Investigate and Improve Locally Specific Terms

Where special economic zones do exist, states can update the locally specific terms or requirements to give full approval power to localities over data center developments. This would allow localities to use the requirements of special economic zones to impose or negotiate conditions, accountability standards, or community benefits on data center developers, such as through a payments in lieu of taxes (PILOT) agreement.

Note: While this can potentially mitigate harm, revenue generated from PILOT agreements is significantly less than what would be generated from full taxation, so states should instead force data centers to pay fair taxes and deprioritize special economic zones, including those with PILOT programs.