NEBRASKA CITY, Neb. — Gov. Jim Pillen plans to sign an executive order Monday that will suspend state tax incentives for large-scale data centers and call for a task force to develop additional safeguards for the state’s natural resources and taxpayers.
What changes for residents
The action halts the use of certain incentives that have been offered to data centers seeking to locate in Nebraska. The order also directs state leaders to examine policies related to land, electricity and water use tied to these facilities.
Governor frames move as protection for resources and taxpayers
In announcing the order, the governor’s office said Nebraska’s appeal to data center operators has been tied to available land, low electrical rates and abundant water, alongside the tax incentives the state has provided.
“Nebraska is appealing because of its available land, low electrical rates and abundant water, but we’ve also provided them with tax incentives to locate here, which means they are making a lot of money at same time,” said Gov. Pillen.
The office said the order comes after recent legislation that barred data centers from relying on power built and funded by Nebraska ratepayers.
Immediate steps and expected outcomes
- Suspend state tax incentives for large-scale data centers.
- Create a task force to recommend additional safeguards for natural resources.
- Reassess the state’s process for approving and supporting data center development.
The governor said the review aims to make sure Nebraska is taking appropriate steps to protect its resources while safeguarding taxpayers. The administration will livestream the Monday press conference at 10 a.m., according to the governor’s office.
Context and recent related action
State lawmakers recently approved legislation preventing data centers from depending on power that was built and financed by Nebraska ratepayers. The executive order follows that legislative change and signals further administrative scrutiny of incentives tied to the industry.
| Action | What it does |
|---|---|
| Suspend incentives | Pause state tax incentives for large data centers |
| Task force | Study and recommend resource and taxpayer safeguards |
| Related law | Bars data centers from using power built and funded by ratepayers |
Officials from the governor’s office framed the order as a deliberate step to balance economic development with stewardship of land, water and utility systems. More details about the task force’s membership, timeline and specific incentives affected were not released in the initial announcement.
10/11 NOW will livestream the press conference and viewers can watch on the outlet’s streaming app, the governor’s office said.
Reporting from KOLN was cited in the governor’s announcement.
