Fort Worth's $18M data center tax break sparks fierce local debate
A planned data center in Fort Worth has sparked debate among local residents and officials. Dozens attended a recent meeting to voice concerns over water use, environmental impact, and financial transparency. The project, proposed by Edged Data Center, includes a request for significant tax breaks in exchange for job creation.
The facility is one of several major data center developments across Texas, with large-scale projects already underway in El Paso, Abilene, and Austin.
In June 2023, Fort Worth's city council approved zoning for 186 acres of land to accommodate the new data center. Edged Data Center has now applied for a 50% property tax abatement over 10 years. In return, the company promises to create 50 jobs, each paying an average of $73,000 per year.
The tax break would cost the city an estimated $18.2 million. However, officials project it would generate $49.3 million in revenue over the same period. The company has also pledged to use waterless cooling technology and comply with city and industry noise standards. Residents, organised under the 2871 Community Coalition, are pushing for full disclosure of water consumption, environmental studies, and clearer financial details. Their concerns reflect broader issues tied to data centers, which often consume vast amounts of electricity—enough to power hundreds of homes—and, in some cases, millions of gallons of water daily. The Fort Worth project is part of a wider trend in Texas. At least three major data center developments are currently in progress: Meta's 1-gigawatt AI facility in El Paso (set to open in 2028), Microsoft's 700-megawatt site in Abilene (originally planned for Oracle/OpenAI but now operational), and Elon Musk's Terafab chip factory in Austin, which could eventually require up to 1 terawatt of power. West Texas, in particular, has become a hotspot for such projects. In response to growing scrutiny, council member Michael Crain has requested a detailed report on how the city evaluates and approves data center proposals.
The Fort Worth City Council will now weigh the economic benefits of the data center against community concerns. If approved, the project would join a surge of large-scale developments across Texas, each with significant demands on local resources. The outcome of this decision could influence how future proposals are assessed in the region.
