Wyden Proposes Low Single-Digit Data Center Tax as Democrats Split Over $130 Billion AI Buildout
Updated
Updated · NOTUS · Aug 6
Wyden Proposes Low Single-Digit Data Center Tax as Democrats Split Over $130 Billion AI Buildout
3 articles · Updated · NOTUS · Aug 6
Summary
Ron Wyden plans to unveil a low single-digit excise tax on data center revenues and end several tax breaks, including opportunity-zone benefits and a real-estate trust incentive.
The Senate Finance Committee's top Democrat says the plan answers rising backlash over AI-driven data center expansion, local disruption and fears of worker displacement, while aiming to raise billions without halting U.S. construction.
Wyden's approach diverges from Bernie Sanders and Alexandria Ocasio-Cortez, who want a moratorium on new data centers, and from other Democrats pitching taxes on AI tokens, energy use or local-rights rules.
The fight is growing as data center construction costs jumped an estimated $130 billion in the past year, more than a dozen states have weighed moratoriums, and Gallup found 7 in 10 Americans oppose centers near them.
That mix of public anxiety, industry resistance and Democratic infighting is turning AI infrastructure into an early 2028 political flashpoint.