Rural Data Centers Are in for a Big Federal Tax Break

Starting January 1, a new tax benefit from the One Big Beautiful Bill Act will support rural data center projects by offering corporate tax incentives. This change aims to encourage investment in rural areas, particularly for large-scale data centers. However, experts like Emily Kraschel from the Searchlight Institute caution that while these projects may bring investment, they might not necessarily create local jobs or economic growth, unlike traditional factories. The opportunity zone program, initially proposed during the Trump administration, was expanded to attract more rural investments. Research by Searchlight, reviewed by WIRED, identified over 100 potential data center projects in rural areas that could benefit from these tax incentives. While only 13% of current data centers are in rural areas, 67% of planned facilities are moving there, indicating a significant shift. QUESTION: How might the increase in rural data centers impact local communities and economies in the long term?