Bryan City Council Approves Tax Abatement for RELLIS Data Center

BRYAN, Texas – After numerous delays, a bankruptcy filing, and two postponed votes, the Bryan City Council recently gave the green light to a tax abatement agreement for the data and research center being constructed on the RELLIS campus. This decision came during a special meeting, which addressed an agenda item that had been delayed from previous meetings in May and June.

The construction of the RELLIS Campus Data and Research Center began in 2021, when the city initially approved an economic development agreement for what was projected to be the largest taxable business in Brazos County. Unfortunately, the project experienced several setbacks, including those caused by Winter Storm Uri.

Despite the construction finally progressing in 2024, the project faced a significant setback in November 2025, when it filed for Chapter 11 bankruptcy after losing a major financial partner. At that time, local contractors reported they had yet to receive payment.

Eventually, a new owner stepped in to take control of the nearly finished facility and sought to restore the project’s tax incentives through an agreement with the city. The newly approved Alternative Tax Abatement Agreement is between the City of Bryan and RELLIS Campus Data and Research Center, LLC. The facility is located on 25 acres within RELLIS Reinvestment Zone No. 2, and its estimated value, including improvements, is at least $298 million.

Mayor Pro Tem James Edge introduced the motion for approval, noting that previous delays were largely due to unresolved legal issues regarding ownership transfer. He mentioned, “There were some issues related to ownership… those legal issues needed to be resolved before we could proceed. It’s essentially the same structure we had with the previous owner, with some adjustments to help the city recover costs regardless of assessed value. So I think it’s better for citizens.” Edge also mentioned that the new owner has a September deadline to begin construction and that Texas A&M University System is heavily involved.

Concerns from Residents

However, not everyone is on board with the agreement. During the meeting, two residents expressed their opposition, including Bob Atchgill, a local resident and Texas A&M graduate, who voiced concerns he felt were largely overlooked. Atchgill focused on the impacts on water and energy resources, arguing that large data centers could strain these essential services.

He said, “At the end of the day, this is a tax on the poor. Big tech companies are banking on it because they’re trying to make a lot of money by using non-fungible water.” Atchgill pointed to a water shortage warning issued a couple of years back, suggesting that Brazos County could be running low on water within a decade. He emphasized that data centers would compete for these limited resources.

Moreover, he raised issues regarding energy supply competition, stating that data centers would be drawing electricity from the same grid that serves residents’ heating and cooling needs.

In response, Edge acknowledged these objections but reaffirmed the council’s stance on the decision, arguing, “The data center is not the boogeyman that some people think it is, and this will be beneficial for the residents of Bryan.” He maintained that it wouldn’t pose the dangers some have suggested.

Discussion on Solar Customers

The members of the Bryan City Council had more on their plates than just tax cuts at their recent special meeting. They also discussed issues related to Bryan Texas Utilities (BTU) concerning customer billing and electricity prices, especially regarding residential clients utilizing solar panels.

Edge admitted that there’s still a lot of groundwork to be covered. He commented, “Ultimately, I think the decision we made was probably a little premature. I don’t think we were fully briefed on how this would impact our customers. We need to gather more information going forward to find a resolution that benefits everyone.”

Concerns raised by BTU solar customers are still under review.