AZ HB2738

Requires data center owners or operators seeking tax relief certification to submit a cost responsibility agreement with their electric utility, mandating that they pay all costs for dedicated electrical infrastructure upgrades needed to serve the facility.

Establishes annual reporting requirements for certified data centers, including full-time employee counts, total energy use, capital investments, water consumption, and energy/water sources.

Authorizes the Arizona Department of Revenue to recapture all tax relief provided to owners or operators who fail to comply with cost responsibility agreement requirements.

Applies to the existing computer data center tax relief program, which offers sales tax deductions on data center equipment for qualifying facilities that invest $25-50 million (depending on county population) within five years of certification.

Certification periods range from 10 to 20 years depending on whether the facility qualifies as a sustainable redevelopment project.