Data center equipment and infrastructure

From the 2024 DOR Tax Exemption Study

Excise Tax Advisory Excise Tax Advisories are interpretive statements authorized by RCW 34.05.230. ETA 3213.2023 Issue Date: May 22, 2023 Data Center Exemption Durations Introduction RCW 82.08.986 and RCW 82.12.986 provide retail sales and use tax exemptions, respectively, on the purchase and installation of both server equipment and power infrastructure in a qualifying computer data center located within a rural1 county (“rural data center”). RCW 82.08.9861 and RCW 82.12.9861 provide similar retail sales and use tax exemptions for a qualifying computer data center located in an urban county with a population over 800,000 (“urban data center”). These laws are collectively known as the “data center statutes,” and the applicable exemptions are commonly referred to as the “data center exemptions.” How long a data center exemption lasts (the “duration”) for a taxpayer depends on the following: • Whether the data center is a rural or urban data center; • When data center construction commenced; • The type of equipment involved; and • Whether the applicant is a data center owner2 or tenant. This Excise Tax Advisory (ETA) provides the various durations and expirations of the data center e