Wyden Proposes Low Single-Digit Tax on Data Centers, Ending U.S. Incentives
Updated
Updated · Fox News · Aug 10
Wyden Proposes Low Single-Digit Tax on Data Centers, Ending U.S. Incentives
3 articles · Updated · Fox News · Aug 10
Summary
Ron Wyden’s new white paper would scrap tax breaks for U.S. data centers and add a low single-digit annual tax on gross receipts, not profits.
Wyden says land use, electricity prices and water consumption justify the move, but his paper concedes defining taxable facilities is difficult and leaves “internet infrastructure” carveouts unclear.
Cloud computing appears likely to remain taxable, and Wyden also suggests taxing data centers built in Earth’s orbit, widening the proposal beyond conventional facilities.
Critics including Americans for Tax Reform say the levy would raise costs for email, cloud storage and social media, while the White House argues faster buildouts are vital to AI growth and competition with China.
The proposal sets Wyden against President Donald Trump’s push to accelerate data center construction, though both sides say they want to limit pressure on power and water costs.