Parker data center could get $19M tax rebate from Douglas County
Douglas County commissioners are set to approve a $19.3 million property tax rebate for a new data center being developed by Flexential in Parker, Colorado. This decision comes amidst broader debates in Colorado and across the US regarding data center development, with many Front Range governments restricting or banning them due to concerns about water and energy consumption. The Town of Parker has already unanimously approved the project's zoning and created a data center overlay district.
Douglas County commissioners are on the verge of approving a $19.3 million property tax rebate agreement for a new data center project in Parker, Colorado. The incentive would provide a 100% rebate on Douglas County's share of property taxes generated by the facility over 35 years. The project, led by Colorado-headquartered Flexential, is under construction on a 17-acre site within the Compark Village development and is expected to involve a $205 million investment, creating 16 to 50 permanent jobs.
This move by Douglas County contrasts with other Front Range governments, including Denver, Jefferson, Boulder, Larimer, and Broomfield counties, which have enacted moratoriums or restrictions on data center development due to concerns about water and energy consumption. CORE Electric Cooperative will provide electric service, stating the facility will fund its own infrastructure. Parker officials estimate the data center will generate $500,000 to $700,000 annually in local revenue, although the Town of Parker is not offering tax incentives.
The Town of Parker's planning commission and Town Council both unanimously approved the project, including a rezoning request and the creation of a data center overlay district, in early 2024. Flexential states its Parker facility will use a closed-loop liquid cooling system with a water usage effectiveness target of zero. The broader debate across Colorado involves critics raising concerns about power demand and water use, while proponents highlight job creation, tax revenue, and national security implications related to AI infrastructure.