Data centers would face a very different tax landscape under a new proposal from Sen. Ron Wyden of Oregon. Wyden, the top Democrat on the Finance Committee, last week released a white paper proposal to change the taxation of data centers. (Of note: The tax would apply to any data centers located in space, as envisioned by Elon Musk and Jeff Bezos.) AdvertisementThe existing tax landscape: In general, data centers often benefit from tax incentives offered by lower-level governments – although that is changing fast, as the backlash to data center development grows. AdvertisementWest said it is a good first step toward addressing some of the problems created by data centers.