Data Center Development & Protecting Nebraska Resources
NEBRASKA, August 21 - Data Center Development & Protecting Nebraska Resources
By Governor Jim Pillen
August 21, 2026
Nebraska is open for business!
Not only do we want homegrown companies to stay, but we also want others to come, plant their roots and grow. For that to happen, we must have a strategic tax incentive policy that supports new venture opportunities. I’ve been clear – we can no longer provide tax breaks to companies that are takers, not givers, and to those that don’t share our values.
Data centers are a delicate issue right now. I fully support the need for computational services that enable us to stay ahead in the race for artificial intelligence as well as the defense of our nation. To support those initiatives, data centers are a necessity. However, we cannot foot the bill for them. These billion-dollar companies are well-positioned to pay their own way. Not only that, but we also can’t afford projects that deplete our natural resources. That’s another cost our state cannot bear, now or in the future.
We have made significant strides in creating necessary restrictions. This session, I signed LB1261 which requires that entities create their own electricity. This landmark behind-the-meter legislation ensures that increased power use is not paid for by hardworking Nebraskans. It also allows excess electricity to be sold back to the grid, further supporting power needs and keeping rates low.
A newly signed executive order formalizes the pause I put on data center development when I first entered office. Companies won’t be able to access tax incentives through the ImagiNE Act. It also calls for the creation of a task force to study the impact of data centers, so that we’re not giving the farm away in the form of our land, water and electricity.
Mind you, this is not a complete ban on data centers. I know some communities would prefer that, but I strongly believe in free enterprise and the ability of local communities to make decisions best suited to those who live there. That said, going forward those projects must meet the guardrails spelled out in that order before going into business.
The task force I mentioned will also be instrumental in providing information that will allow my office, in collaboration with the Legislature, to draft legislation that provides further protections when it comes to data centers. At the very least, it will involve imposing additional taxes. After all, data companies should be willing to invest in the communities where they operate and help support the infrastructure and resources that allow them to be there.
These moves should help guide our decisions around data centers, but without allowing those companies a free ride to Nebraska.
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