Tax Incentives and Structuring Considerations for Data Centers

AI-scale data centers are capital-intensive projects where tax structuring decisions made early in the development cycle can materially affect after-tax returns, project economics, and exit flexibility. 

This CLE webinar provides a practical overview of the federal, state, and structuring considerations that commonly drive tax outcomes for data center owners, developers, and investors. We will address energy-related tax incentives applicable to data center power infrastructure, including investment and production tax credits for on-site generation and battery storage, bonus credit mechanics under the Inflation Reduction Act as modified by the One Big Beautiful Bill Act, and the impact of newly released foreign entity of concern restrictions on credit eligibility and equipment sourcing decisions. We will also cover entity and real estate structuring choices, including when REIT and private REIT structures may be viable for data center assets, the treatment of service income through taxable REIT subsidiaries, and how fund and joint venture structures interact with diverse investor tax profiles.

Additional topics include cost recovery planning through cost segregation and permanent 100% bonus depreciation, Qualified Opportunity Zone and Qualified Rural Opportunity Fund structuring for data center development—particularly as new zone designations take effect—and state and local incentive programs that frequently influence site selection. For projects involving non-U.S. capital, we will briefly address FIRPTA planning and the domestically controlled REIT framework.

Attendees will gain a deal-oriented framework for identifying available tax benefits and aligning structuring decisions with project financeability and long-term asset value.

Wednesday, March 25, 2026
1:00PM – 2:00PM PT
2:00PM – 3:00PM MT
3:00PM – 4:00PM CT
4:00PM – 5:00PM ET

Virtual
Zoom information will be included in the confirmation email you will receive after registering.

CLE Information
This program is pending approval for 1 professional practice/general/law & legal procedure CLE credit in AZ, CA, CO, ID, IL, NY, OR, TX, VA, WA, and WI for both newly admitted and experienced attorneys. In order to receive CLE credit, remote attendees must complete the CLE Form for Tax Incentives and Structuring Considerations for Data Centers within three (3) business days after the program date.