Nebraska Governor Jim Pillen has signed an executive order stopping state incentives for data centers.
“Our people, our land, and our water,” Pillen emphasized. Data centers have brought concerns about water and electric use.
Several Nebraska counties have said timeout to data centers, issuing moratoriums. Pillen made it clear this is not a ban on centers, but will suspend the practice of allowing them to apply for state incentives.
“I’m not here talking about a moratorium on data centers. We’re simply talking about making sure we do what’s best for all Nebraskans, that we do what’s best for our land and our water,” he said.
State Senator Mike Jacobson of North Platte says it’s a prudent move, arguing incentives are not currently needed.
“They have plenty of money to come locate here and there’s no strong competitive pressures right not to get them to come locate here. It can stand on its own,” he said.
In an interview with the Rural Radio Network, Jacobson said he and the governor are both “agnostic” about data centers, saying it’s a matter for local control.
“The governor’s being agnostic. There’s already a lot of data centers here today now. He’s not going to go out and incent them to be here but if they choose to come here and they meet local ordinances that are set up by counties and cities, that they’re welcome to come but they have to follow the rules,” Jacobson said in an interview.
Jacobson said Pillen was instrumental in bringing together the Department of Natural Resources with the Department of Environmental Quality into the Department of Water, Energy, and Environment.
“So it’s water quality and quantity,” Jacobson said of the state’s concern.
He said Sarpy County “has led with their chin” when it comes to data centers.
Several Nebraska counties are exploring moratoriums on data centers while researching the electrical and water demands. Jacobson said that’s a local matter and not something he’s weighing in on. He said what needs to be included in the conversation is the state’s property tax climate, as he said data centers can expand the local tax base and reduce the property tax demands on ag landowners and homeowners.
“I’ve been out here saying this for some time. I’m not out promoting data centers but I think we need to be mindful and thoughtful about what we do here,” he said, pointing to his community of North Platte. Lincoln County’s gross tax base is $6.6 billion of taxable property.
“If you have a $3 billion data center located in the county, you’ve added another 50% to your tax base,” he said. “You can significantly increase your property tax base… and that’s going to lower property taxes for everyone else in the county.”
During a news conference, Pillen said his executive order would specifically end the practice of allowing data centers to quality for incentives through ImagiNE Nebraska Act. In addition, Pillen is creating a task force to create new recommendations to lawmakers.
Pillen also said it’s important to ensure Nebraska has enough electrical generation capacity to meet the state’s needs, especially as Nebraska relies on a unique public power system with locally controlled utilities.
