Governor Jim Pillen Ends Data Center Tax Subsidies

Governor Jim Pillen is scheduled to sign an executive order on Monday, July 21, 2026, to terminate taxpayer subsidies for large-scale data centers across Nebraska. The order suspends state tax incentives and creates a task force to develop safeguards aimed at protecting natural resources from the high demands of data center operations.

This move follows previous state legislation that forbids data centers from utilizing power infrastructure built and funded by Nebraska ratepayers. Pillen argued that the measure is necessary because data centers profit from the state's land, low electrical rates, and water while receiving public incentives.

The governor's office announced the order via a press conference in Lincoln, emphasizing the need to evaluate state processes to ensure the protection of taxpayers and local resources.