← All glossary terms

Finance, Valuation, and Incentives

Property tax

Property tax is a local tax on real property and sometimes personal property, depending on jurisdiction. Data center projects can materially expand a local tax base, but abatements or exemptions can change the net public revenue story.

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Colocation

Colocation is a model where customers deploy IT equipment in a third-party data center rather than owning the entire facility. The provider supplies space, power, cooling, security, connectivity, and operating services under commercial agreements.

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System impact study

System impact study evaluates how a proposed interconnection affects safety and reliability of the transmission or distribution system. It identifies needed system modifications, constraints, and potential adverse impacts under defined assumptions.

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CDU

Coolant Distribution Unit transfers heat between facility cooling loops and IT liquid-cooling loops while controlling flow, temperature, pressure, and filtration. CDUs are becoming a core design component for direct-to-chip AI deployments.

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