GOP leaders warn data-center tax clawback, energy rules could threaten rural revenue and jobs

Republican lawmakers warned that proposals to claw back tax exemptions for data centers or add energy-related taxes would harm communities that benefit from data-center property taxes and construction investment.

"We should be...looking at energy diversity and finding a way to allow those entities to come into the state of Washington and create jobs," said Rep. Peter Abarno, who said additional taxes or regulations on energy use could discourage data centers from locating or expanding in the state. He cited the economic benefits data centers can bring to communities such as Quincy.

Sen. Chris Gildan and others said removing exemptions would reduce property tax revenue that funds schools, libraries, fire districts and other local services. "You could have $500,000,000, $1,000,000,000... several billion dollars worth of assets that pay property taxes," Gildan said, warning about the revenue loss to rural locales.

Lawmakers also debated whether data centers are the main driver of recent utility-rate increases. Rep. April Connors cited testimony that Puget Sound Energy filed for a 30% rate increase and, referencing a utility representative, said that filing is driven by state policies rather than data centers. "This has nothing to do with data centers, and...I think a lot of people like to talk about that data centers are causing all of these rate increases across Washington state. In this case, it's just not true," Connors said.

Abarno said policymakers should balance energy-policy goals with attracting investment and urged targeted solutions over broad new taxes that could deter high‑asset facilities.

The call did not include Democratic lawmakers, industry representatives or utility regulators; comments reflect GOP perspectives and leave the net economic effect of any specific bill unresolved.