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Regbase

The Data Center Divide

Valley County

For Valley County, see Idaho’s statewide laws and regulations below. No additional county-specific measures are listed in our research.

Mixed Data Center Policies

Idaho offers qualifying large data centers tax breaks, but requires substantial investment and job creation, with repayment if targets are missed. Large power users must cover infrastructure costs, while new facilities starting construction after July 1, 2026, face limits on consumptive cooling-water use.

Incentives

Tax benefits

Introduces a sales and use tax exemption for eligible server equipment and new data center facilities for qualifying data-center businesses and their installing or building contractors.

Idaho HB 521 (2020)
Water and electricity

Approves a data-center electricity service contract that provides Brisbie credits for excess energy generation and renewable capacity contributions, subject to the order’s pricing and eligibility conditions (“Brisbie receive payments for capacity avoidance”).

Idaho Public Utilities Commission Order 35777 (2023)

current law · Statewide
Exempts qualifying data centers from sales and use taxes on eligible equipment and new facilities if they invest at least $250 million and create 30 jobs, and excludes that exempt construction from the property-tax new-construction roll.Idaho HB 521 (2020)

What this means

The measure gives qualifying data centers a sales-tax exemption for new facilities and eligible server equipment, lowering the cost of building and equipping them (exemption for eligible equipment and facilities). The benefit is limited to businesses investing at least $250 million and creating at least 30 qualifying jobs; if they miss those targets, they must repay the waived taxes (investment and job requirements). Overall, it is a substantial incentive for large projects, but the high eligibility bar keeps it from benefiting every data center.

People behind it

  • Identified as the committee introducing HB 521.

  • Authorized to administer and enforce the data-center tax exemption and related certification requirements.

Restrictions & requirementsHide restrictions & requirements6

  • The tax exemption is limited to qualifying business entities whose sole purpose is operating a data center, and to contractors installing eligible equipment or building qualifying facilities. Property that received Idaho reimbursement incentives is excluded. Eligibility and incentive exclusion

  • A qualifying business must make at least $250 million in aggregate capital investments in one or more Idaho data centers within the first five years after construction begins. Investment threshold

  • The business must create and maintain at least 30 new data-center jobs within two calendar years after operations begin. The jobs must be nonseasonal, full-time, pay an average weekly wage at least equal to the county average, and exceed the business’s prior 24-month high for Idaho full-time employees; relocating an existing Idaho job does not count. New-job requirements

  • If the business fails to meet the investment or job requirements within the specified periods, it must repay the sales or use taxes that would otherwise have been due. Repayment requirement

  • To qualify as a data center, the Idaho facility must have uninterruptible power supplies, generator power, or both; sophisticated fire-suppression and prevention systems; and enhanced physical security with restricted access. Facility requirements

  • The exemption covers new eligible server equipment used in an Idaho data center solely for specified data, transaction-processing, information-technology, or computer-collocation services; it does not cover equipment outside those conditions. Eligible equipment and use

Benefits & exceptionsHide benefits & exceptions2

  • Sales and use tax exemption for eligible server equipment and new data center facilities, including associated construction purchases. It is available to qualifying businesses that certify at least $250 million in Idaho data-center investment within five years after construction begins and create and maintain at least 30 qualifying new jobs within two years after operations begin. The exemption is provisional during investment; taxes are due if the requirements are not met. Property receiving Idaho reimbursement incentives is excluded. The exemption applies to eligible server equipment and new data center facilities.

  • Excludes from the new-construction roll property granted the bill’s sales and use tax exemption. This is not a general property-tax exemption: the assessor guidance says the building’s assessed value may still be included on the roll, and the buildings and equipment remain subject to property tax. The new-construction roll excludes property granted the sales and use tax exemption.

Sources

current law · Statewide
Requires data centers adding at least 50 megawatts of electricity demand to get utility commission approval and cover the costs and risks of serving that demand.Idaho H911 (2026)

What this means

For data centers adding at least 50 MW of demand, the measure requires utility contracts to be approved before service begins, which can add paperwork and delay. It also requires the data center to cover its share of necessary power infrastructure and provide financial security, creating meaningful costs but not preventing development; these requirements apply to qualifying large loads.

People behind it

  • Identified as the committee introducing House Bill 911.

  • House floor sponsor of the bill.

  • Senate floor sponsor of the bill.

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  • Administers the measure by reviewing and approving or denying large-load service contracts, issuing implementation guidance, and resolving disputes.

