Douglas County, Colorado, Supports Data Center Development with Tax Rebate
Douglas County is poised to approve a $19.3 million tax rebate for a new Flexential data center in Parker, which has already received unanimous approval from local planning and town councils. This approach contrasts sharply with other Colorado communities, including Denver, Jefferson, Boulder, Larimer, Broomfield, and Monument, which have enacted moratoriums on data center development due to public concerns over water and power usage. The Parker project plans to use a closed-loop liquid cooling system and secure power from an existing substation without increasing residential rates.
Douglas County, Colorado, is moving to approve a significant $19.3 million tax rebate agreement for a new data center under construction in Parker, signaling a pro-development stance for the region's digital infrastructure. The agreement, set to provide a 100% rebate on business personal property taxes over 35 years, follows unanimous approvals from the Town of Parker's planning commission in January 2024 and its Town Council in February.
The facility is being developed by Flexential, a Colorado-based data center operator, and will be its fifth location in the state. This welcoming approach from Douglas County stands in stark contrast to several other communities along Colorado's Front Range, including Denver, Jefferson County, Boulder County, Larimer County, Broomfield, and Monument, all of which have enacted various temporary moratoriums on new data center permits citing public concerns.
Opponents in other areas often raise issues regarding water and power consumption. However, the Parker data center aims to mitigate these concerns by implementing a closed-loop liquid cooling system that requires a single fill and no subsequent evaporation. Additionally, CORE Electric Cooperative, which supports the project, will supply the 22.5-megawatt facility through an existing substation, assuring that it will fund infrastructure without increasing electric rates for residential customers. Parker officials anticipate the facility will generate $500,000 to $700,000 annually in local tax revenue for public services.