Plans for a third data center to debut in the Taylor area are already causing sparks.
Information released Monday by the city said the center, referred to as Project Mustang, will be built on a 685-acre parcel between FM 112 and U.S. 79.
The site is in Taylor’s extraterritorial jurisdiction, but a development agreement has been negotiated that calls for annexing the property into city limits.
“This agreement would require the project to far exceed county and state requirements to address noise, setbacks/buffer, air quality, light pollution, stormwater drainage and water use,” according to the city’s website.
City officials said Project Mustang is expected to provide millions of dollars in grants and scholarships.
Not everyone is buying the rosy assessment.
While data centers are needed for artificial intelligence, banking, communications, military support and often lower property taxes, they have drawn fire nationally for health, safety and environmental concerns.
Local opposition
Locally, a grass-roots organization has been fighting to get tougher zoning regulations for data centers that are developing in Taylor.
“We are disheartened by the continued disregard for the clearly communicated will of the people,” said Carrie D’Anna of the Halt Taylor Data Center Coalition. “Without an adequate digital infrastructure zoning district, annexation is acquiring responsibility and burden on behalf of the people of Taylor, not control.”
The coalition recently filed a legal action with the 3rd Court of Appeals in Austin to force the Taylor City Council to put data-center zoning to a public vote Nov. 3. That followed a petition with 1,400 signatures submitted to city leaders, but council members said state law prohibits zoning regulations being decided by popular ballot.
Halt initially formed to put a pause on the Blueprint Projects Data Center proposed for an 87-acre tract on Taylor’s south side. Neighbors contend the land was meant for a park.
D’Anna expressed frustration with the latest development.
“The failure of the city to take actions that are in their authority show that they are more concerned about offending industry than representing and advocating for the people,” she said.
The other Taylor data center on the books is Project Comal.
Meanwhile, a statement on the city’s website indicates what Taylor can and cannot control: “The city has no ability to prevent or regulate development outside of our city limits. Under state law, the developers have a right to build Project Mustang in the unincorporated county, which has no zoning powers and minimal development regulations.”
What is Project Mustang?
Project Mustang is a cooperative venture between two developers, Powerhouse and Big Watt, city officials said.
Daniel Seguin, executive director of community services, said neither the city nor the Taylor Economic Development Corp. have provided any financial incentives to the developers. City leaders have been discussing the data center in council executive sessions since January.
Project Mustang will also be complying with new regulations being put into effect by Gov. Greg Abbott to protect the state’s power grid and prevent taxpayers from subsidizing data centers through electric infrastructure upgrades.
In addition, Abbott on Monday directed state agencies to start conducting audits of data center projects before the facilities can connect to the Texas power grid.
He ordered the Public Utility Commission of Texas and the Electric Reliability Council of Texas “to conduct a comprehensive verification and audit of all data centers advancing through ERCOT’s interconnection process. The PUCT and ERCOT must complete this audit before any data center project moves forward,” according to a release.
The Governor’s Office noted that failure to comply with the requirements set by the PUCT and ERCOT means the data center will be denied connection to the Texas grid.
Meanwhile, the Project Mustang site will host a power plant run by Big Watt in addition to the data center developed by Powerhouse.
“They will generate all of their own power on-site and eventually they’d like to generate enough to sell back to the grid and add to the local supply,” Seguin said. He added the site has direct access to a gas pipeline that will give them the capability to produce electricity.
The city says the millions of dollars in community benefits they have negotiated so far include support for the Taylor City Animal Shelter. Seguin said the numbers are still being finalized, but the city expects a large impact from quality-of-life investments made by the developers.
The next opportunity for public comment will be during the Planning and Zoning Commission meeting Aug. 18 and the City Council meeting Sept. 10.
More information can be found on the city’s website, taylortx.gov/1416/Project-Mustang---PowerHouse-Big-Watt.
A 685-acre site between FM 112 and U.S. 79 is the site for the city’s third data center, currently known as Project Mustang. Courtesy of Taylor
