Governor Jim Pillen has signed an executive order temporarily removing state economic development incentives for new large-scale data centers while Nebraska develops a long-term strategy for managing the industry’s impact on electricity and water resources.
The order does not stop data center construction, but it blocks new projects from receiving incentives through the Imagine Nebraska Act. Pillen says Nebraska’s low-cost public power system and abundant water are among the state’s greatest assets and must be protected as electricity demand grows.
The executive order also creates a Data Center Task Force and directs state agencies to review future proposals and recommend policies that balance economic development with protecting the state’s power grid and water supply. Pillen says the effort complements Nebraska’s new behind-the-meter power law, which encourages private investment in electric generation without shifting costs to utility customers.
State Sen. Mike Jacobson backed the move, saying incentive programs should be reserved for projects that truly need them, arguing that major data center developers can afford to build without taxpayer-supported incentives.