Data centers have become a flash point around the state, with some Iowa counties enacting moratoriums. Both candidates for governor have proposed tax changes for data centers. National Taxpayers Union President Pete Sepp says data centers will power America’s economy for at least 25 years and policymakers should establish consistent, uniform tax policy for data centers.
Rob Sand, the Democrat running for governor, has called for ending the state sales tax exemptions for the computers, servers and other equipment purchased for data centers. Zach Lahn, the Republican candidate for governor, has proposed higher property taxes on data centers, to try to lower taxes for other property owners. Sepp says those kinds of proposals lead to economic distortions.
Sepp says data centers are critical to the operation of other businesses, including farming operations that depend on internet access to run equipment.
The National Taxpayers Union has authored two papers which call on policymakers to ensure there’s a neutral analysis of data center developers and the impact the facilities may have on electricity and water resources.
The National Taxpayers Union is calling for reforms to speed up the process of construction permits. The group says policymakers should consider letting data center companies build and operate their own electric power systems. Sepp says data centers can lift the local property tax base to healthy levels and provide in-person and remote jobs that pay well. The Technology Association of Iowa estimates about 9.000 people are currently employed by the 100 or so data centers already operating in the state.
