The Ellis County Commissioners’ Court last week approved a tax abatement request from AREP for another data center in Red Oak, following a public hearing.

AREP is located on a 43.75-acre property in the southeast corner of State Highway 342 and FM 664. It is located diagonally across from the other two data center providers in the city, Google and Compass.

Red Oak economic development director Lee McCleary said the project would create a total of 64 jobs, both directly and indirectly, and the average salary of $80,368 would be 131 percent above the Ellis County average.

The total capital investment expected is more than $2.7 billion, of which 70 percent of the county’s building and improvement taxes and 100 percent of business personal property taxes would be abated for seven years. Upon investment of more than $300 million, the 70 percent would increase to 75.

County Judge Todd Little said the clock on the abatement would not begin until a certificate of occupancy is issued.

Red Oak city manager Todd Fuller told commissioners the start of the project depends on the availability of enough electricity not only for AREP, but also a larger area including Midlothian, southern Dallas County and Kaufman County.

County assistant attorney Greg Wilhelm noted that Red Oak’s abatement agreement with Red Oak is for a 10-year period, but that Ellis County is limited to a maximum of seven years. Wilhelm also went through a number of changes to the language of the agreement.

Wilhelm said the county would have the option to ratify any assignment to a company that AREP provides, which alleviated Little’s concern about a potential bad actor getting an assignment.

All members of the Commissioners’ Court were present.