Nicholas Miller

And I think we see that baked into the structure of the incentives.

And so in a few states, including Illinois, they require that the data centers become either carbon neutral or that they receive some sort of green building certification within two years or five years of starting their operations.

And then I think on the incentive front, just incentives themselves, we're actually seeing the most movement around the energy piece.

So in Minnesota, in June, they became one of the first states that we're aware of that actually took away part of the incentive for data centers.

Minnesota no longer exempts the large data centers, the hyperscale data centers.

from the sales tax exemption for electricity only.

And last summer in Georgia, the legislature actually passed a bill that would pause their data center incentives across the board for two years to study the data center energy use.

And that measure ended up being vetoed by the governor.

But we've seen movements in some other states, including Washington and Maryland, where they want to very closely study the energy piece as well.

So I think we're going to see states take a hard look at the energy consumption by these data centers and potentially restructure their incentives accordingly.