The bill amends Section 42-64-3 of the General Laws in Chapter 42-64, which governs the Rhode Island Commerce Corporation, by introducing new definitions related to data centers, including "colocation tenant," "qualified data center," "qualified data center equipment," and "qualified investment." It clarifies that a "qualified data center" is a facility developed, acquired, constructed, rehabilitated, renovated, repaired, or operated to house a group of networked computer services in one physical location or multiple contiguous locations for centralized data storage and management. "Qualified data center equipment" refers to the necessary hardware and software for the operation of these centers. The bill also specifies "eligible qualified data center costs" related to the development, acquisition, construction, rehabilitation, renovation, repair, or operation of these centers.

Additionally, the bill establishes a new section, 42-64-43, creating a Qualified Data Center Location Incentive that allows entities anticipating ownership, operation, or colocation tenancy in a qualified data center to apply to the corporation for tax exemptions from property taxes and sales taxes, contingent upon making significant investment commitments. The investment thresholds are set at $200 million for qualified data centers located in enterprise zones or federal qualified opportunity zones, and $400 million for those not located in such zones.

The bill outlines the responsibilities of the Secretary of Commerce in managing these agreements, including serving as a liaison and providing assistance to applicants. It mandates that no construction, rehabilitation, renovation, or repair of a facility that will be a qualified data center can commence without a negotiated host municipality fee agreement. The legislation includes provisions for compliance, including a 180-day cure period for noncompliance, and details the consequences of termination of fee agreements, including liability for previously exempted property taxes. The act will take effect upon passage.

Statutes affected:
921: 42-64-3