Rural Data Centers Gain New Tax Break as 100-Plus Projects Could Qualify in 2027

2 articles · Updated · WIRED · Oct 4

January 1 marks the start of expanded opportunity-zone tax benefits that could newly cover more than 100 rural data center projects, according to Searchlight research reviewed by WIRED.
The break stems from the One Big Beautiful Bill Act, which widened the program to rural census tracts and could lower financing barriers for capital-heavy hyperscale facilities.
13% of operating US data centers are in rural areas, but about 67% of planned facilities are, Pew found, suggesting the subsidy could reach a fast-growing share of new builds.
Microsoft, Meta and Amazon said they do not use or actively seek the program, though researchers say lower-profile developers may still pursue what one expert called 'essentially free money.'
The expansion is projected to cost $40.9 billion over a decade, while critics argue data centers often bring limited long-term jobs and Senator Josh Hawley has moved to cut them out of opportunity-zone funding.