← All glossary terms

Finance, Valuation, and Incentives

Sales tax exemption

Sales tax exemption removes sales or use tax from qualifying purchases, such as servers, enabling software, electrical equipment, or construction materials depending on state rules. Data center exemptions often require investment, job, wage, or MOU commitments.

Explore more terms

ROFR

Right of First Refusal gives the holder the right to match a third-party offer the owner is willing to accept. It can protect strategic land or capacity positions, but timing and matching mechanics must be carefully drafted.

Read definition →

Water rights

Water rights are legal rights to withdraw, consume, or use water. They matter for data center site selection because availability, priority, transferability, drought risk, and local politics can constrain water-intensive cooling strategies.

Read definition →

Fuel consumption

Fuel consumption is the fuel used by generators or other equipment at a given load and runtime. It matters for backup duration, emissions, refueling logistics, testing cost, and emergency operations.

Read definition →