A manufacturer of equipment used to cool data centers is exploring a nearly $80 million investment in Fort Worth.
Stellar Energy Americas is considering manufacturing such equipment at a 1.1 million-square-foot industrial site at 15060 Blue Mound Road in the AllianceTexas development, according to a tax abatement filing by the city of Fort Worth.
The Jacksonville, Florida-based company could invest $34 million in property improvements and $45.5 million in equipment.
No specifics on the amount of the tax abatement were included in the filing. Fort Worth City Council will consider the agreement at its Feb. 10 meeting.
The Blue Mound Road site is an empty industrial building by AllianceTexas’ developers, Hillwood, that was completed in the fourth quarter of last year.
City and company officials did not return calls on the proposed abatement agreement.
The state’s relatively cheap energy market, land and business-friendly policies have helped the state become a leader in the data center market. Last year, data centers and related industry accounted for 21% of all new demand among warehouse properties, according to a report from Cushman & Wakefield.
State and local officials offer a variety of tax incentives to attract data center investment to the area.
Google announced in November plans to invest $40 million in Texas on assets including data centers. The company currently has a large data center complex in Midlothian.
Data centers have also become a flashpoint for community opposition over concerns about energy and water use as well as noise. In southeast Fort Worth, for example, a data center project from Black Mountain faces opposition.
Bob Francis is business editor for the Fort Worth Report. Contact him at bob.francis@fortworthreport.org.
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