HUTTO – Development of what is planned to be one of the largest data centers in the country is another step closer as the Hutto City Council approved a 50% tax abatement zone for Skybox PowerCenter Austin. Also known as the Hutto Data Center Campus, the site is located along the Texas 79 corridor at 3399 County Road 132 in the Megasite.
Dallas-based Skybox Datacenters and its partner, San Francisco-based Prologis Inc., through their joint venture Hutto Data Center Campus LLC, will make a total combined minimum capital investment of at least $10 billion in improvements and tangible personal property on the land within ten years, according to City documents. In return, the city will exempt 50% of the taxable value of tangible personal property at the development for 10 years.
“I think this will be a game changer for the city of Hutto,” Mayor Pro Tem Peter Gordon said regarding the project’s potential for exponential increases in city tax revenues even with the abatement.
The incentive proposal, allowed under Texas Tax Code Chapter 312, was first approved June 6, but details of the incentive were not available at that time because of the rigorous legal process needed for approval. Final details were approved at the July 20 meeting.
The 224.5 acre tract purchased by the developers for the data campus was voluntarily annexed to the city during the June 15 council meeting. It was zoned for light industrial use and a municipal services agreement was approved during the same meeting.
The resolution approving the abatement states that developers will build a total of approximately 3.7 million square-feet of space for data centers and related activities.
Skybox lists Fortune 100 and Fortune 500 businesses among their clients. The initial phase of development is anticipated to be ready for operations in late 2024.
