Commissioners approve Datacenter tax abatement

ELLIS COUNTY – The Ellis County Commissioners approved a 75% for seven years/100% for seven years on personal property tax abatement with Databank Datacenters, LLC in a unanimous vote at the most recent Commissioner’s Court meeting.

Red Oak City Manager Todd Fuller made a short presentation during the public hearing portion of the tax abatement item, with the bottom line hard to ignore. 

Currently the location where Databank Datacenters will be located at the corner of Batchler Road and Steinbeck Road, in the northeast area of the Red Oak City Limits on 288.8+ acres, is undeveloped land appraised in 2023 at $78,418. 

With the new deal that will change to $17,520,000 and personal property value worth $2,025,260,000.

Fuller said “the numbers are changing from $214 a year to $1,818,441 a year” during the period of the tax abatement and after the seven year tax abatement period the datacenter will yield over $7.3 million.

“This is high on investment on the rewards,” Fuller commented.

Databank Datacenters is also planning to lengthen Batchler Road allowing it to extend to Loop 9.

As for employees, the company will be hire 68 direct jobs and 107 indirect jobs. 

The direct jobs will pay $80,300, a strong increase from the county average of $55,000. 

Red Oak City Councilmember Ben Goodwyn spoke during the public hearing stressing the importance of local tax abatements.

“Five years ago our tax base was $1.7 B and today there is over $12 B committed to datacenters,” he said. 

“We have the opportunity to make Red Oak the Park Cities of Ellis County with that kind of tax base.”