'It will change our rural town': Tax abatement for $7 billion Texas data center approved

News Clip1:26KTXS News·Sweetwater, Nolan County, TX·4/14/2026

Nolan County, Texas, has approved a decade-long tax abatement for Crusoe Energy Systems' $7 billion, 200 MW data center project in Sweetwater. This approval is expected to bring significant economic benefits, including jobs, with safeguards in place for water usage and the project self-supplying electricity.

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Gov: Nolan County, Commissioner Tommy White
Nolan County Commissioner Tommy White announced the official authorization of a decade-long tax abatement for a $7 billion, 200-megawatt data center project by Crusoe Energy Systems. White indicated that securing this approval was crucial, as the development would likely have gone to a neighboring county otherwise. The project is expected to generate approximately 2,000 construction jobs, with the hope that employees will contribute to the local economy in Sweetwater and Nolan County. Concerns have been raised regarding the enforcement and protection of the promised benefits. KTXS News questioned the safeguards in place, to which Commissioner White responded that the contract guarantees benefits and includes stringent water restrictions and safeguards for the aquifer. The agreement mandates water meters on wells, with penalties for any harm to the aquifer. Regarding electricity, the data center will provide its own power, aiming to avoid impact on the local grid and potentially enhance it. While some residents view the project's financial impact as a potential catalyst for community improvements, questions persist about the long-term guarantees and the project's overall influence on the rural town.