Large AI data centers would face incentive limits after final rules

Covered data centers would be ineligible for federal financial help to build or operate their facilities. Coverage generally requires a facility or combined campus with at least 100 megawatts of current or planned contracted peak power demand. At least half its installed chips that speed up computing must be AI chips used to train, fine-tune, or run AI. Federal rules could adjust the thresholds for dense AI facilities or exclude very small computing sites near those thresholds. The ban would start the day after final rules for carrying out the incentive tax are issued.

The person receiving ownership’s financial benefits and bearing most related costs would owe the federal tax. Coverage generally requires a facility or combined campus with at least 100 megawatts of current or planned contracted peak power demand. At least half its installed chips that speed up computing must be AI chips used to train, fine-tune, or run AI. Federal rules could exclude very small computing sites near the coverage thresholds. The tax would match incentives received during the tax year and begin the day after final implementing rules are issued.