Wyden Targets Data Center Tax Breaks

Sen.

Ron Wyden has proposed changing federal tax treatment for large U.S. data centers by removing or limiting construction incentives and applying a low single-digit excise or gross-receipts tax. The proposal is intended to address local power, water, land-use and workforce pressures, but critics argue it could raise capital costs, slow AI facility investment and reduce local fiscal benefits. The framework remains a draft, with facility definitions, exemptions and revenue effects unresolved.