State of Texas Data Center Incentives

State lawmakers have approved a plan to offer tax incentives to companies that open data centers throughout the state, as part of a move to attract more technology companies and capital investment to Texas.

Texas had long been a preferred location for large data centers given its central location, economic climate, reliable electric grid, historically low occurrences of natural disasters, educated workforce and pro-business environment.

House Bill 1223 created the incentive and will eliminate much of the sales tax for new data centers that take up more than 100,000 square feet of space and have at least a $200 million investment.  The law provides a sales tax exemption for electricity consumption and equipment purchases, such as servers, generators, storage devices, software and other systems necessary for data center operations.  The incentives take effect September 1, 2013. (05/29/13)

For additional information, click here to access the State of Texas Comptroller's website.