‘Enough concern today’: $1B data center stalls; city, residents raise questions about tax break

The Fort Worth City Council has tabled a vote on a significant 50% tax break for Edged Data Centers' proposed $1 billion waterless data center, following a March 31 meeting. The decision to delay the agreement, which would grant the company a property tax abatement for a facility on 186 acres in west Fort Worth's Veale Ranch, was driven by council members' questions about the project's local economic benefits and broader concerns regarding data center impacts. Council member Michael Crain, whose district encompasses the proposed site, requested a comprehensive report from City Manager Jay Chapa on how Fort Worth evaluates and approves data center projects. Other council members, including Charlie Lauersdorf and Jeanette Martinez, urged city officials to seek approval from the Electric Reliability Council of Texas (ERCOT) for data centers due to their substantial energy demands, with Martinez also emphasizing the need for restrictions on crypto and data mining facilities. Mayor Mattie Parker indicated that the vote would likely be rescheduled for a May 12 council meeting. Residents, including Benbrook resident Brenna Sestak and the newly formed 2871 Community Coalition, actively opposed the tax break, demanding the city create a data center-centric ordinance and conduct more research on the facilities’ environmental and economic impacts. They called for stricter zoning and environmental regulations, transparency from the developer, and third-party studies on noise, power usage, and water consumption. Edged Data Centers, represented by director Bill Greenwood, and PMB Capital partner Taylor Baird, defended the project, stating it would be "ultra efficient," utilize a closed-loop water recycling system, operate its own ERCOT-approved electrical substation, and adhere to noise limits. They projected the project would bring $47 million in revenue to Fort Worth over 10 years, despite the $16 million tax break. The council's delay aligns with Texas legislative leaders' recent prioritization of studying data centers' statewide impact on water, electricity, property, and economic growth ahead of the 2027 session. Mayor Parker acknowledged that the questions surrounding the tax abatement reflect a national concern about data center development rather than a specific issue with Edged's business practices.