9 Mar 2022

Press Release, Alerts

PFLUGERVILLE, Texas (March 9, 2022) — The Pflugerville City Council approved an economic development performance agreement (EDPA) between the Pflugerville Community Development Corporation (PCDC) Board of Directors and Austin Data Center 1, LLC, a joint venture owned by Skybox Datacenters (Skybox), a company that builds and operates world-class data center facilities, headquartered in Dallas, Texas,  and Prologis, a global leader in logistics real estate, during their regular meeting on March 8. The agreement was previously approved by the PCDC at a board meeting on February 26.

The project represents the second data center development between the two leading developers who plan to open a 141,000 square-foot data center facility in Pflugerville, creating up to 10 full-time primary jobs.

 “We look forward to working with Skybox Datacenters and Prologis on this project that is bringing significant investment, infrastructure improvements and a solid tax base for the City of Pflugerville,” said Amy Madison, PCDC Executive Director. “This project improves digital infrastructure availability to meet commercial data needs in the entire Austin region.” 

The performance agreement notes that Skybox owners and occupants intend to invest up to $548 million in capital expenditures which includes new construction and personal property inside Pflugerville city limits.

“Skybox is excited to launch our newest data center facility in Pflugerville, which offers innovative, sustainable and adaptable turn-key and powered shell solutions that will benefit our enterprise and hyperscale customers in Austin and across the country,” said Rob Morris, CEO of Skybox Datacenters. “The innovative incentives program designed in partnership with the City of Pflugerville offers direct benefits to data center tenants, with no speculative risk from the community, in order to attract the best possible users to deploy their compute at Skybox Austin I.”

As part of the 10-year performance agreement, PCDC will provide an expansion grant during the term capped at $225,000 annually and not to exceed a total grant of $1,575,000. To be eligible to receive the grant, Skybox must construct a facility prior to January 1, 2024, secure at least one tenant and certify a minimum investment of $50 million.

The PCDC grant allows Skybox to provide tenant reimbursement, rent reduction, or tenant improvements in any eligible year that Skybox meets all requirements. Skybox will determine which tenants receive the incentive benefit.

Construction for the new facility is scheduled to begin no later than December 31, 2022. 


View PDF version of release HERE