City documents state under the agreement, Switch would be paid 50% of the $0.01 sales tax revenue remitted to the city by the Texas comptroller of public accounts as an economic incentive in exchange for $80 million in real property improvements, business personal property and customer equipment acquisitions.
Assistant City Manager Brooks Bennett said the company plans to make a total of $250 million in investments to its facility under construction on the Dell campus over several years but agreed on a figure of $80 million by Dec. 31, 2026. The company would be reimbursed for 50% of the $0.01 sales and use tax revenue that the city has not designated for property tax reduction or economic development.
"If and when they spend that $80 million of taxable value, that will generate $1.6 million when it comes to the city, $400,000 of which would you share with Switch, which is performance based," Bennett said. "The more that they spend, the more that comes into the city, and the more that we share back. It's also important to know that based on that $80 million in taxable sales, that also generates $4.8 million to the state of Texas."
Council first approved the rezoning of the property around one of Dell's office buildings in July 2021 with construction starting in early 2022. At the time, the city had to create a new zoning district to facilitate the data center as it did not previously have such a designation available.
