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.
Sherman 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 Sherman County.
current law · County measureSherman County's tax-abatement guidelines expressly identify a computer/data center as an eligible facility for potential property-tax abatement, making this a county incentive applicable to qualifying data-center development.Sherman County Tax Abatement Guidelines and Criteria (2025)
People behind it
- Sherman County Commissioners Court
Adopted and administers the county's tax abatement guidelines and criteria.
- Sherman County, Texas
County government responsible for administering the Tax Abatement Guidelines and Criteria.
Restrictions & requirementsHide restrictions & requirements7
A data center must meet the county’s eligibility requirements for a tax abatement, including specified facility, investment, and development criteria.
The tax-abatement application must be submitted before construction, expansion, or other improvements begin; starting work before approval may disqualify the project.
The property must be located in a designated reinvestment zone before the county may grant a tax abatement.
The county must provide public notice and hold a public hearing before approving a reinvestment zone or tax-abatement agreement.
The project must be subject to a written county-approved tax-abatement agreement containing investment, construction, employment, and completion commitments.
The recipient must maintain the required investment and other contractual commitments during the abatement period; noncompliance may cancel the abatement and require repayment of previously abated taxes.
The tax abatement is limited to the term and percentage specified in the agreement and is not indefinite.
Benefits & exceptionsHide benefits & exceptions6
Sherman County may designate qualifying project sites as reinvestment zones and enter written, discretionary property-tax-abatement agreements for eligible commercial or industrial facilities, including data centers. County approval and the agreement must be obtained before construction or installation begins.
Qualifying new facilities, expansions, and modernization projects may receive a property-tax abatement on the increased taxable value from eligible real-property improvements and newly installed tangible personal property; preexisting value, inventory, and supplies are excluded.
The property-tax abatement may last for a negotiated period of up to 10 years, subject to the agreement and County approval.
Eligibility and continued benefits depend on meeting the County's investment, employment, economic-development, operational, completion-deadline, and other performance requirements.
The County may terminate or reduce the abatement and recapture abated taxes if the project fails to meet its commitments or becomes delinquent on required taxes.
An abatement agreement may continue after a transfer to a new owner if the transfer is approved and the successor assumes the agreement's obligations.
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