The Round Rock City Council approved an economic incentive deal on Thursday, Feb. 24 to bring a second major data center project to the city in less than a year.
The Round Rock Transportation and Economic Development Corporation and City Council approved the deal with Sabey Data Centers at their respective regular meetings Thursday night.
Sabey Data Centers, headquartered in Seattle, Washington, is one of the oldest and largest private multi-tenant data center operators/developers in the world. The company currently operates 2 million square feet of data center space in both Washington State and New York State, and is currently looking to develop its next global data center campus in Round Rock. .
Sabey intends to demolish the old Sears Teleserv building located at 1300 Louis Henna Blvd. and build two buildings. The agreement requires Sabey to invest at least $185 million in property improvements and $5 million in new business equipment and personal property as part of the project and create 20 core jobs over five years.
Round Rock has recently emphasized technology as a target industry for economic development.
“We are thrilled to welcome Sabey Data Centers to Round Rock,” said Jordan Robinson, Interim President and CEO of Round Rock Chamber. “The all-new Sabey data center campus will continue to strengthen Round Rock and Central Texas’ position as a global hub of technology and innovation.
In return for Sabey meeting its obligations, which include the demolition of the former Sears Teleserv Building by December 31, 2022, Economic Incentive Payments (EIPs) totaling $1 million will be issued through the fund. of the city’s Type B sales tax, divided into two payments based on when the company completes the demolition and receives a certificate of occupancy for the new facility. The agreement is performance-based and includes clawback provisions if Sabey fails to meet its obligations.
The city’s economic development program, which includes incentive payments like the one approved Thursday night, has generated an additional $494.9 million in net taxes to be used on City of Round Rock services and programs since its inception there. is over 15 years old.