Pillen to sign order suspending tax incentives for data center projects in Nebraska

Gov. Jim Pillen plans to sign an executive order Monday that will suspend tax incentives for data center projects in Nebraska.

A Friday news release did not specify whether the suspension is for future projects or whether it will affect incentives already in place. A Pillen spokeswoman could not be reached for comment Friday afternoon.

Pillen said his order also will create a task force to propose additional safeguards to protect the state’s natural resources from data center use.

“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,” Pillen said in a news release. “We need to take a look at our process to make sure we're taking all steps necessary to protect our state's resources as well as our taxpayers.”

The announcement comes as multiple Nebraska counties move to put moratoriums in place on data center development.

On Wednesday, Logan County became at least the 12th county in the state to pass a moratorium. Several other counties are also considering moratoriums.