The Round Rock City Council recently reached an agreement with Las Vegas-based data center provider, Switch, Inc., regarding its new facility currently under construction next to the Dell Technologies headquarters. In a December 15 release, the council announced unanimous 7-0 approval of a Chapter 380 economic program agreement with Switch to include at least $80 million in city improvements by the end of 2026.

Built on land purchased from Dell Technologies located east of South Mays Street and north of Dell Way, the new data center will be a minimum of 150,000 square feet and will add over 100 new jobs. According to the release, Switch announced plans for the data center campus in June 2021, anticipating that the facility and its customers will expend approximately $250 million in improvements to real property, additions to personal property, and customer equipment acquisitions in Round Rock in the coming years.

“Switch has been a dedicated community partner and will significantly contribute to Central Texas’ growing technology and innovation ecosystem,” said Jordan Robinson, President and CEO of the Round Rock Chamber, in the release. “We look forward to continuing to work with Switch as it grows and expands in our community.”

This new agreement requires Switch to invest at least $80 million in improvements to real property and additions to personal property within the city by the end of 2026. In return, the company will receive economic incentive payments (based on 50 percent of the city’s one-cent sales and use tax revenue received from activity generated by Switch), calculated on a quarterly basis through the end of the agreement in 2037.

The release further outlines that $80 million in taxable sales and purchases attributed to Switch would generate $1.2 million in net revenues to the City of Round Rock and $4.8 million to the state of Texas, under the agreement.

“Switch has found a great home here in Round Rock to provide world-renowned data centers and technology solutions,” said Round Rock Mayor Craig Morgan. “This agreement offers them the opportunity to take their performance to the next level while generating a considerable amount of use tax revenues that will benefit our residents for years to come.”

For more detailed information about the agreement, read the full release on the City of Round Rock website.