The City Council unanimously approved a development agreement for the Taylor Technology Campus, the former Project Mustang power plant and data center opposed by many who packed City Hall Oct. 8.
Supporters, however, noted the project could pump more than a billion dollars into the tax base and provide millions in revenue for local school districts.
Emotions ran high among the full-capacity crowd in council Chambers and the overflow viewing room at the session, where critics asked the council to pause or deny a proposed development agreement with Big Watt Digital and PowerHouse Data Centers. The companies will be developing a power plant and data center called Taylor Technology Campus, formerly known as Project Mustang.
The site at 3301 FM112 covers 664 acres of former farmland and is outside the city limits, but is expected to be annexed.
After two hours of public comment, with most opposing the project, the council voted in unison to approve a development agreement which city staff and the developers had negotiated.
“We recognize a project of this size generates large questions for its host community and those questions deserve deep and thorough debate and analysis, and we are here tonight to try to provide clear and honest answers to the questions that come out of them,” said John Stokes, an executive vice president at Big Watt Digital.
He added, “The citizens of Taylor are going to be affected by this project. It seems to us regardless of whether people are our supporters or not our supporters, they deserve the benefits that flow from the project that is in their community.”
More than 20 people spoke out against the project, airing concerns centered mostly around what they said could be health impacts on the community.
Some cited statistics regarding lax oversight of hazardous emissions by the Texas Commission on Environmental Quality and issues surrounding noise, water and risks of long-term exposure to power plants.
Critics and proponents
Many were also upset about how the decision came about.
The OK comes less than a week before a scheduled Oct. 13 Planning and Zoning Commission meeting that will address proposed digital infrastructure guidelines to be added to the land development code.
Thursday’s vote by the council preempts the P&Z meeting and locks in the project with the development guidelines now in place.
“What’s happening with this massive project feels like a threat. We’re told they’re going to do it anyway, so what are the true costs? This type of project should not be rushed,” said Taylor business owner Alyse Mervosh. “Trust has been broken between this city government and the people of Taylor.”
Not every speaker was against the project.
Greater Taylor Chamber of Commerce President Tia Stone commended council members for negotiating a development agreement that will bring significant revenue to the city and to the Taylor Independent School District.
“A long time ago, this community chose low tax rates over any other consideration, and we're living with those consequences in our roads and infrastructure today,” Stone said. “What happened during all of that time was economic prosperity left Taylor. It left because city leaders were unwilling to accept the economic opportunities that they were given.”
The development agreement council approved includes guidelines governing water, wastewater, noise, setbacks and other platting and design requirements. The developers will voluntarily request annexation into the city, allowing Taylor to collect property tax and sales-and-use tax.
Tax benefits
A third-party consultant hired by the developers said the project could generate $1.38 billion in projected city tax revenues between 2027 to 2046, the time covered by the 20-year development agreement.
The project is not receiving any tax incentives or deferrals from the city or the county.
“The property tax revenue for the city of Taylor for fiscal year 2026 was about $21 million. This project alone is going to provide an average of about $69 million of gross tax revenue. So it’s over three times the total property tax revenue for this year,” Stokes said.
The developers have committed $28 million in community benefits to the city and to Taylor ISD. The project is within the Thrall Independent School District, so that system will also receive funding.
Opponents of the project say their next step may be heading to TCEQ.
“This isn’t the end of this fight,” Justin Irving said. “There is a permitting process (with TCEQ) and there is an engagement process. There’s also a really big decision in that engagement process about whether this will be considered a major project.”
TCEQ identifies major or non-major projects based on the project’s “potential to emit” air pollutants. Projects classified as major must obtain a federal operating permit with more highly regulated emissions, monitoring and compliance rules.
For more information, visit taylortx.gov/1416/Taylor-Technology-Campus.
