Temple council approves Rowan data center tax break, $38M investment deal after months of push back
The Temple City Council approved a $38.5 million infrastructure deal and tax abatement for Rowan Digital Infrastructure's final data center project, despite months of resident pushback. The deal includes significant investments in water infrastructure and new development requirements for data centers in the city. Opposition groups continue to express skepticism about the project's benefits and the council's motivations.
The Temple City Council has approved a tax abatement and a substantial $38.5 million infrastructure agreement for Rowan Digital Infrastructure's final data center development, despite ongoing vocal opposition from community members. The approval, made at a September 17 meeting, encompasses development requirements, infrastructure responsibilities, and restrictions on the use of city water and wastewater systems.
Rowan's investment includes a $25 million contribution to the South Temple Water Infrastructure Capital Program, aimed at increasing water capacity in the southern and southeastern parts of the community. Additionally, Rowan committed a voluntary $13 million Cooperative Endeavor Contribution, with $10 million for an Aquifer Storage and Recovery project and $3 million for a community center, pending voter approval. Nathanial Brown of Rowan emphasized that water infrastructure was a primary focus for their investment, recognizing it as a top concern for Temple residents.
Despite Rowan's commitments, residents, including Joe Royer, co-founder of Temple Stands Together, remained skeptical, questioning the city council's motivations and the necessity of tax incentives for the data center projects. Tensions ran high during the council meeting, with some residents nearly removed and Councilwoman Zoe Grant addressing disrespectful language from the public.
In related actions, the council approved amendments to Rowan's existing Tax Abatement Agreement, strengthening requirements related to tax benefits and temporary electrical generation. They also approved Code of Ordinance updates requiring Utility Service Agreements for industrially zoned developments and amendments to the city's Unified Development Code. These amendments establish minimum development standards for new data centers, mandating closed-loop cooling systems, buffering, traffic impact studies, and conditional use permits for standalone data centers. Furthermore, the council approved the voluntary annexation and Planned Development–Light Industrial zoning for Rowan's Project Lasso property, bringing it under city jurisdiction and codes. Neighboring cities Killeen and Belton are also reportedly considering implementing data center-specific regulations.