Dell Technologies has announced a $25 million expansion at its headquarters in Round Rock, Texas, despite recent reductions to its global workforce and a decline in stock price. The company plans to invest the funds over five years at its campus located at 1 Dell Way. This initiative follows the Round Rock City Council’s unanimous approval of Dell as a qualified enterprise project under the Texas Enterprise Zone Program, according to reporting by the Austin Business Journal.
With this designation, Dell is eligible for up to $1.25 million in state sales tax refunds if it meets specific capital investment and job retention targets. The expansion will involve real estate and equipment upgrades, including new construction and renovations across the nearly 900,000-square-foot office property, which was appraised at $81.1 million for tax purposes in 2024.
According to Dell’s application tied to the incentive program, about 500 jobs are associated with this project; most of these roles will be retained rather than newly created positions. The company also committed that at least 35 percent of new or replacement hires would be filled by economically disadvantaged individuals, veterans, or residents of enterprise zones. While current headcount figures have not been updated recently, Dell previously employed around 13,000 people in Round Rock before implementing layoffs during 2023 and 2024.
The timing of this investment comes as other technology companies reconsider their presence in Austin’s office market. For example, Meta has started subleasing some of its space at Sixth and Guadalupe after never occupying it and found a subtenant for one floor. Indeed has also sought to sublease five floors—totaling 184,000 square feet—at the Domain area.
On August 28th, Dell reported record quarterly revenue of $29.8 billion—a year-over-year increase of 19 percent attributed largely to demand for AI-related products—and raised its full-year revenue outlook to $107 billion. Despite these results, investors reacted negatively: shares fell more than 10 percent following the earnings announcement. Over the past two years, Dell has reduced its global workforce by approximately 25,000 jobs.
Chamber officials noted that Dell remains Round Rock’s largest employer and has previously received enterprise zone status five times before. Recent filings indicate several construction and renovation projects are already underway on campus.
