming Business Council financial incentives The rule requires a private investment match set at 125 percent of the grant. A 2,250,000 dollar grant carries a 2,812,500 dollar match. At least half the match must be calculated from the gross wages of created positions. Those positions must pay 150 percent of the median wage for all occupations in the county where the project sits. No more than half of the match may come from private capital investment in taxable items. The match may be realized over five years. Wyo. Code R. 085-0022-3 Wyoming Business Council BRC rules rewrite, Chapter 3 If the committed business does not begin operating within one year of grant approval, or stops operating within that year, the grant expires automatically. Council staff may extend the start date. If five years pass from the start of operations without the match being met, some or all of the grant may revert to the Business Ready Community account. Wyoming Business Council rules, agency 085 program 0022 The Business Council writes these rules under Wyo. Stat. 9-12-104(a)(iv) and Wyo. Stat. 9-12-601. Wyoming Business Council rule authority section | Active, with the current rule effective February 27, 2026. The chapter number moved during the 2024 to 2026 rewrite. Under the old numbering the rule sat at agency 085, sub agency 0001, chapter 4. It now sits at agency 085, program 0022, chapter 3. The rewrite changed the match wage basis from net wages to gross wages. Wyoming Business Council rules, agency 085 program 0022 Wyoming Business Council BRC rules rewrite, Chapter 3 the older compilation at chapter 4 |
| Business Ready Community Grant and Loan Program | Grants and loans for publicly owned infrastructure that serves a specific business. Covered work includes 1) water, 2) sewer, 3) streets and roads, 4) telecommunications, 5) airports, 6) purchase of rights of way, 7) purchase of land, 8) buildings, and 9) industrial or business park development. Wyoming Business Council, Business Ready Community This is the vehicle that has paid for road and utility work around Wyoming AI data center sites. It is a general economic development tool rather than an AI data center program. The Managed Data Center Cost Reduction Grant sits inside it as one chapter. Wyoming Business Council rules, agency 085 program 0022 The program itself is created by Wyo. Stat. 9-12-601. That statute lets a city, town, county or the Eastern Shoshone or Northern Arapaho tribe apply to the council for a grant or loan. Wyo. Stat. 9-12-601 | The applicant must be a city, town, county, joint powers board or the Eastern Shoshone or Northern Arapaho tribe. The private company is the committed business behind the application and signs a development agreement. Wyoming Business Council, Business Ready Community Grant and Loan Program Wyo. Stat. 9-12-601 Grant and loan funds may not be used to rehabilitate or expand existing infrastructure. The Council may allow an exception. Wyoming Secretary of State exempt rules filing The Business Council is rewriting the rules and rebranding the program as Building Resilient Communities. An applicant should confirm the current chapter before relying on older guidance. Wyoming Business Council, Business Ready Community The program chapter is cited as Wyo. Code R. 085-0022-1. The Business Council writes it under Wyo. Stat. 9-12-104(a)(iv) and Wyo. Stat. 9-12-601. Wyoming Business Council rules, agency 085 program 0022 Wyoming Business Council rule authority section | Active. The rules were under revision as of July 2026. Wyoming Business Council, Business Ready Community |
| Industrial development revenue bonds under the Wyoming Industrial Development Projects Act | Cities and towns may issue revenue bonds to finance a private industrial development project. The bonds can lower the borrowing cost for buildings and equipment. They are repaid from project revenue and are not a general obligation of the issuer. Wyo. Stat. 15-1-701 through 15-1-710 Casper publishes a standing policy for these bonds. Riverton has adopted a policy resolution. The mechanism is live rather than theoretical. City of Casper industrial revenue bonds City of Riverton policy resolution | The local governing body must find the project serves the public interest. City of Casper industrial revenue bonds Casper then runs the request through its own policy, where the Council considers a resolution of inducement once it decides to proceed. City of Casper policy for issuing industrial development bonds, section 8 This is a financing tool, not a tax break. It does not reduce property tax. The Act exempts the project from property tax but the issuer must negotiate an annual fee in lieu of tax that fully compensates the taxing bodies. Federal tax exempt treatment is limited by the Internal Revenue Code. Most large AI data center issues would therefore be taxable bonds. Joint Corporations Committee industrial revenue bond memo No Wyoming AI data center is confirmed to have used this route as of August 2, 2026. | Active general purpose authority with no confirmed AI data center use. City of Casper industrial revenue bonds |
