FedEx Freight is planning a more than $10 million expansion of its Sherman operations.

The board of directors of the Sherman Economic Development Corp. announced the expansion as it approved the sale of 22.5 acres of land in the city’s Progress Park IV to the company. SEDCO President John Plotnik said the land FedEx is planning to purchase is under contract for $45,000 an acre, meaning the entire tract will cost around $1,012,500.

SEDCO officials said FedEx is planning to invest between $10 million and $11 million on a new facility in Progress Park IV and will add 45 new employees.

“It is just more evidence that Sherman is growing,” Plotnik said, adding it is great to have a nationally recognized company like FedEx pick Sherman as the site for its continued growth.

Plotnik explained that since FedEx is a service company, it is not eligible for economic incentives and the company will be allowed to keep the salaries it plans to pay the new employees confidential. The company currently operates a FedEx Ground location at 3221 Northgate Drive adjacent to Progress Park I on the north side of FM 1417. The land being purchased in Progress Park IV will be south of FM 1417. The company also has a FedEx Freight location at 2749 Fallon Drive in Sherman’s Midway Industrial Complex on the north side of the city and a FedEx Office Print & Ship Center on U.S. Highway 75.

The property sale comes a month after SEDCO’s board placed 64 acres of land under contract for $450,000. The 64 acres, which is just west of the Panda Power plant, will be added to the Progress Park Industrial area. The 64 acres of property would also be accessible by the city’s Progress Drive, which currently dead-ends near the northeast corner of the land.

Thea Development LLC currently has about 90 percent of Sherman’s Progress Park I under contract with plans to use it to develop the infrastructure for five data centers in the area. The company is paying around $1.84 million for the 48 acres of land, as each acre was appraised at about $40,000. Cassini Gateway I, as the data center development will be known, will be able to accommodate more than 1 million square feet of independently-owned data centers.

When the deal was announced, Thea Development CEO Margie Guido said the data centers her company is targeting contain computer servers that hold information for the internet and provide cloud services.

Plotnik said several of the other available tracts of land in the industrial park have been earmarked for projects still being discussed.

“Eventually we’re going to run out of land, and so we want to continue to expand the park, which makes this a very important piece to it right now,” Plotnik said last month of the planned 64-acre purchase.

As most of the other available land adjacent to Progress Park has deep creeks and wouldn’t be suitable for industrial development, Plotnik said future expansion may go outside the current confines of the industrial area.

Herald Democrat Managing Editor William C. Wadsack contributed to this article.