Definitions

The following words and phrases shall have the meanings in 400 CMR 9.00 set forth as follows, unless the context clearly indicates otherwise: Certification. The written certification issued by EOED pursuant to 400 CMR 9.00 certifying that an owner or operator of a proposed Qualified Data Center is eligible to claim the Qualified Data Center Sales Tax Exemption, and setting forth any conditions or limitations on the applicability of the Qualified Data Center Sales Tax Exemption consistent with M.G.L. c. 23A, § 70 and M.G.L. c. 64H, § 6(zz). Colocation Tenant. A person, partnership, company, corporation or other entity that contracts with or leases from the owner or operator of a Qualified Data Center to use or occupy all or part of a Qualified Data Center. Commissioner. The Commissioner of Revenue or the Commissioner's duly authorized representative. Computer Software. Software purchased, leased, utilized or loaded at a Qualified Data Center, including, but not limited to, maintenance, licensing and software customization. Construction Costs. Costs of materials, labor, services and equipment purchased or leased to construct a Qualified Data Center, including, but not limited to, the cost of Data Center Building, accessory building, building improvement, land development, site improvement, site utility infrastructure, building materials, steel, concrete, gravel, engineering services, heavyequipment, cranes, transportation equipment, excavation, storm water system and management, access roads, bridges, fencing, lighting, landscaping and other costs to construct the facility. Data Center Building. A free-standing building which is part of a Data Center. Data Center. A building or series of buildings that houses and supports the high-performance servers, storage systems, networking equipment, and related computing infrastructure and equipment necessary for storing, processing, and distributing data and applications. Eligible Data Center Equipment. Computers and equipment supporting computing, networking, data processing or data storage, including, but not limited to: (a) servers and routers, computer servers and routers, connections, chassis, networking equipment, switches, racks, fiber optic and copper cables, trays, conduits and other enabling machinery, equipment and hardware; (b) component parts, replacement parts and upgrades; (Mass. Register #1570, 03/27/2026) (c) cooling systems, cooling towers, chillers, mechanical equipment, HVAC equipment, refrigerant piping, fuel piping and storage, adiabatic and free cooling systems, water softeners, air handling units, indoor direct exchange units, fans, ducting, filters and other temperature control infrastructure; (d) power infrastructure for transformation, generation, distribution or management of electricityused for the operations and maintenance of a Qualified Data Center, including, but not limited to, substations, switchyards, transformers, generators, uninterruptible power supplies, backup power generation systems, battery systems, energy efficiency measures, supplies, fuel piping and storage, duct banks, switches, switchboards, testing equipment and related utility infrastructure; (e) monitoring and security equipment; (f) water conservation systems, including, but not limited to, equipment designed to collect, conserve and reuse water; (g) modular data center equipment and preassembled components of any item described in this paragraph, including, but not limited to, components used in the manufacturing of modular data centers; and (h) any other personal property or equipment that is used or consumed in the operation and maintenance of the Qualified Data Center. EOED. The Executive Office of Economic Development. Eligible Expenditures. Expenditures eligible for the Qualified Data Center Sales Tax Exemption consisting of: (a) Eligible Data Center Equipment for use in a Qualified Data Center; (b) Computer Software for use in a Qualified Data Center; (c) electricity for use or consumption in the operation of a Qualified Data Center; or (d) Construction Costs incurred for the construction, renovation or refurbishment of a Qualified Data Center. Material Noncompliance. The failure of a Qualified Data Center to substantially achieve the investment requirements and minimum number of jobs required for Certification as a Qualified Data Center. Permanent Full-time Employee. An individual, who works in Massachusetts and is paid wages by the owner or operator of the Qualified Data Center, who: (a) at the inception of the employment relationship, does not have a termination date which is either a date certain or determined with reference to the completion of some specified scope of work; (b) works at least 35 hours per week; and (c) receives employee benefits at least equal to those provided to other full-time employees of the owner or operator of the Qualified Data Center; provided, however, that "Permanent Full-time Employee'' shall not include contractors or part-time employees who may be included in a calculation of the owner or operator of the Qualified Data Center's full-time equivalent workforce. Qualification Period. A 20-year period of time beginning on the effective date of the Certification by the Secretaryof the Qualified Data Center for the first Data Center Building, and expiring at the end of the 20th full calendar year following the calendar year in which the Certification became effective; provided, that if the Qualified Data Center is comprised of more than one Data Center Building, the Qualification Period for each subsequent Data Center Building that is constructed at the Qualified Data Center shall start when each Data Center Building begins commercial operations, as evidenced by receipt of a certificate of occupancy, and shall continue for a period of 20 full calendar years, expiring at the end of the 20th full calendar year following the calendar year each respective Data Center Building began commercial operations. Qualified Data Center. A Data Center in the Commonwealth that has received a Certification after demonstrating that the Data Center: (a) is owned or leased by: 1. the operator of the Data Center; or 2. a person, partnership, company, corporation or other entity under common ownership of the operator of the Data Center; (b) is comprised of one or more Data Center Buildings that consist in the aggregate of not less than 100,000 square feet and that are located on a single parcel, or on contiguous parcels, where the total eligible Qualified Data Center Costs of the Data Center are at least $50,000,000 within a ten-year period from the effective date of the Certification by the Secretary as a Qualified Data Center; (c) is constructed or Substantially Refurbished; (d) Creates or maintains a minimum of 100 Permanent Full-Time Employees in the Commonwealth within five years of the effective date of the initial Certification of the Qualified Data Center; and (e) is used to house computer information technology equipment, networking, data processing or data storage, including, but not limited to, servers and routers for the storage, management and dissemination of data and information where the facility has the following characteristics: 1. uninterruptible power supplies, generator backup power, or both; 2. sophisticated fire suppression and prevention systems; and 3. enhanced security; provided, that a Qualified Data Center shall be considered to have enhanced security if it has restricted access to the facility to selected personnel, permanent security guards, video camera surveillance, an electronic system requiring pass codes, keycards or biometric scans or similar security features. Qualified Data Center Costs. Expenditures made for the construction, refurbishment, renovation or improvement of a facility to be used as a Qualified Data Center, including, but not limited to, the cost of land, land development, site improvement, site utility infrastructure, construction of each Data Center Building, accessory building, building improvement and Eligible Data Center Equipment. Qualified Data Center Sales Tax Exemption. The tax exemption authorized pursuant to M.G.L. c. 64H, § 6(zz). Secretary. The secretary of economic development or the Secretary's duly authorized representative. Substantially Refurbished. A rebuild, modification or construction of not less than 100,000 square feet of an existing facility that is a Qualified Data Center where the total eligible Qualified Data Center Costs are not less than $50,000,000 within a ten-year period from the effective date of the Certification by the Secretary as a Qualified Data Center including, but not limited to: (a) installation of computerinformation technologyequipment, networking, data processing or data storage, including servers and routers, environmental control, Computer Software and energy efficiency improvements; and (b) building improvements.