The City Council of Irving, Texas has granted Microsoft Corp. and QTS Realty Trust permission to construct a combined total of seven data centers in the area. In order to encourage development in the town, tax incentives have been offered to Microsoft with certain conditions attached.
To receive these incentives, Microsoft must agree to rent two buildings by the end of next year and an additional two by 2026. By 2026, they must also occupy at least 500,000 square feet and invest a minimum of $200 million into personal property.
In return for meeting these requirements outlined in their agreement with the city council, Microsoft is eligible for a 50% property tax abatement.
QTS Realty Trust will also benefit from this incentive package as they are eligible for a similar tax abatement while developing three data centers totaling approximately one million square feet on Longhorn Drive.
As part of their agreement with Irving’s City Council, QTS is required to occupy at least half a million square feet by the end of 2028 and invest around $350 million into their properties by January 2029 in exchange for receiving rebates on property taxes.