County and local programs
Converse County
Converse County holds the data hall side of the Prometheus Hyperscale Falls Ranch campus, roughly ten miles east of Casper on a property that straddles the Converse and Natrona county line. The campus was announced in October 2025 with an initial minimum investment of 500 million dollars, is planned at about 1.5 gigawatts with a target of operating by 2028, and involves partners Spiritus and Casper Carbon Capture. Oil City News, May 1, 2026 Prometheus Hyperscale No county tax incentive was identified, and Wyoming counties have no abatement authority in any event. Joint Revenue Interim Committee presentation
Fremont County
Fremont County contains most of the Wind River Indian Reservation, where an AI data center is at the study stage rather than the permitting stage. There is no county incentive. The only public money identified is a small state feasibility grant, and the project is contested between the tribes. Cowboy State Daily, April 20, 2026 County 10
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Wyoming Business Council feasibility grant, Northern Arapaho Tribe | In April 2026 the Wyoming Business Council awarded a 50,000 dollar grant to the Northern Arapaho Tribe. The grant is for a study of the feasibility of a large climate controlled AI data center on the Wind River Indian Reservation. The underlying project had been approved in 2024. County 10 This is a study grant, not a construction incentive. No site, developer or capacity has been announced. Cowboy State Daily, April 20, 2026 | Wyoming Business Council grant to the tribe. The award drew objection from at least one Eastern Shoshone Business Council chairman over water, power and land rights. Control of the Eastern Shoshone governing body is itself the subject of an ongoing tribal court case. Cowboy State Daily, April 20, 2026 | Awarded in April 2026 and still at the study stage. The grant was still in place, and still contested on the reservation, as of June 3, 2026. No completion date for the study has been published. Cowboy State Daily, April 20, 2026 Cowboy State Daily, June 3, 2026 |
Laramie County
Cheyenne and Laramie County are the Wyoming cluster and hold the great majority of the state's operating capacity. As of July 2026 Cheyenne LEADS counts ten existing AI data center locations, five more under construction and another nine in advanced discussion, plus 36 companies or site selectors that have expressed interest and about 30 more exploratory callers. Cheyenne LEADS data center facts, April 14, 2026 Cowboy State Daily, July 8, 2026 The local offer is not a tax abatement, because Wyoming counties cannot grant one. It is served industrial land from Cheyenne LEADS, public infrastructure paid for with state Business Ready Community money, and two purpose built electric tariffs from Black Hills Energy. Cheyenne LEADS incentives Black Hills Energy data center solutions
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Large Power Contract Service tariff, Cheyenne Light Fuel and Power doing business as Black Hills Energy | A negotiated contract rate for very large customers. It lets the AI data center pay for dedicated generation and purchased power rather than buying at the standard general service rate. Black Hills built it with Microsoft. The Wyoming Public Service Commission approved it in 2016. Utility Dive on the Microsoft tariff The structure recovers the cost of the resources built to serve the customer from that customer. That is why the Office of Consumer Advocate supports it. Joint Corporations Committee data center presentation, July 2024 The utility applied for the rate in Docket No. 20003-146-ET-15, Record No. 14242. Microsoft intervened in that case. Wyoming Public Service Commission open meeting agenda, December 8, 2015 The rate schedule then sat in Wyo. P.S.C. Tariff No. 13. That tariff is the Cheyenne Light, Fuel and Power schedule of rates for electric service. Cheyenne Light, Fuel and Power, Wyo. P.S.C. Tariff No. 13 | Available to customers with an electric demand of thirteen megawatts or more. The customer must meet a capacity obligation. It can do that 1) through its own back up generation, 2) through company owned generation built specifically for it, or 3) through renewables and storage procured on its behalf. Black Hills Energy data center solutions Joint Corporations Committee data center presentation, July 2024 | Active. The Large Power Contract Service schedule carried over into Wyo. P.S.C. Tariff No. 14. That tariff took effect on March 1, 2023 and cancelled Tariff No. 13 in its entirety. Cheyenne Light, Fuel and Power, Wyo. P.S.C. Tariff No. 14 |
