Rural Data Centers Are in for a Big Federal Tax Break

Oct 4, 2026

Title: Rural Data Centers Are in for a Big Federal Tax Break

URL Source: https://www.wired.com/story/rural-data-centers-are-in-for-a-big-federal-tax-break/

Published Time: 2026-10-04T06:00:00.000-04:00

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Oct 4, 2026 6:00 AM

Rural Data Centers Are in for a Big Federal Tax Break

Under the One Big Beautiful Bill Act, data center projects in rural areas could be eligible for major tax benefits starting next year. Some hyperscalers do not seem eager to take the free cash.

![Image 3: Image may contain Donald Trump Adult Person Face Head Money Clothing Formal Wear and Suit](https://media.wired.com/photos/6abfbb7863cea41649272752/master/w_2560%2Cc_limit/100226-Power%2520Play.jpg)

Photo-Illustration: Wired Staff; Getty Images

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Don't Just Keep Up. Get Ahead

[![Image 8: Amazon Says It’s No Longer Using NDAs for Data Centers](https://media.wired.com/photos/6abf96a21c08425a2aa5099d/16:9/w_640%2Cc_limit/undefined)](https://www.wired.com/story/amazon-says-it-is-going-to-stop-using-ndas-for-data-centers/#intcid=_wired-article-bottom-recirc-bkt-a_948a7a6f-6df8-425f-8508-88cd4bade8bc_closr_fallback_text2vec1)

[Amazon Says It’s No Longer Using NDAs for Data Centers](https://www.wired.com/story/amazon-says-it-is-going-to-stop-using-ndas-for-data-centers/#intcid=_wired-article-bottom-recirc-bkt-a_948a7a6f-6df8-425f-8508-88cd4bade8bc_closr_fallback_text2vec1)

The company announced it has stopped using secret agreements with county officials and acknowledged that community backlash is leading to data center moratoriums across the country.

Molly Taft

[![Image 9: The Data Center Backlash Should Also Be a Climate Reckoning. It Isn’t Yet](https://media.wired.com/photos/6ab67c97580ac2113d437689/16:9/w_640%2Cc_limit/undefined)](https://www.wired.com/story/data-center-backlash-climate-reckoning/#intcid=_wired-article-bottom-recirc-bkt-a_948a7a6f-6df8-425f-8508-88cd4bade8bc_closr_fallback_text2vec1)

[The Data Center Backlash Should Also Be a Climate Reckoning. It Isn’t Yet](https://www.wired.com/story/data-center-backlash-climate-reckoning/#intcid=_wired-article-bottom-recirc-bkt-a_948a7a6f-6df8-425f-8508-88cd4bade8bc_closr_fallback_text2vec1)

Climate groups are latching onto the data center opposition movement, but it remains to be seen if they can get people to care about the facilities’ impact on the atmosphere.

Molly Taft

[![Image 10: Residents Harmed by Oil Drilling May Soon Receive Reparations Under New California Law](https://media.wired.com/photos/6aad6cbb8ffbfab4b483eaae/16:9/w_640%2Cc_limit/undefined)](https://www.wired.com/story/residents-harmed-by-oil-drilling-may-soon-receive-reparations-under-new-california-law/#intcid=_wired-article-bottom-recirc-bkt-a_948a7a6f-6df8-425f-8508-88cd4bade8bc_closr_fallback_text2vec1)

[Residents Harmed by Oil Drilling May Soon Receive Reparations Under New California Law](https://www.wired.com/story/residents-harmed-by-oil-drilling-may-soon-receive-reparations-under-new-california-law/#intcid=_wired-article-bottom-recirc-bkt-a_948a7a6f-6df8-425f-8508-88cd4bade8bc_closr_fallback_text2vec1)

While lawmakers iron out the details, advocates hope this approach could serve as a model for addressing histories of environmental hazards often concentrated in Black and low-income neighborhoods.

[![Image 11: AI PACs Have Dumped Nearly $1 Million Into an Obscure Senate Race](https://media.wired.com/photos/6aa820614ea2a5a4d9e48bf8/16:9/w_640%2Cc_limit/undefined)](https://www.wired.com/story/ai-pacs-have-dumped-nearly-1-million-into-an-obscure-senate-race/#intcid=_wired-article-bottom-recirc-bkt-a_948a7a6f-6df8-425f-8508-88cd4bade8bc_closr_fallback_text2vec1)

[AI PACs Have Dumped Nearly $1 Million Into an Obscure Senate Race](https://www.wired.com/story/ai-pacs-have-dumped-nearly-1-million-into-an-obscure-senate-race/#intcid=_wired-article-bottom-recirc-bkt-a_948a7a6f-6df8-425f-8508-88cd4bade8bc_closr_fallback_text2vec1)

The reliably Republican South Dakota senate seat has an incumbent on the ballot. But PACs associated with AI labs and investors have already spent more money on the race than actual residents have.

