Data center talks see officials refresh tax incentives
Bastrop County officials approved updated tax abatement guidelines for new businesses, including data centers, to allow negotiation on environmental protections like water usage, noise, and light pollution. This decision comes amidst public concern over data center growth and calls for a moratorium, which county officials state they cannot enact without state authority.
Bastrop County Commissioners recently approved updated tax abatement guidelines designed to strengthen their negotiating power with new businesses, particularly data centers, regarding environmental standards and community benefits. The revised policy mandates a minimum investment of $20 million for new projects ($10 million for expansions) and the creation of at least 25 jobs, with a quarter designated for Bastrop County residents.
The decision followed significant public discussion, with residents expressing concerns about the environmental impact of data center expansion and questioning the use of tax incentives. Commissioner Butch Carmack emphasized that tax abatements are the county's primary tool for negotiating conditions such as water usage, noise, and light pollution, given state-imposed limitations on local authority over private property development.
County Judge Gregory Klaus clarified that the county lacks the power to prevent data centers from establishing themselves or to unilaterally impose a moratorium on their construction, an action many residents have called for. Commissioner David Glass highlighted the legal challenges faced by Hill County, which rescinded a data center moratorium after a federal lawsuit, reinforcing that only state authority could enable such a ban.
Local attorney Nick Lealos underscored residents' desire for greater transparency and involvement in the development process, proposing a "Bastrop Bill of Rights" that includes public information disclosure and a citizens' advisory group. Advocates like Linda Curtis of the League of Independent Voters urged commissioners to explore additional options beyond tax abatements to address community concerns.