Fort Worth Delays Tax Incentives for 1B-Plus Data Center

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Fort Worth City Council is postponing a critical vote regarding tax incentives for a proposed $1.1 billion data center campus in western Fort Worth. 

The decision follows growing concerns from local residents and a desire among council members to establish more robust regulations for the rapidly expanding sector. The Dallas Business Journal reported that the project is being spearheaded by Edged U.S., a subsidiary of Darien, Connecticut-based Endeavour Energy. The developer is seeking a 10-year tax abatement for 50 percent of business personal property taxes — or taxes paid on the appraised value of the equipment a business owns and uses — an incentive estimated to be worth about $18.2 million.

The proposed two-building campus is slated for a 186-acre site at the southeast corner of I-20 and Chapin School Road, just north of the 5,200-acre Veale Ranch master-planned community.

Taylor Baird, a partner at PMB Capital, said during the Tuesday council meeting that the proposed tax abatement serves as a vital accountability mechanism for the city. He argued that the agreement would allow officials to enforce quality standards and provisions that exceed standard municipal ordinances.

Despite these arguments, nearly 20 residents voiced opposition during the meeting, citing concerns over noise and long-term impact. District 3 council member Michael Crain, who motioned to table the vote until May 12, cited a need for better parameters before moving forward.

Crain proposed adding requirements to the agreement, including strict compliance with noise ordinances and mandatory annual reporting, according to the outlet. Mayor Mattie Parker added that the delay reflects a broader national conversation regarding the trajectory of data center development rather than the specific quality of the Edged project.

City officials estimate the project will generate $34.9 million in revenue for Fort Worth over a decade. Edged also committed to creating at least 50 jobs with a minimum annual salary of $73,000 across two phases of development.

To mitigate environmental concerns, Edged plans to utilize a “closed loop” waterless cooling system at the facility. Bill Greenwood, director of development for Edged Energy, stated this technology significantly reduces water consumption compared to traditional evaporative cooling methods.

The regulatory pause comes as the Dallas-Fort Worth metroplex continues its ascent as a global data center hub. Market research from JLL suggests that Texas is on track to become the world’s largest data center market by 2030.

Eric Weilbacher

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