Certain defined terms maintained, and data center exemptions modified.

This bill modifies Minnesota's tax exemption rules for data centers by creating a new category for large-scale facilities and updating the definition of enterprise information technology equipment. It directly affects businesses constructing or operating data centers in the state by changing the financial thresholds required to qualify for sales tax exemptions on equipment and software. The legislation defines a qualified large-scale data center as a facility with at least 25,000 square feet and a minimum investment of $250 million over 60 months, while also clarifying what counts as enterprise information technology equipment for tax purposes. These changes will take effect on July 1, 2026, and apply to purchases made after that date.