Lowe’s to build new data center in San Antonio

- Investment expected to strengthen local information technology industry -

City of San Antonio and Bexar County officials announced today that Lowe’s Companies, Inc., pending all approvals, will locate a new data center in San Antonio. The facility will represent a $60 million upfront investment that may grow in the long-term to upwards of $200 million over 20 years. The facility will create 20-25 high-tech jobs with an annual payroll of approximately $1 million, strengthening the area’s information technology industry.

An item to designate the Lowe’s Reinvestment Zone to create the data center is scheduled to go before City Council on Thursday. The Zone would consist of 10 acres in the Westover Hills area. Lowe’s has requested a 10-year, 100-percent tax abatement on personal and real property improvements associated with the center.
"San Antonio has some of the lowest electrical rates in the country, and that's why we're a natural home for data centers like this," said Mayor Phil Hardberger. "A project of this magnitude will be the first of its kind, and is a significant addition to our rapidly growing information technology industry."

The 70,000-square foot facility will be built to centralize data transactions and storage for the company’s increased business volume. Additionally, it is expected to create 20-30 full-time contract jobs.

"This is an excellent addition to our technology sector," said County Judge Nelson Wolff. "Lowe's recognized the attractiveness of our climate, electrical rates and workforce."

Lowe’s is the world’s second largest home improvement chain. It is a publicly-traded FORTUNE® 500 company with more than $43 million in annual sales and over 185,000 employees nationwide. The company’s 1,250 superstores in 49 states sell about 40,000 products including appliances, furnishings, building materials and lawn and garden products.

“This is welcome news for San Antonio as we aggressively pursue a high technology base and the coveted data centers. District 6 is currently the fastest-growing district in the city and Westover Hills continues to bring tremendous opportunities to San Antonio,” says District 6 City Councilwoman Delicia Herrera.

The City expects to receive up to $2.3 million in new sales tax and CPS Energy revenues over the 10-year tax phase-in term. Overall, net revenues to the City over the 20-year period are expected to be almost $5 million.
“To have a national company such as Lowe’s bring a crucial aspect of their business to San Antonio and Bexar County says a lot about our economic partners and our governments working well together,” says County Commissioner Chico Rodriguez. “There are many positive aspects to this deal and I believe our entire community will benefit.”

The project supports the City’s Strategic Plan for Enhanced Economic Development by encouraging the attraction of new information technology businesses to the community.

“This is a big vote of confidence for San Antonio as a data center location,” said John Montford, chairman of the San Antonio Economic Development Foundation. “The Lowe’s name and reputation ensure that others in this growth sector will look at us. It also helps to have CPS Energy providing a huge advantage for San Antonio for attracting power-intensive operations like this.”