The Data Center Divide
A policy snapshot ahead of the 2026 midterms. Mapping data center incentives, restrictions, and bans through legislation, regulations, and executive actions across all 50 states and 1,462 local jurisdictions.
Borden County
Mixed Data Center Policies
Texas combines substantial, long-term sales-tax breaks for qualifying large data centers with grid-connection studies, fees, and infrastructure costs that can make projects slower and more expensive. Some large facilities may also face emergency power reductions or grid-stability requirements; the tax benefits have demanding eligibility conditions.
Rating and summary from Texas statewide as there are no scored current or future laws outside temporary restrictions for Borden County.
Incentives
Tax benefits
Proposes a Chapter 312 property-tax abatement for SB Energy’s Borden County data center; the county FAQ identifies a ten-year, per-phase abatement, with terms subject to change and execution unverified. Proposed terms.
Specific to Borden County only.
pending · County project: Borden County Data Center projectProposed project-specific incentive; approval and executed terms remain unverified.Borden County SB Energy Chapter 312 Data Center Abatement Agreement
What this means
The proposed agreement would offer a large tax break—up to 85% or 90% for 10 years—to help make the project financially feasible. In return, it would require measures such as water and cooling limits, noise and setback rules, and regular reporting, so the benefit is substantial but comes with conditions.
People behind it
- SB Energy
Preparing the data-center abatement agreement with the county.
- Borden County Commissioners Court
The proposed agreement was presented to the Court for consideration and vote; the Court also developed an RV Infrastructure Plan related to the project.
Restrictions & requirementsHide restrictions & requirements8
The abatement agreement allows restrictions on water use and cooling systems, and enforceable noise limits and setbacks; the sources do not specify numerical limits. Water usage and cooling systems can be restricted.
Each phase is subject to the agreement independently, and any permitted occupant must follow the same agreement. Terms apply independently to Phases and Any permitted occupant is bound by the same agreement.
The company must submit annual compliance reports, and county employees and designated representatives must be allowed access to the property during the agreement. Compliance certification submitted annually and access to the property during the term.
The project agreement includes a rainwater collection system. A rainwater collection system is included in the abatement.
The company must fund public-safety measures and hire its own safety and EMS personnel. The stated payment terms include $35,000 monthly for emergency services during construction before abatement payments begin, and $60,000 monthly ($720,000 annually) for emergency medical services during the abatement period. The company would be required to hire their own safety and EMS personnel and monthly payment for Emergency Services during construction.
The proposed agreement requires annual PILOT payments: at least $1.4 million per phase, with at least $2.4 million total across phases beginning in year 5. Minimum $1.4M Annual Pilot Payment per phase and beginning in year 5.
Under SB6, the data center must pay interconnection costs and shed load first during emergencies. Pay for interconnection costs and shed load first.
The county’s stated process required a commissioners court vote on the reinvestment zone and abatement, and the FAQ said construction would begin following approval. The reinvestment zone and abatement will be voted on January 27, 2026 and Construction would begin following approval.
Benefits & exceptionsHide benefits & exceptions3
A temporary property-tax reduction: the FAQ lists a 90% abatement for 10 years and also an 85% abatement for 10 years per phase. It labels the phase details subject to change, so the listed rates are not fully consistent. The stated abatement terms
The agreement’s terms apply independently to each phase, and any permitted occupant is bound by the same agreement. This allows phases and permitted occupants to operate under the abatement framework. Terms apply independently to Phases
A rainwater collection system is included in the abatement. The FAQ says excess collected water may be shared with the community, while drinking or municipal distribution requires regulatory approval. A rainwater collection system is included
Sources
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