Restrictions & requirementsHide restrictions & requirements6

  • The requirements apply to a new or modified service entrance, or use of an existing one, if contracted demand increases by at least 50 MW within any consecutive 60-month period and the utility service contract was entered into on or after July 1, 2026. 50 megawatts or more

  • A qualifying load cannot receive utility service without a commission-approved service contract. The utility must file the contract before service begins, include a no-harm test and supporting information, and the commission has up to 270 days to approve or deny it. prior to providing service

  • Contract approval requires the utility to show that service quality and reliability for its other customers are reasonably expected to be maintained, and that the large load will fund its full cost of service, including its share of qualifying generation, transmission, substation, and distribution investments. responsible for funding its full cost of service

  • Approval is conditioned on the load providing financial security, in a commission-approved form and amount, sufficient to protect the utility and its other customers against specified stranded or unrecoverable costs and investments. furnishing financial security

  • A qualifying load cannot avoid the requirements by splitting demand among multiple service entrances or adding connections, meters, or entrances for what is otherwise a single entity or enterprise. shall not change its status

  • In each utility general rate case, the commission must review the approved contract’s rates, charges, and cost-recovery mechanisms, and may prospectively adjust them to ensure the load is assigned its full cost of service. In each general rate case

Benefits & exceptionsHide benefits & exceptions1

  • Creates a defined route for a qualifying data center to obtain utility service for new or expanded load: an increase of at least 50 MW within 60 months can be served under a commission-approved contract, and the commission must decide within 270 days. Approval depends on demonstrating expected service quality and reliability and that the load funds its full cost of service; financial security is also required. The commission shall review and approve or deny

Sources

current law · Statewide
Prohibits data centers beginning construction on or after July 1, 2026, from using water consumptively for cooling unless it comes from a municipal or district water system.Idaho H 895 (2026) — Data center water cooling restrictions

What this means

New data centers beginning construction on or after July 1, 2026, generally cannot use water consumptively for cooling unless it comes from a specified water system (cooling-water limitation). This is a meaningful design and water-supply constraint, but it is not a ban because non-consumptive cooling and qualifying water supplies remain options.

People behind it

  • Introduced House Bill 895; the bill is listed as being by the committee.

  • House floor sponsor; presented the bill in committee.

  • Senate floor sponsor.

Restrictions & requirementsHide restrictions & requirements2

  • Data centers that begin construction on or after July 1, 2026, may not use water consumptively for cooling unless the water comes from a municipal, water district, or water and sewer district system. The statute’s restriction

  • When evaluating a new water appropriation or transfer of existing water rights for a data center, the water resources director must consider the bill’s findings that data-center water use conflicts with local public interest and conservation; the bill also finds it will adversely affect a local economy when the place of use is outside the watershed or local area where the water originates. The bill directs consideration of these findings.

Benefits & exceptionsHide benefits & exceptions2

  • A data center that begins construction on or after July 1, 2026, may use water consumptively for cooling if the water is supplied by a municipal, water district, or water and sewer district water system.

  • The restriction applies only to data centers beginning construction on or after July 1, 2026; data centers that began construction earlier are outside this section’s restriction.

Sources

current law · Statewide
Approves the Brisbie electric-service agreement and Tariff Schedule 33 with modifications (the ESA and Schedule 33 are approved with modifications) for Idaho Power to serve Brisbie’s data center.Idaho Public Utilities Commission Order 35777 (2023)

What this means

The order enables Brisbie’s data center to receive a tailored electricity contract and sets a path for similar projects, modestly supporting data center operations. But it also requires commission review of future project agreements and specific pricing protections, so it is not a broad or unrestricted benefit.

People behind it

  • Applied for approval of the Brisbie electric-service agreement and Tariff Schedule 33.

  • Reviewed and approved the agreement and tariff, subject to modifications, and issued the order.

Restrictions & requirementsHide restrictions & requirements3

  • For Brisbie’s excess energy, the credit for each hour is limited to the lower of the forecast price with an 85% adjustment or the actual high- or low-load-hour Mid-C market price. The lower-of-price rule

  • Brisbie receives no capacity-avoidance payments until Idaho Power’s system is capacity deficient; the applicable deficiency date is the one authorized in the biennial PURPA filing when the PPA or resource construction agreement is executed. Capacity payments begin only at deficiency

  • Future CEYW-Construction project PPAs and resource construction agreements must be reviewed and approved by the Commission, adding an approval step for projects under that program. Future agreements require Commission approval

Benefits & exceptionsHide benefits & exceptions4

  • The Commission approved a special electric-service agreement and Tariff Schedule 33 for Brisbie’s data center, establishing tailored terms for its electricity service. approved with modifications

  • The agreement provides for new renewable resources to support the data center’s electricity needs, with Brisbie retaining the RECs from those resources. all of the RECs

  • Brisbie receives credits for excess renewable generation, but the hourly credit is limited to the lower of the forecast-based price with an 85% adjustment or the actual high- or low-load-hour Mid-C market price. the lower of the Excess Energy Price

  • Brisbie may receive renewable capacity credits for capacity avoidance once Idaho Power’s system is capacity deficient; the deficiency date is the date authorized when the associated PPA or resource construction agreement is executed, and compensation uses the Commission-approved method. starting on the Company’s capacity deficiency date

Sources

current law · Statewide
Establishes the SPEED Council to coordinate state permitting for major projects under Idaho Executive Order 2025-02, signed on January 24, 2025.Idaho Executive Order 2025-02 (2025)

What this means

The order focuses on state planning and coordination, rather than changing the rules for building or operating data centers. It may help inform future decisions, but it does not itself provide a clear benefit or impose a meaningful new burden on data centers (executive order).

