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With the enactment of Louisiana Revised Statute 47:305.73, the state has taken significant steps to incentivize the development of data centers. The statute provides a state and local sales and use tax exemption for eligible data center equipment, software, and certain construction and development costs.

However, while the exemption provides substantial opportunity, there are still questions regarding the practical application of the statute.

Under R.S. 47:305.73, an “approved data center facility” is defined as a facility located in Louisiana that is certified by Louisiana Economic Development (LED). To qualify, the operator must attest that the project will create a minimum of 50 new direct, permanent jobs and expend at least $200 million in new capital investment in Louisiana between July 1, 2024, and July 1, 2029.

Below are some of the state incentives offered to data centers in the Southern US:• Alabama: Tiered sales and property tax abatements lasting 10–30 years depending on capital investment levels from $200M to over $400M.• Arkansas: Full sales and use tax exemption for data center investments of $100M+. Enhanced exemptions for mega-projects of $2B+ and significant payroll.• Florida: Sales and use tax exemption for data centers investing $150M+ with at least 15MW of critical load; certificate and reporting requirements apply.