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Wyden proposes new taxes on data centers

By Bernie Becker | 08/06/2026 01:20 PM EDT

The Oregon Democrat also suggests blocking data centers from certain federal tax breaks, like the Opportunity Zone program.

Sen. Ron Wyden (D-Ore.) wants a new excise tax on data centers and to block the use of existing tax breaks for their construction. Francis Chung/POLITICO

Sen. Ron Wyden of Oregon, the top Democrat on the Finance Committee, wants to put more of a federal tax framework around data centers.

Wyden proposed on Thursday to strip away tax incentives if they’re applied toward building data centers, arguing that the current construction boom shows that tech companies don’t need the help.

He also wants to impose a low single-digit excise tax that would generate new revenue from data centers, which have prompted concerns around the country about environmental impacts and the rise of artificial intelligence.

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It’s still less aggressive of an approach toward data centers as some of Wyden’s colleagues, such as Sen. Bernie Sanders (I-Vt.), who along with Rep. Alexandria Ocasio-Cortez (D-N.Y.) has proposed a nationwide moratorium on new data center construction.

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