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The City Council approved an 85% tax abatement for three years for Peregrine Energy's Project Zeppelin, allowing the City to collect $351,000 in taxes while Peregrine receives a $2.4 million tax break. Under Executive Director Gaddy, the Development Corporation has focused on facilitating data center site development linked to renewable energy, though no proposals have been presented to the City Council.

Texas is experiencing a surge in data center development due to low land and energy costs, raising concerns about meeting future demand. The City Council is expected to establish parameters for services needed by developers like Skybox, which may require access to city water and emergency services. Future subsidies for Skybox remain unclear, as the previous City Manager, Michael Dane, did not outline plans in his retirement letter.