Sen. Josh Hawley of Missouri plans to introduce legislation barring data centers from claiming Opportunity Zone tax incentives, adding a Republican-led proposal to House Democrats' separate effort announced on September 16, 2026. Created under the 2017 Tax Cuts and Jobs Act, Opportunity Zones offer capital-gains tax benefits to attract investment to economically distressed areas. National Community Reinvestment Coalition analysis cited in the campaign says about 14% of existing data centers and more than 17% of permitted or approved projects are located in the zones. Hawley argues highly profitable technology companies do not need the subsidy and that data centers displace investments the program was designed to support. In February 2026, he co-sponsored the GRID Act, S. 3852, with Sen. Richard Blumenthal, a Democrat from Connecticut; the bill would require new data centers to source power from off-grid generation rather than existing utility infrastructure. The federal debate builds on House Democratic proposals led by House Minority Leader Hakeem Jeffries and Rep. Jim McGovern, including measures targeting Opportunity Zone benefits and bonus depreciation, as well as Sen. Ron Wyden's August 6 white paper proposing an excise tax on gross receipts for AI-related data centers. Pennsylvania, Ohio, Illinois and Arizona are also reconsidering state incentives. The combined proposals could raise project costs, delay or relocate developments and create uncertainty for new Opportunity Zone funds investing in data centers, although existing investments typically have some protection from retroactive changes.