States Reassess Data Center Tax Incentives Amid Resource Concerns

In separate developments, government officials in Nebraska and Illinois indicated a move away from incentivizing data center development. On July 15, 2026, Nebraska Governor Jim Pillen signed an executive order ending data centers' access to tax incentives under the state's ImagiNE Nebraska Act. On July 23, 2026, Illinois Governor JB Pritzker, speaking at the Aspen Ideas climate conference, discussed disincentivizing data centers rather than offering them financial incentives. In Nebraska, the executive order was signed with Senator Mike Jacobson and state economic development officials present, according to the Governor's office. The stated purpose of the Nebraska order was to allow the state to assess the benefits of data center projects against their resource impacts before determining future incentive eligibility. Details of the specific resource impacts prompting the decision, such as energy or water usage, were not specified in the available reporting. The Illinois report did not include specifics on what policy mechanism Pritzker proposed for disincentivizing data centers, nor whether any formal action, such as legislation or executive action, has been taken. The current status of Nebraska's executive order is that it has been signed and is in effect, ending access to ImagiNE Nebraska Act tax incentives for data centers. In Illinois, Pritzker's comments at the Aspen Ideas conference represent a stated policy direction rather than a confirmed enacted measure, and no further action has been reported. It remains unresolved whether Illinois will pursue formal legislative or executive steps to disincentivize data centers, and what specific criteria Nebraska will use going forward to evaluate future data center projects.