Wyden proposes a data center tax and support for workers displaced by AI.

Senator Ron Wyden released draft legislation on October 23 that would impose an excise tax on data center operators. The bill would also remove federal tax breaks, including bonus depreciation, opportunity zone benefits, and research tax credits.

A separate worker package would expand unemployment insurance and create Transition Wages for people displaced by AI disruption. It would support education and retraining. Chuck Schumer, Michael Bennet, and Elizabeth Warren co-sponsor the worker proposal.

The proposals are not enacted taxes or benefits. They do not establish how many jobs AI has displaced, and they offer no guarantee that Congress will pass them. Roll Call describes them as a possible Democratic priority if the party regains Senate control.

Wyden's proposals put the public cost of data centers next to the cost of retraining workers. Washington helps finance data center investment, while displaced workers may need income during retraining.

Watch for committee action, other lawmakers joining the sponsors, and changes to who would pay the tax or qualify for support.