Dell Technologies has announced a $25 million expansion at its Round Rock headquarters, despite recent reductions in its global workforce and a drop in share price. The investment will take place over the next five years at the company’s campus in Round Rock, which is the largest suburb of Austin.
The Round Rock City Council unanimously approved Dell’s nomination as a qualified enterprise project under the Texas Enterprise Zone Program, according to reporting from the Austin Business Journal. This designation makes Dell eligible for up to $1.25 million in state sales tax refunds if it meets its capital investment and job retention commitments.
Round Rock officials stated that Dell’s plans include both real estate and equipment investments across its 1 Dell Way campus, involving new construction and renovations. The office property was appraised at $81.1 million for tax purposes in 2024.
According to Dell’s application, 500 jobs are connected to the incentive program, with most focused on retention rather than new hiring. The company committed to ensuring that at least 35 percent of new or replacement positions are filled by economically disadvantaged individuals, veterans, or residents of enterprise zones. While Dell has not provided an updated headcount for Round Rock recently, it previously employed about 13,000 people there before layoffs in 2023 and 2024 reduced its workforce.
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. However, following this earnings report, shares fell more than 10 percent. Over the past two years, Dell has cut approximately 25,000 jobs globally—about 10 percent of its workforce each year.
The decision to invest further in Round Rock comes as other major technology companies reconsider their office footprints in Austin. Meta began subleasing some of its space at Sixth and Guadalupe after never occupying all pre-leased floors at 400 West 6th Street. Indeed has also sought tenants for five floors—totaling about 184,000 square feet—at the Domain (source).
Round Rock continues to rely heavily on Dell as its largest employer. Chamber officials noted that this is the fifth time Dell has been nominated for enterprise zone status and recent filings indicate several construction and renovation projects already underway at the campus.
