The Louisiana General Assembly overwhelmingly passed legislation, which Governor Jeff Landry signed into law, that incentivizes data center investment and development within the state. Louisiana Act No 730 provides a state and local sales and use tax rebate on data center development and related services and equipment that are not paid with state or federal funds, unless structured as a loan.

Eligible recipients of the state and local rebate must have been awarded a “census block” by the Federal Communications Commission’s Rural Digital Opportunities Fund Auction and have been certified by the state’s Department of Economic Development. The certification requirements include the creation of a minimum of 50 “new, direct, and permanent jobs” within the state, along with $200 million or more in new capital investment by the data center owner or developer.

The rebate incentive will apply to capital investments on or after July 1, 2024, and before July 1, 2029. The initial term of the rebate is 20 years with the possibility of a 10-year extension. However, the Department of Economic Development may also terminate the agreement if the recipient is unable to fulfil its obligation.

Data centers play an important role in providing information technology and services for economic and community growth. The expansion of these centers within the state will benefit the region.