Senator Ron Wyden of Oregon has proposed a new tax framework for data centers that aims to change their current tax landscape. The proposal includes limiting certain tax deductions and introducing a gross receipts tax at a low single-digit rate. This tax would also apply to data centers located in space, as envisioned by entrepreneurs Elon Musk and Jeff Bezos. Exemptions are included for internet infrastructure, corporate IT departments, and small local operators.
Critics, including the conservative group Americans for Tax Reform, argue that the proposal could increase costs for internet services, dubbing it an 'internet tax.' Wyden's office has not responded to these criticisms.
Currently, data centers benefit from various tax incentives in 38 states, including sales tax waivers on equipment and exemptions for electricity usage. Darrell West from the Brookings Institution commented that the proposed tax signals to tech companies the need for greater responsibility and contribution to community costs, although he noted it does not address the energy consumption issues associated with data centers.
In related news, Energy Secretary Chris Wright reported that oil exports from the Arabian Gulf region have surpassed pre-war levels, with nearly 9 million barrels per day flowing through the Strait of Hormuz. However, this claim has been met with skepticism from energy analysts who cite lower estimates.
Additionally, Chicago Mayor Brandon Johnson has called for a moratorium on new data centers to establish regulations addressing air pollution and noise, while the United Nations reported an increase in the frequency and intensity of heat waves globally.