Hugo Lowell

[![Image 12: AI Agents Are Thirsty for Power](https://media.wired.com/photos/6aa2cf4ca722d0b47513425c/16:9/w_640%2Cc_limit/undefined)](https://www.wired.com/story/ai-agents-are-thirsty-for-power/#intcid=_wired-article-bottom-recirc-bkt-a_948a7a6f-6df8-425f-8508-88cd4bade8bc_closr_fallback_text2vec1)

[AI Agents Are Thirsty for Power](https://www.wired.com/story/ai-agents-are-thirsty-for-power/#intcid=_wired-article-bottom-recirc-bkt-a_948a7a6f-6df8-425f-8508-88cd4bade8bc_closr_fallback_text2vec1)

Silicon Valley is shifting away from chatbot queries toward a future filled with resource-intensive agentic AI—and it's driving the data center buildout.

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[![Image 13: A Startup Wants to Power Data Centers With ‘Supercritical’ Carbon Dioxide](https://media.wired.com/photos/6ab26a1d5108d82b5616e7c8/16:9/w_640%2Cc_limit/undefined)](https://www.wired.com/story/startup-power-data-centers-supercritical-co2/#intcid=_wired-article-bottom-recirc-bkt-a_948a7a6f-6df8-425f-8508-88cd4bade8bc_closr_fallback_text2vec1)

[A Startup Wants to Power Data Centers With ‘Supercritical’ Carbon Dioxide](https://www.wired.com/story/startup-power-data-centers-supercritical-co2/#intcid=_wired-article-bottom-recirc-bkt-a_948a7a6f-6df8-425f-8508-88cd4bade8bc_closr_fallback_text2vec1)

The technology could strap onto existing gas turbines and make them more efficient—but it wouldn’t do away with their emissions entirely.

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[The Census Bureau Is Overrun With Staffers From a MAGA Think Tank](https://www.wired.com/story/a-trump-aligned-think-tank-focused-on-voting-rights-has-taken-over-the-census-bureau/#intcid=_wired-article-bottom-recirc-bkt-a_948a7a6f-6df8-425f-8508-88cd4bade8bc_closr_fallback_text2vec1)

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The left wants AI regulation. They just can’t agree on what it should look like or how concerned they should be.

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Even if big AI companies agree to a pause, ensuring that nobody tries to sneak ahead could prove tricky.

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Even with mounting concerns about AI models going rogue, legislation appears unlikely, and the White House is outright opposed to oversight.

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[![Image 19: Lawmakers Want States to Crack Down on Flock Cameras—or Pay the Price](https://media.wired.com/photos/6aa837d0a9892d5eba997e3d/16:9/w_640%2Cc_limit/undefined)](https://www.wired.com/story/lawmakers-want-states-to-crack-down-on-flock-cameras-or-pay-the-price/#intcid=_wired-article-bottom-recirc-bkt-a_948a7a6f-6df8-425f-8508-88cd4bade8bc_closr_fallback_text2vec1)

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A new bipartisan effort in Congress to rein in automated license plate readers takes a page from the national drinking age: Comply, or risk losing federal highway funding.

Paresh Dave

[![Image 20: UNDERSTAND ROBOTS, HACKING, AI AGENTS, WHAT'S NEXT Get clarity. Because what happens next changes everything. <del>$4</del> $2/month for 1 year CTA:GET DIGITAL ACCESS](https://media.wired.com/photos/6aaa989bb9f3b2223fc0f627/original/pass/Wired_App_Desktop_Acquistion_01d.gif?format=original)](https://www.wired.com/v2/offers/wira01045?source=Site_0_JNY_WIR_DESKTOP_FOOTER_0_US_ACQ_SEGMENT_SOPHI_CONTROL_JULY_2026_ZZ)

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Rural Data Centers Are in for a Big Federal Tax Break

Rural Data Centers Are in for a Big Federal Tax Break

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Rural Data Centers Are in for a Big Federal Tax Break

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