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Josh Hawley moves to block data centers from using Opportunity Zones tax breaks
The Missouri Republican plans to introduce a bill barring data centers from accessing tax incentives created in 2017. Fox News Politics reported that Hawley says major tech companies have turned the program into corporate welfare.
Sen. Josh Hawley of Missouri is preparing legislation aimed at cutting off a tax advantage that he says large technology companies are using to expand data centers across the United States. According to Fox News Politics, the bill would specifically prevent those facilities from benefiting from Opportunity Zones incentives.
The program was enacted by Congress as part of the 2017 tax law passed during Donald Trump’s first term, with the stated goal of encouraging investment in low-income or neglected areas. Fox News Politics reported that the tax break was made permanent last year and, while it was not expressly designed for data centers, it has become a way for tech companies to defer, reduce or even eliminate taxes on gains tied to investments in those zones.
Hawley told Fox News Digital that Opportunity Zones were intended for low-income communities, housing and businesses, and argued that data center developers have found a way to tap into that money. He characterized the arrangement as a form of corporate welfare that should not be available to wealthy companies.
Figures cited by Fox News Politics from the Department of Housing and Urban Development show there are 8,746 Opportunity Zones nationwide, with just under half located in rural areas where major tech firms have focused data center development. The outlet also cited a National Community Reinvestment Coalition report saying 14% of all data centers are in Opportunity Zones, and that a little more than 17% of permitted, approved or under-construction data center projects are also located there.
Hawley’s push comes amid a broader congressional debate over artificial intelligence and the infrastructure behind it. Fox News Politics said the senator is also calling for guardrails on AI and for consumers to be allowed to sue technology companies if their personal data is used without consent.
In that context, the outlet noted that Chuck Schumer convened a series of meetings three years ago with tech executives, including Elon Musk and Mark Zuckerberg, to discuss what AI legislation might look like. Hawley argued, according to Fox News Politics, that little meaningful legislative action followed and criticized the political influence of tech leaders in Washington.
Sources
About this piece. Written by El Notero with AI assistance, from reporting published by the outlet cited above. El Notero did no original reporting on this story.
