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Dell Technologies plans $25M expansion of Round Rock headquarters

09/02/2025

The five-year project includes renovation, expansion and new construction at the Texas tech giant’s headquarters campus.

Texas-based tech giant Dell Technologies Inc. is planning a five-year, $25 million expansion of its Round Rock headquarters.

It includes a combination of new construction, renovation and expansion of existing space, and the company is seeking state tax breaks under the Texas Enterprise Zone Program for the work.

The plans were made public by Round Rock Chamber of Commerce officials in a pitch to City Council members to endorse the enterprise zone designation.

The program, which refunds some state sales and use tax, is intended to encourage private investment and job creation in “economically distressed” areas of the state. Cities can nominate up to six companies every two years to receive a refund on the 6.5% state use and sales tax so long as the companies meet minimum investment and job numbers.

Round Rock City Council voted unanimously Thursday to nominate Dell for the program.

With a $25 million expansion, Dell would be eligible to receive a maximum $1.25 million, or $2,500 per job. Zach Scott, the chamber’s director of industry and workforce development, said Dell has committed to hiring 35% economically disadvantaged persons, veterans or enterprise zone residents as new or replacement personnel over the next five years.

Round Rock has nominated Dell for the program five other times. Scott said all those projects had reached their time limit for capital investment and benefit. He said neither the city nor chamber is actively nominating or talking with any other companies for the program.

Word of the five-year expansion program comes as Dell’s business is booming. Last week, it reported record revenue in its most recent quarter, largely thanks to its artificial intelligence investments. The company’s profit soared 32% to $1.16 billion as revenue jumped 19% to $29.8 billion in the three months through July. Dell’s Infrastructure Solutions Group — the business unit focused on IT infrastructure like servers, storage, networking and artificial intelligence — had $16.8 billion in revenue, up 44% from a year ago.

The highs in profit and revenue are coming as Dell has continued to shrink its employee base. The company’s global workforce decreased by 10% from March 2024 to March 2025, though it hasn’t revealed how that has affected employment at its Round Rock campus. Earlier this year, the company reinstated a return-to-work policy requiring all employees who reside near an office or headquarters to be at their desk five times a week.

Dell has been filing documents with the Texas Department of Licensing and Regulation over the past few weeks related to construction work at in Round Rock.

The projects, five of which began since July 17, total about $6.95 million worth of renovations and upgrades in at least four buildings.

Dell said previously it was beginning a $1.7 million renovation project this week. It includes altering conference rooms into a larger innovation showroom in building three.

This month, the company will also begin work on $1.56 million worth of updates to building one and $1 million in renovations to the company’s comms lab. The company has already started work on $1 million in updates at its thermal lab, which includes mechanical, electrical and plumbing upgrades to support new server racks and security fencing. Those projects will be finished by the end of the year, according to filings.

The company will also start $1 million worth of updates to building two next month, with the project to be completed by the end of January 2026.

One of the largest companies in Texas, Dell relocated its headquarters to Round Rock in 1994, about a decade after Michael Dell founded the company while attending the University of Texas at Austin.

In a January filing, it reported having about 108,000 employees nationwide. According to the Round Rock Chamber of Commerce, about 13,000 of those are based at its Round Rock headquarters.

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