Federal Reserve (FED) · Donald Trump · Wired
Rural Data Centers Are in for a Big Federal Tax Break
Compiled by KHAO Editorial — aggregated from 1 source. See llms.txt for citation guidance.
◌ Single Source
Welcome back to Power Play!
Key facts
- Searchlight used a conservative database of under 700 data center projects that are planned or under construction to compile its research; other datasets put the number of data centers in development
- On January 1, a new tax windfall will kick in that could benefit scores of rural data center projects—all thanks to the One Big Beautiful Bill Act
- Separate research from Pew found that while 13 percent of operating data centers are located in rural areas, a majority of planned facilities—around 67 percent—are going rural
- If you’ve got a question or thought for the column, feel free to shoot Molly an email at [email protected] or reach them securely on Signal at mollytaft.76
Summary
On January 1, a new tax windfall will kick in that could benefit scores of rural data center projects—all thanks to the One Big Beautiful Bill Act. Starting next year, projects sited in tracts of rural land across the country will be newly eligible for a set of specific corporate tax benefits under a program expanded by the bill. But experts warn that the results for rural communities could be mixed. “Right now, the only requirement to get the benefits is capital investment,” says Emily Kraschel, a tax policy analyst at the Searchlight Institute, a public policy think tank.