cost responsibility agreements; data centers

HB 2738 provides tax relief to owners and operators of computer data centers in Arizona that meet specific investment requirements, with qualified colocation tenants also eligible for the benefit. To qualify, data centers must apply for certification, submit a cost responsibility agreement (requiring them to pay for utility infrastructure upgrades), and meet either a $25 million investment threshold (in counties under 800,000 people) or $50 million (in larger counties) within five years of certification. Failure to meet these thresholds results in revoked certification and potential recapture of tax relief, with new applications no longer accepted after December 31, 2033.