New tax on data center power consumption takes effect slowly

Energy consumption tax takes effect slowly

DATA CENTERS

New tax on data center power consumption takes effect slowly

The State Corporation Commission told the Senate budget committee on Tuesday that the new data center electricity consumption tax should have generated about $100 million in new revenue in the first two months, but the state ultimately collected about $26 million for power use in July and August. The estimates weren't wrong, but the timing was off.