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Data Centers: New Tools Show Taxpayers Can Win on Water, Energy, Lower Tax Rates

National Taxpayers Union (NTU) on Thursday announced publication of two comprehensive papers outlining how taxpayers can benefit from data centers and how policymakers should approach data center energy and water regulation. The papers are part of an NTU Policy Toolkit that will explore many aspects of the AI and data center debate.

As the construction of data centers across the U.S. increasingly emerges as a political flashpoint, the first analysis shows taxpayers can embrace new development with strategies to lower electricity rates and build local tax bases while using smart approaches on questions of energy and water usage. 

“We are in an age of unprecedented technological development, and, with the right policy approach, it has the potential to pay tremendous dividends to our national economy as well as local communities,” National Taxpayers Union President Pete Sepp said. “Public officials and informed citizens alike will find a wealth of information and analysis from NTU’s policy team as well as outside experts on what could be the most transformative economic and fiscal issue of our time.” 

The second data center analysis is geared toward policy makers, making recommendations on issues such as:

  • The real driver behind electricity prices
  • The need for permitting reform and grid infrastructure upgrades
  • How to increase competition while aligning incentives
  • The right way for policymakers to approach the water-rights question. 

Journalists should bookmark both papers and use them as references in future articles. 

Interviews with authors of both papers are available, including: 

  • Pete Sepp, NTU President
  • Nick Loris, NTU Fellow
  • Debbie Jennings, NTUF Senior Policy Manager
  • Matt Putnam, NTUF Policy Manager 

NTU will publish additional reports with detailed analysis and recommendations on tax policy for data centers this summer. 

National Taxpayers Union is the only free-market organization for taxpayers that unites effective advocacy with useful research about how to limit taxes, spending, and regulation at every level and branch of government—state, federal, administrative, and judicial.