Support for the planned Project Mustang data center just outside Taylor is on hold after the Planning & Zoning Commission asked developers to return in 90 days to give the city more time to develop guidelines.
A crowd packed the meeting Tuesday, many of them opposed to having a potential fourth data center in or near Taylor.
Even though it’s in the county, the 665-acre Project Mustang came before the P&Z commission because developers are requesting annexation and want to work with Taylor officials.
The commission, however, voted 6-2 to table a vote on a Project Mustang zoning amendment, potentially giving the city 90 days to complete its digital infrastructure guidelines before moving forward.
The project requires an approved Employment Center plan to establish the site’s development standards prior to development, if the facility is annexed into Taylor.
The City Council ultimately approves or denies resolutions forwarded by the P&Z commission.
“We’re in the middle of the process of defining digital infrastructure or redefining employment centers and it feels like this is being rammed through before we have that,” said Commissioner Amy Everhart.
She added, “We’re in a situation where the governor, the state Legislature and our city have said we’re going to work on new regulations around data centers, and I don’t feel comfortable recommending approval for something when we know further regulation could be coming.”
Gov. Gregg Abbott has called for a statewide moratorium on data centers until the Public Utility Commission and the Electric Reliability Council of Texas, which oversees the power grid, can conduct audits of future projects to ensure enough water and electricity are available.
Abbott also said taxpayers shouldn’t foot the bill if cities give data centers financial incentives or tax abatements.
Why the delay?
By delaying the vote by 90 days, the P&Z Commission is giving the city more time to flesh out its nascent digital infrastructure regulations.
The city has a Comprehensive Plan & Development Code Advisory Committee currently exploring changes needed to Taylor’s land use and development regulations, including the employment center zone designation and infrastructure for specialized technology companies, such as data centers.
In Taylor, the Project Mustang data center and adjacent power plant are a joint project of Powerhouse and Big Watt Digital. The site is on former farmland stretching between U.S. 79 and FM 112 in the city’s extraterritorial jurisdiction.
A spokesman for the project said developers want to work with Taylor, but plan to move ahead no matter what.
“We hope the city brings us in and includes us. But we do have to mention that if that doesn’t happen, if we’re not included in the city, we do intend to pursue the project anyway,” said John Stokes, part of the Big Watt team. “But we hope to be part of the city, be part of that neighborly view.”
Since the project is in the ETJ, it does not need to follow city development codes.
Developers are not asking for any financial incentives from Taylor. They hope to be online in 2028.
If the data-center site is annexed, the city can collect property and sales tax revenue from it representing millions of dollars annually.
The project will include data center buildings, a mechanical yard, three substations, a gas infrastructure power plant and its auxiliary buildings, three detention ponds and additional utility infrastructure.
Up to 89% of the 665 acres will be covered with buildings or parking surfaces.
The buildings will be set back 300 to 400 feet from the property's edges. Buildings will be up to 85-feet high, and gas stacks will be up to 125-feet tall behind an 8-foot-tall fence.
Concerns
Taylor residents and neighboring property owners who showed up at the P&Z meeting aired concerns about noise, emissions, light, health and quality-of-life issues.
Commission members took those questions into account and asked the applicant for clarification.
One point of contention is the large gas substation that will power the data center. Stokes said the on-site power generation follows Abbott’s new requirements for data centers to be self-powered.
Looking ahead, the city has planned a digital infrastructure community meeting from 5:30 to 8 p.m., Aug. 25 at the Taylor Independent School District Event Center, 3101 Main St.
The come-and-go-style meeting will have city representatives and consultants on hand to share information and gather feedback from the public.
Supervised child watch will be available.
