Douglas County approves $19.3 million tax rebate for Parker data center
Douglas County commissioners unanimously approved a $19.3 million tax rebate for a Flexential data center under construction in Parker, Colorado. The incentive covers 100% of the county's share of the business personal property tax over 35 years. The decision faced opposition from residents concerned about job creation, the selection process, electricity demand, water use, and noise.
Douglas County commissioners recently voted unanimously to approve a $19.3 million tax incentive package for a Flexential data center currently under construction in Parker, Colorado. The agreement will rebate 100% of Douglas County’s share of the business personal property tax for the facility over the next 35 years, applying to equipment and machinery rather than land and buildings. This decision follows prior approvals granted by the Town of Parker in 2024.
Commissioners, including George Teal, defended the vote not as a selective tax break for Flexential, but as a broader rejection of Colorado’s business personal property tax, which they view as a disincentive for investment. They indicated support for similar rebates for businesses of any size to help Colorado compete for economic development projects. Officials clarified that Flexential would continue to pay all other applicable taxes, including real property, school, and fire district taxes.
The incentive agreement faced considerable public opposition during the hearing. Residents questioned the justification for a $19.3 million incentive for a project expected to create relatively few jobs and raised concerns regarding the county's selection process for exemptions. Additionally, critics voiced worries about the data center’s electricity and water demands, potential noise pollution, and the possibility that taxpayers or utility customers might ultimately bear the infrastructure costs.
Jack Faunce, Flexential's vice president of procurement, addressed some of these concerns, stating that the planned 250,000-square-foot facility will use a closed-loop liquid cooling system to minimize water consumption. He also noted that CORE Electric will supply electricity for the 22.5-megawatt facility through an existing substation, with CORE publicly supporting the development and claiming it will not increase residential electric rates. Faunce even suggested the agreement could lower electric rates by increasing overall electricity sales for the utility.