Senate Finance panel’s top Dem proposes excise tax on new data centers

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Sen. Ron Wyden, D-Ore., is seen during votes in the U.S. Capitol on Wednesday, June 17, 2026. Tom Williams/CQ-Roll Call, Inc via Getty Images

ByAlexandra Kelley,
Staff Correspondent, Nextgov/FCW

August 10, 2026 05:12 PM ET

Oregon Sen. Ron Wyden’s draft white paper calls for a new tax on hyperscalers and data center operators.

A new draft white paper from a top Senate Democrat proposes tax code updates that would shift incentives for data center construction.

The paper, released on Aug. 6 by Sen. Ron Wyden, D-Ore. — ranking member of the Senate Finance Committee — proposes changing the incentives that could spur more data center construction amid the national boom in a bid to offset consumer burdens associated with more data centers.

Wyden’s framework hinges on two changes to existing tax code: removing the current tax incentives that apply to data center construction and...

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