| Blockchain Interruptible Service tariff, Black Hills Energy | A lower cost interruptible rate for crypto mining and similar flexible compute load. The utility can curtail that load when the system is tight. It is the reason several smaller mining operations located near Cheyenne. The first customer under the tariff signed a five year agreement in 2022 for up to 45 megawatts. Oil City News, June 21, 2022 Wyoming Public Media, August 16, 2022 | The customer must accept interruption on the utility's terms. Black Hills proposed the tariff. The Wyoming Public Service Commission approved it in 2019. Wyoming Public Media, August 16, 2022 The Wyoming Office of Consumer Advocate worked with Cheyenne Light, Fuel and Power on a rate structure meant to take on crypto and AI data center load without shifting cost to existing customers. Joint Corporations Committee data center presentation, July 2024 Cheyenne LEADS data center facts, April 14, 2026 | Active. The Blockchain Interruptible Service rate schedule sits in the current Wyo. P.S.C. Tariff No. 14 at original sheet 32. The effective date is April 1, 2023. Cheyenne Light, Fuel and Power, Wyo. P.S.C. Tariff No. 14 |
| City of Cheyenne Managed Data Center Cost Reduction grant for Microsoft | The Wyoming Business Council board approved a 2,250,000 dollar Business Ready Community Managed Data Center Cost Reduction grant requested by the City of Cheyenne to assist Microsoft with its Cheyenne expansion. Wyoming Business Council board action This is the clearest confirmed instance of the state power and broadband cost grant actually being used for a Wyoming AI data center. It also shows the intended mechanics. The city applies, and the company is the committed business behind the application. Wyoming Business Council, Managed Data Center Cost Reduction Grant | City of Cheyenne as applicant, Microsoft as the committed business, and the match and payout terms of the Managed Data Center Cost Reduction rule. Wyo. Code R. 085-0022-3 Wyoming Business Council BRC rules rewrite, Chapter 3 Wyoming Business Council board action | Awarded, not open. The board approved it on December 9, 2021 for a Microsoft facility at the Bison Business Park south of Cheyenne. That facility was projected to begin operating by late 2022 or early 2023. The money is committed to that one project. A new AI data center would have to win its own award. Wyoming Business Council board action, December 9, 2021 Cap City News, February 8, 2022 |
| Cheyenne LEADS served industrial land | Cheyenne LEADS is the private non profit economic development corporation for Cheyenne and Laramie County. It assembles and services industrial land and sells it to qualifying projects. It began working with Meta in 2019 on what became an 800 million dollar, 715,000 square foot campus. That campus sits on a 960 acre parcel in the High Plains Business Park. Cheyenne LEADS on the Meta announcement Meta, hello Cheyenne Its own incentives page says Wyoming's approach is to keep the tax burden low for everyone rather than to grant selective credits. The same page says packages are customized to the company. Cheyenne LEADS incentives Not every Cheyenne campus sits on land that Cheyenne LEADS assembled. Google's Project Tembo is the largest AI data center project in the state. It is a 716 acre campus eight miles south of Cheyenne in the Switchgrass Industrial Park. The recorded deeds show that ground belongs to the Lazy D Grazing Association and to Boyd and Allison Meyer. Cowboy State Daily, July 8, 2026 | Negotiated case by case. Cheyenne LEADS publishes no fixed formula and no public schedule of terms. Cheyenne LEADS incentives | Active. The Cheyenne LEADS page on data centers was last updated on July 13, 2026. It states that the City of Cheyenne and Laramie County do not currently offer a dedicated local data center incentive program. Cheyenne LEADS on data centers |
| City of Cheyenne annexation for Microsoft, no community benefits agreement | None. On June 22, 2026 the Cheyenne City Council advanced the annexation of a 3,500 acre tract next to Microsoft's existing AI data centers. The parcel is roughly one fifth the size of Cheyenne. Microsoft describes it as a ten to twenty year expansion site. In the same meeting the council rejected, eight to three, Councilman Larry Wolfe's amendment seeking a 50 million dollar community benefits agreement. The agreement would have collected ten million dollars a year for five years starting July 2027. It would also have set contractual guardrails on as many as forty items, from water and emissions to traffic, noise, wildlife and affordable housing. Cowboy State Daily, June 23, 2026 Mayor Patrick Collins was absent from the vote. He had earlier called the proposal extortion. Microsoft said it was open to discussion but wanted to move quickly. The company also said it is not seeking exemptions from the city's normal development process. Cowboy State Daily, June 23, 2026 Cowboy State Daily, June 15, 2026 | Ordinary municipal annexation process. No abatement, payment in lieu of tax or community benefits agreement is attached. Cowboy State Daily, June 23, 2026 | Approved and final. The annexation passed on third and final reading on a six to three vote. That council meeting ran from the evening of July 13, 2026 into the following morning. The zoning ordinances for the site passed their third readings at the same meeting. Microsoft had closed on the land on June 26, 2026. Cap City News, July 14, 2026 |
