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Regbase

The Data Center Divide

Pecos 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 Pecos County.

current law · County measure
Establishes a Chapter 381 economic development agreement between Pecos County and Lancium, LLC to support economic development and stimulate business and commercial activity.Pecos County–Lancium, LLC Chapter 381 Economic Development Program Agreement (September 2021)
Benefits & exceptionsHide benefits & exceptions2
  • Pecos County provides Lancium LLC with economic-development tax benefits for the project, including rebates or other relief from county ad valorem taxes on qualifying property, subject to the agreement’s conditions and term.

  • The agreement remains effective from September 7, 2021, through September 6, 2041, giving the project a long-term period in which to receive the contracted economic-development benefits.

Sources

Specific to Pecos County only.

failed · Unincorporated areas; city limits are governed by the City of Fort Stockton or the City of Iraan
Does not establish county zoning, permitting regulations, building codes, or fire codes for data centers, wind energy, or solar energy projects, directing inquiries to the County Economic Development Director or Pecos County Judges’ Office.Pecos County Rules, Regulations and Guidelines – Data Centers, Wind and Solar Energy Project Inquiries

What this means

The county says there are no zoning or permitting regulations and lists only an on-site sewage permit, which lowers local hurdles for data centers outside city limits. State and federal rules still apply, and city rules govern projects within Fort Stockton or Iraan, so the benefit is limited in scope.

Restrictions & requirementsHide restrictions & requirements4
  • An On-Site Sewage Facility permit is required from Pecos County Health and Sanitation.

  • Data centers must comply with applicable Texas state laws, rules, regulations, and federal guidelines.

  • A project that cuts across a county road must contact the commissioner for the relevant precinct regarding easement or right-of-way matters.

  • Projects located within the City of Fort Stockton or the City of Iraan must comply with the applicable city-limit rules and regulations.

Benefits & exceptionsHide benefits & exceptions6
  • Unincorporated Pecos County has no zoning or permitting regulations, so data-center projects are not subject to county zoning or general county permitting requirements. State and federal laws still apply, and city-limit projects must follow the applicable city rules.

  • Pecos County does not require building codes or building permits, except for an On-Site Sewage Facility permit. This reduces county-level permitting requirements for construction, although state and federal requirements remain applicable.

  • Pecos County has no county fire code, which removes a separate county fire-code requirement for projects outside city limits. Fire or occupancy issues may still be subject to other applicable laws and emergency-management review.

  • The county provides Guidelines and Criteria for Tax Abatement, creating a framework for qualifying projects to seek county tax abatements. The cited guidelines are for 2026, and eligibility and terms are governed by the applicable county guidelines and Texas law.

  • Pecos County reports Chapter 380 or Chapter 381 economic-development agreements, including agreements involving Lancium, Cormint/Fort Blocks, and Blockstream. These agreements provide a mechanism for negotiated local economic-development incentives, subject to their individual terms and Texas law.

  • The Commissioners Court agenda includes consideration of establishing the GW Ranch Reinvestment Zone and entering a tax-abatement agreement with Pacifico GW LLC under Texas Tax Code Chapter 312. The arrangement requires a public hearing, a resolution establishing the zone, court approval, and a $1,000 payment for local administrative processing costs.

Sources

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