Gallego urges state to roll back data‑center tax incentives, warns of land‑use and energy tradeoffs
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Summary
Mayor Kate Gallego criticized state tax incentives for data centers, saying they concentrate large electric demand, produce few long‑term jobs and risk crowding out other industries; she called on the state legislature to change incentives and the council to set local guidelines.
Mayor Kate Gallego said that while data centers serve a purpose, their current growth poses risks for the city’s land use and energy future.
“Data centers serve a purpose, but they also pose risks and take up so much energy that it threatens the future of other kinds of businesses,” Gallego said. She added that most of the utilities’ prospective queue of new industrial electric use is made up of data centers, and said they ‘‘produce a lot of heat and noise, but only bring a few long term jobs.’’
Gallego urged smarter land‑use decisions and asked the state legislature to roll back what she described as antiquated tax incentives for new data centers. She said city council and the mayor are working on guidelines to support growth that is higher value for residents.
The mayor did not cite a specific bill or statutory citation in the address and did not announce a city ordinance; she made a policy appeal to state lawmakers and described local guideline work in progress.
