- Florida legislature passed a bill ending sales tax exemption for data centers under 100 MW, effective August 1, 2025.
- This affects existing data center owners, tenants, and developers of sub-100 MW centers.
- Current exemption allows tax-free purchase of equipment and materials for data centers.
- Loss of exemption impacts ongoing operations, including electricity purchases.
- Could affect landlords’ ability to retain and attract tenants.
- May breach existing lease covenants and loan agreements, affecting asset valuations.
- Exemption requires a five-year review process; centers under 100 MW cannot certify post-August 2025.
- No grandfather rule for existing sub-100 MW data centers.
- Contractors and subcontractors of sub-100 MW centers under construction will also be impacted.
Source: gtlaw.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
