Wyoming Panel Advances Data Center Tax for Roads
A committee voted 8-2 to direct 40% of data centers' electricity sales taxes into a trust fund for the state transportation department.
Updated on Nov. 10, 2026 in Data Centers
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Should states direct data center electricity taxes toward road funding?
Wyoming lawmakers advanced a bill that would divert 40% of electricity sales taxes paid by data centers into a trust fund for the Wyoming Department of Transportation. The Transportation, Highways and Military Affairs Committee adopted the measure 8-2, giving it an edge heading into the 2027 session.
Why it matters
WYDOT projects a $500 million funding shortfall, with $300 million tied to road maintenance and projects, and has complained of shortfalls for several years. Labor and materials costs have risen faster than fuel tax collections since the state raised gasoline taxes in 2013.
The amended bill raises the diversion share from 25% to 40% of data center electricity sales taxes and requires utilities and generators to report power sold to data centers to the Department of Revenue. Whether that reporting will yield enough revenue to close the projected $500 million gap has not been established.
The players
Wyoming Department of Transportation (WYDOT)
The state agency responsible for Wyoming's highways and roads, which has reported a projected $500 million funding shortfall and would receive the trust fund proceeds.
Transportation, Highways and Military Affairs Committee
The Wyoming legislative committee that voted 8-2 to adopt the trust fund bill and the two companion bills on bonding and mineral trust fund borrowing.
The details
The committee also adopted two other bills letting WYDOT sell bonds and borrow from the roughly $13 billion permanent mineral trust fund at a low interest rate. The diversion would not touch sales and use taxes set aside for local communities, and data centers remain exempt from sales taxes on software, equipment, backup power or HVAC supplies costing more than $2 million in one year.
Timeline
2013: Wyoming raised its gasoline tax from 14 cents to 24 cents a gallon.
November 9, 2026: The committee advanced the data center tax trust fund bill.
2027: The legislative session where the bill gains an advantage.
Big Picture
The bill responds to a funding gap that began after Wyoming raised its gasoline tax from 14 cents to 24 cents a gallon in 2013, as construction costs outpaced fuel tax collections. It shifts the burden toward data centers, which are otherwise exempt from sales taxes on large software, equipment, and backup power purchases.
If enacted, the diversion would direct more state tax revenue toward road maintenance rather than general funds, which may affect how Wyoming drivers experience road repairs. Data center operators would bear a larger tax obligation on electricity they purchase, a cost that could influence where and whether new facilities are built in the state.
The takeaway
The bill links a transportation funding problem to a fast-growing industry's electricity use, a connection that will matter if data center growth continues in Wyoming. Readers tracking the 2027 session should watch whether the 40% share survives the full legislature.
Further reading
For related coverage, see Data Centers in the Wyoming news section.
Source note: This article includes information reported by Cowboy State Daily.
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Should states direct data center electricity taxes toward road funding?
