(KIWA Staff Photo)Iowa (RI) — Data centers have become a flash point around Iowa, with several counties enacting moratoriums as they study potential impacts and regulations.
National Taxpayers Union President Pete Sepp says data centers will power America’s economy for at least the next 25 years, and policymakers should establish consistent, uniform tax policy.
Both candidates for governor have proposed tax changes affecting data centers. Democrat Rob Sand has called for ending state sales-tax exemptions for equipment purchased for data centers. Republican Zach Lahn has proposed higher property taxes on data centers to lower taxes for other property owners.
Sepp says those kinds of proposals create economic distortions.
Sepp says data centers are critical to the operation of other businesses, including agriculture, where farms depend on internet-connected equipment.
The National Taxpayers Union has authored two papers urging policymakers to ensure neutral analysis of data-center proposals, including their impact on electricity and water resources.
The group is also calling for reforms to speed up construction-permit processes and says policymakers should consider allowing data-center companies to build and operate their own electric-power systems. Sepp says data centers can strengthen local property-tax bases and provide both in-person and remote jobs that pay well.
The Technology Association of Iowa estimates about 9,000 people are employed by the roughly 100 data centers currently operating in the state.
