Carson County Commissioners have approved a comprehensive tax abatement agreement with Fermi America to support the development of a major data center and energy generation project. The decision was made during Monday’s regularly scheduled meeting of the Carson County Commissioners Court, marking a significant step toward what local officials describe as a long-term investment in the region’s economic future.
According to Carson County Judge Dan Looten, the abatement agreement is divided into two main components — one addressing the generation of electricity and the other tied to the data centers that will consume that power. The structure is similar in part to previous agreements the county has used for renewable energy projects such as wind and solar farms, but it includes new elements to accommodate the unique needs of large-scale data operations.
“There’s a generation side of it, what they’re going to generate in megawatts, and then there’s the usage side of it, which is for the ‘hyperscalers,’ for the data centers themselves,” Looten said. “So, we structured it per megawatt like we do a lot of our wind turbines, and our solar farms are all abatements always done on the megawatts.”
Two-Part Structure Reflects Dual Development Focus
The first part of the abatement applies to the generation of power — a standard model used across Texas counties to attract energy producers. For Carson County, this portion follows a similar rate structure to existing projects, at approximately $2,500 to $2,750 per megawatt.
The second part applies to the square footage of the hyperscale data centers that will use that generated electricity. The agreement establishes a rate of $3 per square foot for the data center facilities, a figure Looten said reflects current market standards while still encouraging investment in large, high-value infrastructure.
Plans call for an extensive build-out across 15 development phases, which could ultimately stretch over a 25-year timeline. Each phase will receive a Certificate of Delivery (COD) upon completion, activating a ten-year abatement period for that segment.
“The abatement agreement we just signed was for 15 phases, so when they complete so many buildings and so much generation, we will have a COD on that portion of that phase, and that phase will go into a ten-year abatement agreement,” Looten said.
Massive Data Center Plans
At the center of the agreement is a proposed one-million-square-foot data center complex, referred to by project officials as the “HyperGrid campus.” The initial plans suggest that construction will occur in stages, with each phase including at least 500,000 square feet of development.
“We’ve said what’s going to be a minimum of, per phase, 500,000 square feet, because a million-square-foot building right now has not been done in the data center world,” Looten explained. “We’ve done a lot of research, and we’ve talked to data ‘hyperscalers,’ people that have built data centers. So, we had to structure something that’s never really been done before, and we’re structuring to make that possible.”
Looten noted that most existing data centers are significantly smaller — around 250,000 square feet — meaning the Carson County project could potentially be broken up into multiple buildings rather than a single large facility. The abatement’s flexibility allows for either configuration.
“Maybe a million-square-foot building isn’t the right way to go. Maybe smaller buildings would go. But we know they’re going to produce electricity, and we know they’ve got to sell that electricity to the data centers, so there’s got to be buildings built,” he said.
Economic Impact and Local Benefits
County officials believe the Fermi project could have wide-reaching effects on Carson County’s economy. In addition to the long-term property tax base expansion, the project is expected to generate construction jobs, trade opportunities, and workforce training partnerships.
Looten said approximately three million square feet of land has already been cleared for the first phase of development. Fermi plans to use a nearby Texas Tech facility to conduct training programs for workers in various trades needed for the build-out.
“Fermi understands there’s a lot of trades they’re going to have to train people at,” Looten said. “They’re going to do their own trainings at the Texas Tech facility there on that land. I think that’s going to be a great and very positive thing for our county.”
Fermi America community lead Trent Sisemore said community feedback about the project has been largely positive, particularly with regard to its potential effect on local tax burdens.
“This really means down the road that citizens in Carson County might not even have to pay any property tax,” Sisemore said. “It’s going to be such a minuscule amount, and I would be excited about that, as a citizen of any county or city municipal government, to know that I wasn’t going to be paying tax, that someone else is going to be paying that tax for me — and that’s Fermi in this situation.”
Addressing Infrastructure and Environmental Considerations
During the commissioners’ meeting, questions were raised regarding the project’s infrastructure needs, including water use and potential environmental or regulatory issues tied to the generation of electricity.
Looten acknowledged that discussions have taken place at both the state and local levels to ensure compliance and sustainability, noting that the project could involve a mix of power sources.
“On the generation side of it, whether it’s gas, solar, nuclear — at some point in time, any kind of generation of electricity — which is standard on our wind turbines, on the solar farms,” Looten said. “They’re all pretty standard having abatement in pretty close to that range.”
Looten emphasized that all parties are working to ensure responsible management of water and energy resources, adding that various regulatory agencies are already involved in oversight.
Training and Emergency Preparedness
Beyond economic development, the agreement also incorporates safety and community preparedness measures. Each year, Fermi will participate in training sessions with local emergency medical services and first responders.
This component, county officials said, ensures that the growing industrial footprint is matched by preparedness for potential emergencies, while also offering local agencies valuable training opportunities and resources.
Phased Growth and Long-Term Outlook
Under the terms of the agreement, Fermi will complete one phase per year, though the structure allows flexibility if certain stages take longer to finish. If the company continues developing on schedule, the abatement benefits could stretch across a 25-year window.
Looten said that while the scope of the project is ambitious, the phased approach allows both the county and the company to adapt as needed.
“Hopefully it works, but if it doesn’t, you know, get fully built out, we’re still covered, and we’re still going to be good,” Looten said.
Community and Regional Significance
The Fermi project is viewed by many local leaders as a long-term investment in the region’s future. Its combination of energy generation and large-scale computing infrastructure reflects a growing trend of hybrid developments across Texas, where abundant open land and existing power infrastructure make rural counties attractive to technology firms.
For Carson County, the agreement represents a chance to expand its economic profile beyond agriculture and traditional energy production. Officials hope the project will anchor new types of industry — particularly in data management, renewable power, and technical trades — while easing the tax burden on residents.
Sisemore described the initiative as a potential model for regional partnerships that balance growth and community benefit. “The county is getting paid for every megawatt produced and they’re also getting paid for every square foot that they build,” he said.
While no specific construction timeline has been set, both Fermi representatives and county officials said early planning and site preparation are underway.
Looking Ahead
As the project moves forward, the county anticipates continued collaboration with Fermi and state agencies to finalize details related to utilities, zoning, and workforce support.
Looten said he expects the partnership to yield long-term benefits for the county. “In the future, I anticipate we’ll be pleased with the partnership,” he said.
Officials also underscored that the abatement agreement includes safeguards to protect the county’s interests, ensuring that if only portions of the project are completed, Carson County will still benefit from its share of the revenue and infrastructure improvements.
If fully realized, the HyperGrid campus could stand among the largest data center developments in Texas, combining significant energy generation capacity with a technology-driven operational hub.
Although many details — including the project’s precise timeline, energy mix, and construction sequence — remain to be finalized, county leaders describe the agreement as a forward-looking investment designed to balance innovation with community stewardship.
