Requiring data centers to be located on land that was zoned for industrial or manufacturing uses or was not zoned on July 1, 2025, to qualify for the sales tax exemption for qualified data centers.

This bill requires data centers in Kansas to be built on land that was zoned for industrial or manufacturing use before July 1, 2025, in order to receive a sales tax exemption on construction and equipment costs. The law directly affects businesses developing data centers by adding a zoning requirement to the existing tax incentive program. Under the new rules, eligible costs include land, buildings, servers, cooling systems, and other essential equipment, but exclude electricity expenses. The legislation aims to guide data center development toward areas already designated for industrial purposes while maintaining the financial benefits intended to attract such facilities to the state.