Round Rock City Council approves economic development agreement with Switch 

The Round Rock City Council voted 7-0 on Thursday, Dec. 15, to approve a Chapter 380 economic program agreement with Switch, Inc., a Las Vegas, Nev.-based data center provider currently building a new facility in Round Rock next to Dell Technologies’ headquarters. 

Switch announced in June 2021 that it would build the data center campus on land purchased from Dell Technologies located east of South Mays Street and north of Dell Way. 

The agreement requires Switch to invest at least $80 million in improvements to real property and additions to personal property within the City by the end of 2026. In consideration for Switch meeting its obligations, economic incentive payments will be issued based on 50 percent of the City’s one-cent sales and use tax revenue received from activity generated by Switch, which will be calculated on a quarterly basis through the end of the agreement in 2037. This agreement does not include any incentive payments from the half-cent of Round Rock’s sales tax that is designated to lower property taxes, nor does it impact revenue generated by the Type B economic development half-cent. The agreement is performance-based and includes clawback provisions should Switch not fulfill its obligations.  

Under the agreement, $80 million in taxable sales and purchases attributed to Switch would generate $1.2 million in net revenues to the City of Round Rock and $4.8 million to the state of Texas. 

“Switch has found a great home here in Round Rock to provide world-renowned data centers and technology solutions,” said Round Rock Mayor Craig Morgan. “This agreement offers them the opportunity to take their performance to the next level while generating a considerable amount of use tax revenues that will benefit our residents for years to come.” 

Switch’s data center currently under construction will be a minimum of 150,000 sq. ft. and will add 15 new jobs. Switch anticipates that it and its customers will expend approximately $250 million in improvements to real property, additions to personal property, and customer equipment acquisitions in Round Rock in the coming years. 

“Switch has been a dedicated community partner and will significantly contribute to Central Texas’ growing technology and innovation ecosystem,” said Jordan Robinson, President and CEO of the Round Rock Chamber. “We look forward to continuing to work with Switch as it grows and expands in our community.” 




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