Dell Technologies will invest $25 million in its Round Rock headquarters over the next five years, despite recent job cuts and a decline in its stock price. The Round Rock City Council unanimously approved Dell’s nomination as a qualified enterprise project under the Texas Enterprise Zone Program, according to the Austin Business Journal. This designation allows Dell to receive up to $1.25 million in state sales tax refunds if it meets its investment and job retention targets.
The expansion will involve real estate and equipment upgrades at the 1 Dell Way campus, which was valued at $81.1 million for tax purposes in 2024. While the incentive program ties 500 jobs to the project, most of these positions are expected to be retained rather than newly created. Dell has committed that at least 35 percent of new or replacement hires will be filled by economically disadvantaged individuals, veterans, or residents of enterprise zones.
Dell previously employed about 13,000 people in the Round Rock area before companywide layoffs reduced its workforce by about 25,000 globally since early 2023. The company has not provided an updated headcount for its Round Rock operations.
On August 28, Dell reported record quarterly revenue of $29.8 billion—a 19 percent increase year-over-year—driven by demand for AI-related products. The company also raised its full-year revenue outlook to $107 billion. Despite this performance, shares fell more than 10 percent following the earnings announcement.
The decision to reinvest in Round Rock comes as other major tech companies reconsider their presence in Austin. Meta began subleasing space at Sixth and Guadalupe after never occupying its pre-leased floors at 400 West 6th Street. Indeed is also looking to sublease five floors totaling 184,000 square feet at the Domain.
Round Rock continues to rely on Dell as its largest employer. Chamber officials noted that this is the fifth time Dell has been nominated for enterprise zone status, and filings with state regulators indicate ongoing construction and renovation projects at the campus.
