Lancaster, Texas – North Texas is once again proving its status as a hub for technological innovation and infrastructure. A branch of the Japan-based NTT Group, NTT Global Data Centers Americas Inc. is looking at making a significant local investment. Potentially pouring up to $250 million into the project, the corporation is investigating the construction of a 225,000-square-foot data center in Lancaster.
NTT Global Data Centers Americas Inc. chooses strategic location in Texas
Situated on a 108-acre plot at the northwest corner of Sunrise and Belt Line roads, the proposed location emphasizes Lancaster’s increasing attraction to IT businesses. Although NTT still needs to decide, recent public records and city-level legislative moves show improvement. Approval of an economic development agreement comprising a range of incentives by the Lancaster City Council has helped to make the location even more appealing for NTT.
Under the agreement, NTT would have to occupy the facility by January 2028 and pledge at least $50,000 yearly to city-sponsored programs or events. The package also calls for the business to generate minimum 27 jobs paying an average salary of $80,000.
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NTT’s investment in North Texas will have massive economic and community impactÂ
The head of economic development for Lancaster, Shane Shepard, expressed optimism regarding the initiative. Data centers, according to Shepard, provide the city great financial advantages and create high-paying employment without appreciably taxing public resources like roads or schools.
Estimated to start at $110 million, the facility’s taxable value might rise to $250 million should further buildings be built on the site. Taking into consideration that it satisfies the provisions of the agreement, NTT would also be qualified for 10 years of real and business property tax credits.
For Lancaster, the entry of a significant company like NTT might signal a change in its economic path. City leaders are optimistic that the facility would not only increase local employment but also improve Lancaster’s reputation as a preferred site for next technological developments.
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NTT’s project awaits final key decisions
NTT is still considering numerous elements even with the good momentum before pledging to the project. These include a research on ERCOT capacity, comments from Oncor, energy provider, and possible state legislative changes. The business has 180 days to complete the purchase of the real estate under contract terms.
Declining to offer more comments, NTT has been silent regarding its intentions. Still, its history in North Texas points to a great probability of forward movement. Currently running a 230,000-square-foot data center in Garland, the company has earlier indicated intentions to grow at that location.
North Texas is slowly becoming a hotspot for data centersÂ
Thanks in great part to its central location, strong infrastructure, and business-friendly environment, North Texas has drawn data center investments. The possible project of NTT is only one of several well-publicized ones under progress in the area.
Plans are for Microsoft Corp. and QTS Realty Trust LLC to create over a million square foot data center facility in Irving. Former cryptocurrency mining site Denton is receiving a $6 billion make-over into a data center with artificial intelligence concentration. Dallas-based CyrusOne LLC, meanwhile, is looking at a $200 million project in north Fort Worth.
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NTT investment in North Texas
Having its North American headquarters in Plano, NTT is a worldwide pioneer in information technology and data center solutions. With around 195,000 employees globally, the corporation shows great dedication to the American market by running seven U.S. data centers.
The prospective Lancaster site highlights NTT’s strategy goal to increase its presence in important markets. For North Texas, it marks yet another turning point in the development of the area as a worldwide technological center.
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The tech world is staring at Lancaster as NTT deals with the last phases of its decision-making process. Should the proposal come to pass, it might create conditions for even more local investments, further solidifying North Texas as a data center industry powerhouse.