Timing

The order establishes a moratorium, but its ending condition is unclear from the source. Moratorium

People behind it

  • Signed Executive Order 2025-02, establishing the SPEED Act. Governor Brad Little signed Executive Order 2025-02

  • Created by the executive order to coordinate and expedite state permitting for qualifying large-scale projects. The executive order creates a new SPEED Council

  • Named to chair the SPEED Council. Richard Stover ... will chair the SPEED Council

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  • Designated to advise the SPEED Council. Lt. Governor Scott Bedke will advise the council

Benefits & exceptionsHide benefits & exceptions3

  • The SPEED Council is to coordinate and expedite permit reviews, and collaborate with project proponents. Large-scale projects requiring permits from multiple state agencies may qualify, including data center development, but the Council determines which projects are covered. Expedite the review of permits

  • The Council is to increase public transparency in the permitting process. Boost public transparency

  • The Council is to seek elimination of duplicative or unnecessary statutes and rules that can impede permitting. Eliminate duplicative or unnecessary statutes and rules

Sources

failed · Statewide
Limits data-center sales-tax breaks to 20 years and, for new projects, requires full payment of electricity costs and advance notice of expected water use.Idaho H897 (2026)

What this means

For new projects starting construction on or after April 1, 2026, the bill removes the sales-tax break for building the facility and requires the utility to recover its electricity costs from the data center (exemption limited to eligible server equipment; fully recovers). It also adds advance water-use notice and limits the sales-tax exemption to 20 years, but retains an equipment tax benefit, so the overall effect is a meaningful added burden rather than a ban.

People behind it

  • Introduced H 897 in the House.

  • Presented the bill and served as its House floor sponsor.

  • Presented the bill and served as its Senate floor sponsor.

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  • Charged with administering the exemption, including required reports and related rulemaking.

Restrictions & requirementsHide restrictions & requirements6

  • For data centers that commence construction on or after April 1, 2026, the sales-tax exemption is limited to eligible server equipment; purchases for constructing new data-center facilities are not covered. only to eligible server equipment

  • The sales-tax exemption lasts no more than 20 years from issuance of the qualifying business entity’s final approval certification. for a period of twenty (20) years

  • The property-tax exemption for qualifying new capital investments is limited to facilities that commenced construction before April 1, 2026, excluding later projects from that exemption. commenced construction prior to April 1, 2026

  • For a data center commencing construction on or after April 1, 2026, qualifying for the sales-tax exemption requires an electricity rate schedule or energy service agreement that makes the business pay all utility costs incurred to serve the property. fully recovers from the qualifying business entity all costs

  • Before construction, a qualifying business entity for a data center commencing construction on or after April 1, 2026, must give written notice to the local water provider and Idaho Department of Water Resources describing anticipated water needs. prior to commencing construction

  • To qualify for the sales-tax exemption, a business entity must commit to at least $250 million in aggregate data-center capital investment within the first five years after construction begins and create and maintain at least 30 new jobs within two calendar years after operations begin. These are tax-incentive eligibility conditions, not a prohibition on building a center. at least two hundred fifty million dollars

Benefits & exceptionsHide benefits & exceptions4

  • Qualifying data centers receive a sales and use tax exemption lasting 20 years from final approval. The exemption is limited to eligible server equipment for projects whose construction begins on or after April 1, 2026; qualifying entities generally must invest at least $250 million and create and maintain 30 new jobs. Newer projects must also meet the electricity-cost and water-notice conditions. 20 years electricity and water conditions

  • Projects already under construction retain the prior sales tax exemption for construction materials and eligible server equipment, although the new 20-year limit applies to them. projects currently under construction

  • A qualifying business entity may claim a provisional sales tax exemption while investing in data center property; if it fails to meet the investment and job requirements on time, it must repay the taxes that would otherwise have been due. provisional exemption

  • A qualifying taxpayer may receive a property tax exemption on taxable property value above $400 million if it makes at least $1 billion in qualifying investment. Under this measure, eligibility is limited to facilities whose construction began before April 1, 2026. commenced construction prior to April 1, 2026 investment of at least one billion dollars

Sources

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