The Artificial Intelligence and Data Center Act establishes the Office of Transformation and Opportunity and introduces the Artificial Intelligence, Data Center, and Emerging Technology Regulatory Sandbox Program. This program allows for the testing of innovative products and services related to artificial intelligence and data centers without the need for standard licensing or authorization, providing participants with limited market access. The act outlines the office's responsibilities, including application reviews, consultations with relevant agencies, and ensuring consumer protection during the testing process. It also defines key terms, such as "high impact data center," and mandates that local ordinances cannot impose stricter conditions on these facilities than those applied to other industrial uses.

Additionally, the bill introduces a High Impact Data Center Permit Program to streamline the permitting process for high-impact data centers, establishing a public-facing dashboard to track timelines and requiring cooperation from state agencies. It sets a maximum approval timeline of 120 days for specific permits and includes a provision for deemed approval in case of delays. Participants in the regulatory sandbox must provide clear consumer disclosures and fulfill responsibilities upon exiting the program. The act also includes provisions for recordkeeping, reporting requirements, and the potential removal of participants for violations. The office will prepare annual reports to assess economic development opportunities, with the first report due by December 31, 2025, and the act will take effect 60 days after passage.