| Laramie County land sales and site plan approvals | The county sells surplus county land to developers and approves site plans. On January 6, 2026 the commissioners unanimously approved site plans for a paired campus south of Cheyenne. It pairs a roughly 600 acre AI data center with a 659 acre natural gas power plant. Initial AI data center capacity is 1.8 gigawatts. On site gas generation from Tallgrass is 2.7 gigawatts. The plan states a path to scale toward 10 gigawatts. Reported total investment was about 50 billion dollars. That splits into more than 40 billion dollars for the AI data center and more than 7 billion dollars for the power plant. New Project Media Wyoming Public Media, January 14, 2026 Inside Climate News On June 2, 2026 the commissioners sold 64.85 acres next to the Archer Complex east of Cheyenne to Cryptonite LLC for 370,948 dollars. The county kept the mineral rights and the shooting range parcel. Cryptonite said it intends a crypto mining operation, an AI data center or both. As of August 2, 2026 it had filed no project. No state or local assistance had been announced for the parcel. Cap City News, June 3, 2026 Cap City News, June 2, 2026 | Ordinary county land sale and site plan process. No property tax reduction accompanies either transaction. Wyoming counties lack abatement authority. Joint Revenue Interim Committee presentation Laramie County, Project Tembo public notice | Both actions stand as of July 2026. The county is still processing permits for the same campus. Google was named on July 8, 2026 as the owner of the AI data center approved in January. Further site plan amendments and permit applications were filed with the county on June 30, 2026. A hearing on a further permit was set for August 13, 2026. Cowboy State Daily, July 8, 2026 |
Natrona County
Natrona County holds the workforce hub and the on site power generation for the Falls Ranch campus, with the data halls placed across the line in Converse County. The live local question in June 2026 was whether the county would use a planned unit development to create an industrial park, which residents objected to because it could route the project around the state industrial siting review. The commissioners did not act on that. Cowboy State Daily, June 17, 2026 Your Wyoming Link Reporting also describes the developer negotiating Community Benefit Agreements with local municipalities, and Casper maintains a standing industrial development revenue bond policy. Oil City News, May 1, 2026 City of Casper industrial revenue bonds No county tax incentive was identified.
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| City of Casper industrial development revenue bonds | Casper publishes a standing program for industrial development revenue bonds. The bonds provide lower cost financing for private business projects that support the local economy. The program reduces borrowing cost, not tax. City of Casper industrial revenue bonds The state authority behind these bonds is the Wyoming Industrial Development Projects Act at Wyo. Stat. 15-1-701 through 15-1-710. Joint Corporations Committee industrial revenue bond memo | City approval, then a resolution of inducement the Council considers once it decides to proceed. City of Casper policy for issuing industrial development bonds, section 8 Repayment comes from project revenue. No AI data center use was confirmed as of August 2, 2026. City of Casper industrial revenue bonds Oil City News, May 1, 2026 The large AI data center proposed in eastern Natrona County is not on this path either. At their June 16, 2026 meeting the Natrona County commissioners declined to create a planned unit development for the Natrona County parts of the Prometheus project, including the power plant and the worker camp. They pointed the developer to the state industrial siting process instead. Cowboy State Daily, June 17, 2026 | Active. The Casper City Council adopted the administrative policy for these bonds at its December 16, 2025 meeting. The city takes applications on a rolling basis. Review runs about two months. City of Casper industrial revenue bonds |
Platte County
Platte County is the newest and largest proposal in the state. A company called Site Layer 4, described in reporting as a New York firm, applied in July 2026 to rezone 5,344 acres from agricultural to industrial. The land is Lazy V Six Ranch, northeast of Wheatland along the Goshen Hole Rim near the Goshen County line. Site Layer 4 describes the project as a 26 billion dollar AI data center campus with paired utility scale power generation. Cowboy State Daily, July 13, 2026 Torrington Telegram WyoFile on the Site Layer 4 rezoning The Platte County Planning and Zoning Commission will hear the rezoning on August 26, 2026. The county commissioners will hear it on September 2, 2026. Both hearings are at the Agriplex in Wheatland. Platte County notice Nothing has been approved and no local incentive has been identified.
