Colorado county grants a $19 million data center tax rebate, raising questions about jobs, taxes, and long-term value

A $19 million rebate draws scrutiny

Douglas County approved an estimated $19 million tax rebate for Flexential’s Parker data center, under construction near Compark Boulevard and South Chambers Road, with completion expected in January 2027.

The decision raised questions about public revenue, employment, electricity demand, water use, infrastructure, and whether a 35-year county incentive provides enough value for residents and taxpayers over time.

The Parker project takes shape

Flexential is building a 249,000-square-foot data center on 17 acres near Compark Boulevard and South Chambers Road, expanding the company’s established network of facilities across the Denver area.

The facility will provide 22.5 megawatts of capacity and operate within Parker town limits at the Compark Business Campus after development is completed near Flexential’s existing Englewood site.

Town approval came first

Parker’s municipal process began in 2021 and included public notice, Planning Commission consideration, hearings, and Town Council approval before Douglas County officials later considered the separate tax incentive.

The project has appeared on Parker’s publicly accessible active development map since 2021, giving residents official information about the site, location, and status through town records available online.

What the rebate covers

The rebate applies only to Douglas County’s share of business personal property tax, while Flexential remains responsible for real property taxes and amounts owed to other taxing entities.

The approved terms provide a 100% credit on the county portion for 35 years, with the total estimated rebate value exceeding $19 million across the entire agreement period.

Why this tax matters

Colorado requires companies with taxable personal property worth more than $56,000 per business to file a declaration schedule, while qualifying assets below the statutory minimum receive an exemption.

For Flexential, taxable business personal property includes machinery and computers, making equipment taxation directly relevant to the county incentive approved for the Parker data center and related assets.

Commissioners explain their tax position

Douglas County Commissioners Abe Laydon and Kevin Van Winkle criticized business personal property tax. Laydon cited employer burdens, while Van Winkle called the structure unfair and repetitive during discussion.

Commissioners described an established practice of seeking to waive Douglas County’s portion of business personal property tax when companies seek such an incentive, unless another factor affects eligibility.

Fun fact: Data centers in the USA can use 10 to 50 times more energy per square foot than typical office buildings.

Jobs become a central question

Flexential later confirmed that the Parker project is expected to create 16 jobs, prompting residents to compare employment benefits with the estimated 35-year incentive value over its full term.

Parker resident Joe Lugo questioned the 35-year term and asked why Douglas County could not limit the incentive to five or 10 years before another review of the arrangement.

Little-known fact: Data centers can use up to 40% of their total energy for cooling, making temperature control a major hidden load.

Residents focus on local effects

Public commenters questioned the long-term incentive and whether residents had received enough information about employment, costs, benefits, and other effects connected to the Parker data center development itself.

Residents raised concerns about water use, noise, possible pollution, property values, and infrastructure, while Irene Bonham separately questioned energy demand, job quality, taxpayer effects, and other long-term impacts.

Data center cooling system details differ

Flexential estimates annual consumption below 600,000 gallons. Parker says equipment cooling will not use water, while Douglas County describes the facility as using a closed-loop water system.

The shared estimate keeps projected consumption below 600,000 gallons, but official descriptions differ on whether water circulates through the equipment-cooling system during routine operations at the Parker facility.

Electric demand shapes utility planning

CORE Electric Cooperative will provide the Parker data center with 22.5 megawatts of capacity, drawing power from an existing substation located directly adjacent to the Parker development site.

Flexential will pay for the electrical infrastructure required to serve the facility, including work tied to system upgrades and bringing electric lines directly to the location for service.

The county approves the rebate

Every public commenter at the meeting opposed the rebate, with speakers questioning the incentive, taxpayer support, employment benefits, and whether Flexential should receive the proposed Douglas County tax credit.

Despite those objections, the Douglas County Board of County Commissioners unanimously approved the tax rebate for Flexential’s data center, which was already under construction in Parker at the time.

Bonham calls for a pause

Irene Bonham, the Democratic nominee for Douglas County Commissioner District 1, called for a pause on new large-scale data center approvals and incentives until clearer local standards are established.

Bonham questioned public input, job quality, water, energy, infrastructure, home values, taxpayer effects, and what residents would receive in exchange for decades of reduced county property tax revenue.

Want to keep track of the latest happenings? Check out how hours of public opposition led the Oregon council to unanimously reject a proposed data center proposal.

Construction moves toward 2027

Construction remains underway, with completion expected in January 2027. That timeline keeps the project in development while county leaders, residents, and Flexential track remaining site steps and preparations.

Douglas County’s 35-year agreement rebates only its portion of Flexential’s business personal property tax, while other taxing entities still receive their share from the Parker data center project.

Want to keep up with the latest news? Check out why the Ohio data center bill would require local votes and make developers pay for water impacts.

Do you think Colorado’s $19 million data center tax rebate will deliver enough jobs and benefits to justify the long-term cost to taxpayers? Share your thoughts.

This slideshow was made with AI assistance and human editing.

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