The Artificial Intelligence and Data Center Act establishes the Office of Transformation and Opportunity within the Governor's Office to oversee a new regulatory framework for high impact data centers and emerging technologies. A "high impact data center" is defined as a facility with a critical IT load of 50 megawatts or higher, and the bill requires data center owners to notify the office when their facility meets this criterion. It also mandates local ordinances to ensure reasonable development of such centers. The legislation introduces the Artificial Intelligence, Data Center and Emerging Technology Regulatory Sandbox Program, allowing participants to test innovative products or services without standard licensing requirements, while ensuring consumer protection and compliance with recordkeeping and reporting obligations.

Additionally, the bill establishes the High Impact Data Center Permit Program to streamline the permitting process for high-impact data centers, including provisions for deemed approval of permits in case of decision delays. The office is tasked with promoting economic development projects and preparing annual reports for the Governor that analyze economic opportunities and provide recommendations. The act is designed to foster innovation in the technology sector while maintaining regulatory oversight and is set to take effect 60 days after its passage.