Louisiana has introduced new data center tax breaks for developers.

Governor Jeff Landry signed House Bill 827 into law last week. The bill provides state and local sales and use tax rebates on the sale of communications service equipment and data center equipment in the state.

To qualify, data center projects will have to create a minimum of fifty new direct, permanent jobs in Louisiana and see at least $200 million in new capital investment in Louisiana from July 2024 to July 1, 2029. The tax breaks will last for 20-30 years.

The bill was introduced in April of this year; it passed the House 83-4 in mid-May and passed the Senate 35-0 later that month. It was signed into law by Governor Landry this month.

Sponsors of the bill included Republican representatives Christopher Turner (who introduced the bill), Nicholas Muscarello, Joseph Stagni, and Francis Thompson, and Democratic representatives Denise Marcelle and Rashid Young.

A note joining the bill suggests there are only 10 data centers located in the state, and no known data centers under construction that would meet the specifications of the bill.

DartPoints operates three data centers in the state in Baton Rouge and Shreveport. The company acquired all three when it bought Venyu last year.

Venyu launched an 87,000 sq ft (8,080 sqm), Tier III-certified facility in the city of Shreveport that was previously a Selber Brothers department store building in 2016. Located in the Bon Carré Business Park in Baton Rouge, BTR2 launched in 2014 and offers 7,300 sq ft (680 sqm) of data hall space.