Data Centers’ Next Big Tax Break Is Splitting Congress

Source: Washington Sun
by Jade Lozada

“Across the country, data centers are going up in low-income communities. Fourteen percent of data centers are located within opportunity zones, according to a report from the nonprofit National Community Reinvestment Coalition. Among approved, permitted and under-construction data center projects, 17.3% are in the tax-incentivized zones. In total, 93 proposed data centers and 78 operating data centers are located in an opportunity zone, according to the nonprofit environmental research organization FracTracker Alliance. Data center operators can use opportunity zones to cut down their tax bills like any other business, making the program a potential boon for investors seeking tax benefits to support the industry’s rapid build-out. But political fault lines are emerging over whether data center projects fulfill the purpose of the tax break as investing in opportunity zones becomes more attractive than ever for data center companies.” (11/10/26)

https://archive.is/UEK0l