The Caddo Parish Commission voted 10-2 on Thursday to approve a new incentive term sheet aimed at attracting data centers, particularly large-scale operations known as “hyperscalers.” The decision follows extensive discussions lasting over seventy minutes, during which commissioners and local citizens voiced their opinions on the proposal. Key figures such as Paul Pratt from SWEPCO and Brandon Snead, Interim Director of Shreveport’s Department of Water and Sewer, were present to address inquiries.
During the meeting, Mike Busada, attorney for the Northwest Louisiana Finance Authority, clarified that the initiative does not directly pertain to a proposed data center project in west Shreveport. Instead, it aims to position Caddo Parish competitively for future economic development opportunities outside city limits. “You’re putting down the rules of the road. You’re saying ‘We’ll give you an incentive, but you’re going to do it this way,’ because we want to get the benefits,” Busada explained.
Incentives and Job Creation
The incentive structure was endorsed unanimously by the Finance Authority board on November 13, 2023, allowing the North Louisiana Economic Partnership (NLEP) to negotiate with potential data center businesses. This approach entails municipalities like Caddo Parish foregoing a portion of property tax collections in exchange for attracting significant investments.
The specifics of the tax abatement depend on the scale of the company’s investment and the number of jobs created. Notably, these jobs must offer wages at or above 150% of the statewide average, excluding benefits. Should a company fail to meet the requirements of the Payment in Lieu of Taxes (PILOT) program, it could face financial penalties or be returned to the property tax rolls.
Urgency in Attracting Hyperscalers
This initiative is seen as essential for securing “hyperscale” data center projects, which are characterized by their extensive computing power and storage capabilities. Companies such as Meta, Apple, and Amazon Web Services are notable players in this sector. NLEP CEO Justyn Dixon emphasized the need for rapid action when opportunities arise. “When they come in and they’re ready to make a commitment, we can get there very quickly,” he stated, referring to the aggressive model developed for negotiations.
Commissioner Greg Young highlighted the existing presence of data centers in the area, urging vigilance regarding environmental safeguards and resource management. “Data centers are not simply coming; they’re already here,” he noted. Meanwhile, Commissioner Ken Epperson stressed the importance of transparent communication with the community, insisting on regular meetings to inform citizens about the developments and investments planned by data center developers.
Busada assured attendees that the commission would facilitate ample opportunities for public engagement, stating, “Everyone should be able to hear what the companies plan to do.” As Caddo Parish positions itself to compete for significant economic projects, the approval of this tax incentive marks a critical step in shaping the region’s technological landscape. With data centers poised to bring substantial economic benefits, the Caddo Parish Commission is focused on establishing a framework that balances growth with community interests.
