SWEETWATER, Texas — A $7 billion data center project is moving forward in Nolan County after county commissioners approved a 10-year tax abatement during a Monday meeting. Officials suggest that this deal could mark a defining moment in the county’s economic future. The project, led by Crusoe Energy Systems, includes a 200-megawatt facility and is one of the largest-scale proposals the county has reviewed.
Commissioners approved a 10-year tax abatement proposal on Monday morning (KTXS/Tavish Leffall).
Nolan County Commissioner Tommy White, who represents Precinct 3, explained that the tax abatement was key to keeping the massive project in Nolan County.
“If Crusoe didn’t come here, then they most likely would have gone to a neighboring county,” White said. “During the construction phase, there will be roughly 2,000 workers here who will hopefully spend money in Nolan County.”
The project is expected to generate more than $3 million annually through payments in lieu of taxes. In addition, it will provide over $2 million annually in charitable contributions to Nolan County.
The $7 billion data center is part of a growing wave of large-scale data center developments across Texas (KTXS/Tavish Leffall).
With the deal moving forward, questions arise about how the county will track and enforce the agreement. KTXS asked, “What safeguards does Nolan County have in place to guarantee that this project delivers on the benefits being promised?”
According to White, the agreement includes measures intended to hold the project to its commitments.
“Those benefits are guaranteed in our contract. We built in water restrictions and safeguards. If they start to harm the aquifer, they will be penalized. We feel like we have safeguards all the way around this project,” he said. “There will be meters on the water wells and we will be receiving reports. Some people are worried about their electricity, but the data center will be providing its own electricity. It shouldn’t impact residents at all.”
The project will be led by Crusoe Energy Systems (KTXS/Briannagh Dennehy).
Local resident Amie Joan Galindo believes the benefits outweigh the drawbacks.
“I think our community needs it. We need to see some improvements here,” Galindo said. “Our children deserve new playgrounds. The homeless shelter could use some help. The streets could be improved as well.”
Other Texans, like Hagan Deeter, are less optimistic about the project.
“There will be new people coming in. They won’t appreciate the old-school feel of Nolan County. It will change our rural town,” he said. “Bringing in this new data center will take away from what this town truly means to us.”