TX SB2888

Adds new energy conservation and efficiency requirements for data centers to qualify for temporary sales and use tax exemptions, including use of liquid cooling systems instead of air cooling, row- or rack-based air cooling instead of room-based systems, and Energy Star-certified servers

Applies the same energy efficiency requirements to large data center projects seeking tax exemption certification, requiring all three conservation measures be implemented

Maintains existing qualification requirements for data centers: creation of at least 20 qualifying jobs in the county and minimum $200 million capital investment over five years

Maintains existing qualification requirements for large data center projects: creation of at least 40 qualifying jobs, minimum $500 million capital investment over five years, and contracts for at least 20 megawatts of transmission capacity

New energy efficiency requirements apply only to data centers and large data center projects certified on or after September 1, 2026, with the act taking effect September 1, 2025