Texas SB2222 proposes an exemption from ad valorem taxation for data centers and related property if a constitutional amendment is approved.

Texas SB2222 amends the Tax Code to exempt from ad valorem taxation the total appraised value of real property and tangible personal property used by data centers that meet certain criteria. A "data center" is defined as at least 100,000 square feet of space used for processing, storing, and distributing data, with specific infrastructure and security measures. A "qualified data center" must use its own power sources to meet energy demands and contract to provide energy to the ERCOT power grid or another grid.

Texas SB2222 proposes an exemption from ad valorem taxation for data centers and related property if a constitutional amendment is approved.

Texas SB2222 amends the Tax Code to exempt from ad valorem taxation the total appraised value of real property and tangible personal property used by data centers that meet certain criteria. A "data center" is defined as at least 100,000 square feet of space used for processing, storing, and distributing data, with specific infrastructure and security measures. A "qualified data center" must use its own power sources to meet energy demands and contract to provide energy to the ERCOT power grid or another grid.