Nebraska Reins in Data Center Perks Amid Resource Scrutiny
The incentives era is giving way to infrastructure realities. Nebraska’s action highlights how power access and resource impacts now drive where, and whether, large campuses are built.
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A state governor has signed an executive order blocking new data center projects from receiving tax incentives, though existing projects remain unaffected. The decision reflects a national shift where states are prioritizing access to reliable electrical power and protection of water and land resources over tax breaks when deciding whether to approve data centers. This matters because data centers consume significant amounts of electricity and water, and communities are increasingly questioning whether their local grids can support rapid AI infrastructure growth without burdening existing residents and ratepayers. Similar actions are already underway in other states, with permit freezes, tax rollbacks, and utility mandates emerging as political responses to concerns about how data center energy demands affect communities and grid capacity.
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To power its new West Texas data center, Amazon is investing in the construction of a new power plant that could be one of the largest single producers of greenhouse gases in the US, according to the New York Times. The new gas-burning plant in Pecos County, Texas has received significant investment from Amazon and, at least initially, would not be connected to the state's power grid. Instead, its 35 natural-gas turbines would primarily deliver its 7.65 gigawatts of electricity
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