Microsoft Corp. and Kansas-based QTS Realty Trust LLC are building over one million square feet of new data center space in North Texas.
The companies plan to develop seven data centers in Irving after receiving the City Council’s approval to begin construction on December 12. The developments may be linked to two previously discussed Irving initiatives, “Project Tiger” and “Project Armadillo.”
Microsoft is expected to construct four of the seven data centers, and the city will provide the tech giant with a 50% property tax abatement if it meets specific criteria.
As part of the conditions, Microsoft must enter a minimum 15-year lease on two of the buildings by the end of next year. The company must also enter a minimum 15-year lease on the other two buildings by the end of 2026, occupy a minimum of half a million square feet by the end of 2026, and increase the property’s combined taxable value by at least $200 million by 2027.
QTS is similarly eligible for the 50% property tax reduction as part of its plan to construct the other three buildings. QTS must occupy at least 500,000 square feet by 2028 and invest around $350 million in the property before January 2029.
Earlier this year, The Dallas Express reported that QTS was expanding its footprint in North Texas with an additional 472,000 square feet on Park Vista Boulevard. The company, which was acquired by Blackstone in 2021 for $10 billion, operates dozens of data centers in 13 states and another two in the Netherlands.
“While we cannot provide details on specific projects, the Greater-Irving Las Colinas Chamber of Commerce and the Irving Economic Development Partnership along with the city of Irving are committed to promoting economic development opportunities that support our city’s sustained growth and enhance an outstanding quality of life for our residents,” Beth Bowman, president and CEO of the Greater Irving-Las Colinas Chamber of Commerce, said in a statement, per Dallas Business Journal.
“As a part of Irving’s economic development strategic plan, the city is focused on attracting diverse companies from key industries, including high-value industrial projects like data centers, to call Irving-Las Colinas home.”