89R15034 RDS-D     By: Parker S.B. No. 2222       A BILL TO BE ENTITLED   AN ACT   relating to an exemption from ad valorem taxation of the total   appraised value of real property used as a data center and the   tangible personal property used by the data center to meet the data   center's demand for energy.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by   adding Section 11.38 to read as follows:          Sec. 11.38.  DATA CENTER GENERATING ELECTRICITY. (a) In   this section:                (1)  "Data center" means at least 100,000 square feet   of space in a single building or portion of a single building, which   space:                      (A)  is specifically constructed or refurbished   and actually used primarily to house servers and related equipment   and support staff for the processing, storage, and distribution of   data;                      (B)  is used for the processing, storage, and   distribution of data;                      (C)  is not used primarily by a telecommunications   provider to place tangible personal property that is used to   deliver telecommunications services; and                      (D)  has an uninterruptible power source,   generator backup power, a sophisticated fire suppression and   prevention system, and enhanced physical security that includes   restricted access, video surveillance, and electronic systems.                (2)  "Qualified data center" means a data center that:                      (A)  uses the data center's uninterruptible power   source and generator backup power to meet all of the data center's   demands for energy; and                      (B)  has entered into a contract to provide energy   or ancillary services to the ERCOT power grid or another power grid.                (3)  "Qualified property" means:                      (A)  a single building or portion of a single   building used as a qualified data center;                      (B)  the parcel of land on which the qualified   data center is located; and                      (C)  tangible personal property located at the   qualified data center that is used to meet the data center's demands   for energy as described by Subdivision (2)(A).          (b)  A person is entitled to an exemption from taxation of   the total appraised value of qualified property the person owns.          SECTION 2.  The changes in law made by this Act apply only to   an ad valorem tax year that begins on or after the effective date of   this Act.          SECTION 3.  This Act takes effect January 1, 2026, but only   if the constitutional amendment proposed by the 89th Legislature,   Regular Session, 2025, to authorize the legislature to exempt from   ad valorem taxation the total appraised value of real property used   as a data center and the tangible personal property used by the data   center to meet the data center's demand for energy is approved by   the voters.  If that amendment is not approved by the voters, this   Act has no effect.