Georgetown City Council Approves Tax Incentives for New $160 Million Data Center Project

Georgetown Welcomes New Data Center Project

Georgetown, Texas, is gearing up for a significant development as the city council recently approved a property tax abatement for a new data center project. This decision took place during a city council meeting on September 24, where the council granted Austin-based Blueprint Projects the green light for its ambitious $160 million plan.

Location and Project Details

The proposed data center will occupy a 10-acre site at 1201 Westinghouse Road. Blueprint Projects plans to construct a 45,000-square-foot facility that will provide up to 10 megawatts of power capacity. Moreover, there’s potential for a second identical building in a future phase, with an overall investment of at least $90 million between both phases.

The first phase of the project includes a commitment for Blueprint to start construction by August 1, 2025, and to complete it by December 31, 2026. The property tax abatement agreement offers a 10-year tax break that equals 50% of the real property value, estimated to be worth about $885,000.

Future Phases and Incentives

Looking ahead, the second phase could kick off with a similar incentive structure. The company must invest another $45 million, begin construction by February 1, 2028, and wrap it up by December 31, 2029. This phase stands to gain around $1.8 million in incentives, as outlined in city documents.

Additionally, the city council passed a letter of intent aimed at attracting tenants to the new facilities. This incentive will include a 10-year, 50% abatement on business personal property but requires tenants to sign a lease and invest at least $1 million within three years of receiving a certificate of occupancy.

Community Support

Cameron Goodman, the economic development director for Georgetown, shared his excitement over the project in an email, stating, “The city is enthusiastic about the opportunity to work with Blueprint on the development of the data center project.” Goodman believes Blueprint Projects will be a great addition to the Georgetown community.

Company Background and Industry Overview

Blueprint Projects positions itself as a disruption-focused developer of high-performance compute-ready data centers. The company’s leaders have previously mentioned plans for a $1 billion investment project in Taylor and have successfully gained approval for another 52-acre data center development just last month.

Data centers like the one Blueprint is planning are essential for managing modern computing needs, referred to colloquially as “the cloud.” Despite not generating a large number of long-term employment opportunities, these data centers significantly increase a city’s tax base due to their substantial capital investments. However, the rapid growth of data centers in U.S. regions, including Central Texas, has raised concerns regarding their energy and water consumption.

Growing Presence in Central Texas

The demand for data centers is notably increasing in Central Texas. Companies such as Virginia-based EdgeConneX are eyeing projects worth approximately $1.3 billion in Bastrop County, and Caldwell County has already approved a similar project. Recently, other companies like Skybox Datacenters and Prologis have announced plans for additional facilities in Hutto.

Georgetown itself has experienced remarkable growth over the past few years, recently becoming the fastest-growing city of its size in the U.S., with a current population of around 96,000 according to the U.S. Census Bureau. In addition to Blueprint’s project, other manufacturers like GAF Energy and CelLink Corp. have also chosen to set up shop in this vibrant community.

A Bright Future Ahead

As the city council continues to push forward with its plans to attract new businesses, Georgetown is solidifying its position as a noteworthy location for data center development in Texas. The combination of innovative projects and the city’s favorable incentives could ensure Georgetown remains an attractive destination for technological investment.