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Site Layer 4 rezoning application, no incentive identified | None identified. The application asks only to change the zoning from agricultural to industrial. No abatement, payment in lieu of tax or development agreement has been made public. Wyoming counties have no authority to abate property tax in any event. Platte County notice Joint Revenue Interim Committee presentation Whether Site Layer 4 seeks any state or local assistance cannot be known until it asks. The first hearing had not yet been held as of August 2, 2026. Cowboy State Daily, July 13, 2026 The request covers 5,344 acres of ranchland along the Goshen Hole Rim near the Goshen County line. It would open the door to a combined AI data center and power generation campus. Torrington Telegram | Rezoning approval from the Platte County Planning and Zoning Commission and then the county commissioners, after public hearing. Platte County notice | Pending. The hearings were rescheduled. The Platte County Planning and Zoning Commission will now hear the request on August 26, 2026. The Platte County Commissioners will hear it on September 2, 2026. Written comment is due by noon on August 20, 2026. Platte County notice |
Uinta County
Uinta County is the second real cluster and the home of Prometheus Hyperscale, the only AI data center developer actually based in Wyoming. At a June 16, 2026 meeting in Lyman the county commissioners approved an industrial subdivision rezone. They then voted unanimously to grant a conditional use permit for the flagship 506 acre campus. That campus sits about twelve miles east of Evanston on the south side of Interstate 80. It is designed for 1.25 gigawatts initially, with a development path to 5 gigawatts. WyoFile KPCW, June 19, 2026 The county is also where the company started. The original 58 acre Wyoming Hyperscale White Box site on Aspen Mountain, a remote rise southeast of Evanston, sits in Uinta County, and it was folded into Prometheus Hyperscale when the two merged and the concept grew toward 1 gigawatt. Prometheus Hyperscale on the merger Baxtel, Aspen Mountain Hyperscale No local tax incentive was identified. What the county extracted instead was a written set of permit conditions, and those conditions are now being challenged in court. Cowboy State Daily, July 17, 2026
| Program | What it gives | Who qualifies | Status |
|---|---|---|---|
| Conditional use permit with binding conditions | There is no local tax abatement. What the county got is a list of conditions attached to the permit. Fifteen conditions were outlined and agreed to between the morning work session and the afternoon meeting on June 16, 2026. WyoFile Prometheus must begin construction within five years and notify the county. Three objective tests decide what counts as beginning. They are 1) mass grading of 250,000 cubic yards, 2) pouring foundations, or 3) erecting a building shell. All federal, state and local environmental standards must be met, including compliance with the Wyoming Industrial Siting Act and the county land use plan. Uinta County is the designated point of receipt for all new goods related to the AI data center, including materials, tools, equipment, supplies and tangible property. The county attorney explained that this is meant to ensure the local sales tax is imposed and received in Uinta County. The developer is responsible for 1) dust abatement, 2) upkeep and repair of county roads 180 and 181, including bridges and culverts, against a preconstruction baseline, and 3) compliance with DarkSky International lighting standards. The county will inspect the project annually for compliance. WyoFile Founder Trenton Thornock also offered to publicly post annual on site water consumption from the site well, starting one year after commissioning and annually for ten years. He also offered to complete and publicly report a computational fluid dynamic heat dispersal analysis within 90 days of first operation. WyoFile Cowboy State Daily, June 17, 2026 KPCW, June 19, 2026 The permit also asks the company to use commercially reasonable practices to retain Wyoming based contractors, vendors and suppliers. WyoFile Separately, and outside the permit, Prometheus announced in January 2026 that it would negotiate a Community Benefit Agreement for every one of its Wyoming sites. Prometheus Hyperscale, January 13, 2026 A company spokesman later described the permit as carrying thirteen safeguards and conditions rather than fifteen. Cowboy State Daily, July 17, 2026 Prometheus Hyperscale on the permit approval | Conditional use permit from the Uinta County Board of Commissioners under county land use rules. The approval followed packed town hall meetings and split public testimony. WyoFile Cowboy State Daily, June 17, 2026 | In effect since the June 16, 2026 approval. The permit is now under challenge. Opponents filed a petition on July 16, 2026 asking the district court in Uinta County to set the permits aside. No ruling had been reported as of July 24, 2026. WyoFile Cowboy State Daily, July 17, 2026 |
| Court challenge to the Uinta County permits | None. This is a risk item rather than an incentive. On July 16, 2026 Christy Katzl, Wilhelm Katzl and Marijke Rossi filed a petition in the district court in Uinta County. It seeks administrative review of the county permits issued to Prometheus Hyperscale. It asks that those permits be set aside. The petition alleges 1) non public planning between company representatives and certain county officials, 2) undisclosed family ties to the founder, and 3) a failure to review grid, water, noise and wildlife impacts. Commissioner Mark Anderson denied the allegations. He said the claimed family relationship is a distant one by marriage. Prometheus President Trevor Neilson said the appeal has no merit. The company said it has no plans to pause work. Cowboy State Daily, July 17, 2026 A buyer relying on the Uinta permits should treat them as under challenge. No ruling had been issued as of August 2, 2026. | Not applicable. This is pending litigation rather than a program. Cowboy State Daily, July 17, 2026 | Pending. The petition was filed on July 16, 2026 and no ruling had been reported as of July 24, 2026. Cowboy State Daily, July 17, 2026 |