ID H0609

Removes the sales tax exemption for construction of new data center facilities while retaining the exemption for eligible server equipment purchases through July 1, 2036

Adds new requirements for data centers receiving exemptions after March 1, 2026: electricity rates must fully recover all utility costs, and written notice of anticipated water consumption must be provided to local water providers before construction begins

Encourages qualifying data centers to implement water conservation measures including water-efficient fixtures, rainwater harvesting, water recycling in cooling systems, use of reclaimed water, and support for local watershed restoration

Creates mutual exclusivity between the data center sales tax exemption (Section 63-3622VV) and the property tax exemption for new capital investments exceeding $1 billion (Section 63-4502), preventing taxpayers from claiming both

Declared an emergency measure, taking effect immediately upon passage and approval