Bill > SB2222

This bill creates a property tax exemption for qualified data centers in Texas, specifically targeting large-scale facilities of at least 100,000 square feet designed primarily for data processing, storage, and distribution. To qualify, a data center must have specific infrastructure characteristics including uninterruptible power sources, generator backup power, sophisticated fire suppression systems, enhanced physical security, and must be contractually committed to providing energy or ancillary services to the ERCOT (Electric Reliability Council of Texas) or another power grid. The exemption would apply to the entire appraised value of the data center building, the land it sits on, and the tangible personal property used to meet the facility's energy demands. Importantly, the bill is contingent on voters approving a related constitutional amendment during the 2025 legislative session, and if approved, would take effect on January 1, 2026, applying to ad valorem (property) tax years beginning on or after that date. The legislation aims to incentivize data center development by offering significant tax benefits to facilities that contribute to energy grid reliability.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2222