Microsoft and QTS Realty Trust LLC are set to build seven large data centers in the Irving area of Dallas, Texas.
As reported by the Dallas Biz Journal, Irving City Council approved separate incentive packages for each company’s projects.
Microsoft is expected to build four of the seven data centers, with the city providing the tech giant with a 50 percent property tax abatement on the condition it meets specific criteria.
Microsoft must enter a minimum 15-year lease on two of the buildings by next year and a minimum 15-year lease on the other two buildings by the end of 2026. In addition, the company must 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.
Details of Microsoft’s projects have not yet been shared.
Kansas-based QTS is also eligible for a 50 percent property tax reduction for its plan to construct three data centers. It must occupy at least 500,000 sq ft (46,450 sqm) by 2028 and invest around $350 million in the property by January 2029.
The tax abatement for QTS is applicable for its three previously filed projects in Irving. The first, DC3, is on the company’s existing 55-acre campus at 6431 Longhorn Drive. DC3 spans 415,900 sq ft (39,000 sqm) and offers 43MW.
Also on the site, DC1&2 span 700,000 sq ft (65,000 sqm) and offer 75.2MW of critical power.
The tax abatement also applies to QTS’ DC5 and DC6 facilities at 6300 Longhorn Drive. The company re-filed to build DC5 last year after originally filing for the $180 million project back in 2022. The company filed to build DC6 at the same location earlier this year.
“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.
Blackstone-owned QTS also operates campuses in Fort Worth and San Antonio.
Microsoft currently has eight data centers, both operational and under development, in Texas, all of which are located in San Antonio. Its most recent Texas development was filed in July this year.
Lumen and Cogen also have a presence in the Irving area of Dallas.
