The Denton City Council has approved amendments to Power Purchase Agreements and land leases with Core Scientific (NASDAQ: CORZ), paving the way for a substantial infrastructure investment in Denton. The decision, made during the council meeting on November 19, 2024, facilitates the addition of high-performance computing infrastructure and an office complex at the Core Scientific site near the Denton Energy Center. This initiative marks a $6.1 billion real property investment that is projected to generate $194 million in property tax revenue for Denton over the first decade following project completion.
The agreement involves the lease of 78.85 acres of city-owned land to Core Scientific for private use, with the company responsible for the costs of necessary electrical interconnection infrastructure improvements. While Core Scientific is seeking incentives and abatements from the State of Texas, no tax incentives were requested from Denton itself.
Economic benefits of the project are considerable, with expectations of creating approximately 300 full-time, on-site jobs and over 200 additional independent positions. The total positive financial impact on Denton’s taxing bodies is anticipated to exceed $430 million over ten years.
City Manager Sara Hensley commented on the project’s importance, highlighting Denton’s growth as a hub for corporate investment and innovation, particularly in high-performance computing, which aligns with the city’s development goals and educational opportunities.
The project’s completion is slated for 2027, after which Denton Municipal Electric (DME) will integrate the increased power demand into its 100% renewable energy portfolio. Core Scientific will also construct two new on-site substations, addressing transmission system impacts by 2029 pending approval from the Regional Transmission Group and ERCOT.