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Landry announces new tax break requirements for data centers, which he now calls 'digital factories'

1 hour 42 minutes 30 seconds ago Thursday, October 29 2026 Oct 29, 2026 October 29, 2026 1:25 PM October 29, 2026 in News
Source: WBRZ

BATON ROUGE — Gov. Jeff Landry and Louisiana Economic Development announced new requirements for data center companies to receive tax breaks.

In the announcement, Landry said the state will now refer to the facilities as "digital factories," although the Data Center Sales and Use Tax Exemption will keep its name.

"The completion of the framework comes as the industry itself continues to evolve. These facilities increasingly support the computing demands of super intelligence while producing a broad range of digital goods and services," LED said for the reasoning behind the new name.

The announcement includes new stipulations to the Data Center Sales and Use Tax Exemption. 

Now, LED says, the exemption framework will require companies to show commitment to preventing increased costs for ratepayers, strengthening grid reliability, protecting natural resources and investing in local workforces.

"Under President Trump’s leadership, America is entering a new era of digital infrastructure, and Louisiana is leading the way," Landry said. "This framework ensures we remain at the forefront of the age of digital factories and super intelligence while protecting our citizens and communities. We have set the standard for how states can pursue these opportunities responsibly and put their people first.”

The tax exemptions will be an invite-only program for "prospective companies prepared to make significant, long-term commitments to Louisiana."

The reframed exemptions require applicants to submit a "detailed attestation" outlining how they will meet the state's requirements, LED says.

"Louisiana Economic Development (LED) will utilize a whole-of-government approach to coordinate with state agencies and local partners to evaluate each submission," LED said.

The announcement also referred to artificial intelligence as "super intelligence," a reframing that President Donald Trump has pushed for recently.

"Digital factories power the age of super intelligence and are central to America’s competition for advanced computing and digital infrastructure," the announcement says.

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