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.

This bill exempts qualified data centers in Texas from property taxes on their buildings, land, and energy-related equipment. To qualify, a data center must be at least 100,000 square feet, use backup power for all energy needs, and have a contract to supply energy to the power grid. The exemption applies only to properties meeting these specific criteria and requires voter approval of a related constitutional amendment to take effect. The tax break would begin January 1, 2026, if the amendment passes.