← All glossary terms

Finance, Valuation, and Incentives

Tax abatement

Tax abatement reduces or exempts taxes for a defined period or amount to encourage investment. For data centers, abatements may be tied to capital investment, jobs, equipment, local approvals, and performance commitments.

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Categorical exclusion

Categorical exclusion is a category of federal action that normally does not require detailed NEPA analysis because significant environmental effects are not expected. Extraordinary circumstances can still prevent its use.

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Critical load

Critical load is the IT or facility load that must remain powered to avoid service interruption. It drives UPS, generator, switchgear, distribution, and redundancy design more directly than total campus load.

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ERE

Energy Reuse Effectiveness accounts for energy that is reused outside the data center rather than wasted. It is less common than PUE but can matter for heat reuse, district energy, and sustainability narratives.

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