Texas Attorney General Ken Paxton launched a probe on Sept. 17 into a planned AI data center near Austin after records showed the land was placed in trust for future parkland in 1999. The parcel went through several transfers — including to the City of Taylor in 2003 and TEDC in 2009 — before a Delaware firm bought it in April 2025 for $10 million. Paxton is investigating whether the 1999 deed restriction was properly released and said he will seek court action if the restriction has been disregarded. The inquiry coincides with a statewide crackdown on data centers focused on water use and regulatory compliance.
Texas Attorney General Probes Austin-Area Data Center Over Land Once Set Aside For Park
DALLAS, TEXAS - SEPTEMBER 09: (L-R) Texas Lt. Gov. Dan Patrick sits with Texas Republican Senate candidate, Texas Attorney General Ken Paxton on the first day of the 2026 Republican National Convention at the American Airlines Center on September 09, 2026 in Dallas, Texas. U.S. President Donald Trump will headline the Republican National Committee's first-ever midterm convention as he aims to highlight his administration’s achievements and rally support for GOP candidates just two months before the upcoming elections being held on November 3.
Texas has opened an investigation into a proposed AI data center near Austin after records indicated the site was placed in trust as future parkland about 25 years ago. The probe, announced Sept. 17 by Attorney General Ken Paxton, focuses on whether a 1999 deed restriction that designated the parcel for park use was properly modified or released before the property was sold for development.
Sequence of Transfers Under Review
According to Paxton's office, the Bland family conveyed the parcel in 1999 to the Texas Parks and Recreation Foundation "to be held in trust for future use as parkland" by Williamson County for $10. The property later changed hands multiple times, including a transfer to the City of Taylor in 2003 for $10 and a 2009 conveyance to the Taylor Economic Development Corporation (TEDC).
In April 2025, TEDC sold the tract to NCP Travis TPP Project LLC—a Delaware company linked to the proposed Blueprint Projects Data Centers—for $10 million. Paxton said his office is examining whether the 1999 trust and deed restriction were properly modified, released or terminated in accordance with any granting instrument or applicable law.
"I will not allow any person or entity to disregard the rule of law or obligations owed to the public," Paxton said. "If the Taylor data center development is unlawful, I will do everything in my power to stop it and hold those who have violated the law accountable."
Broader Context: Data Centers And State Oversight
The investigation comes amid a statewide push to tighten oversight of data centers, particularly over concerns about water use and the fiscal impact of development. Gov. Greg Abbott instructed state water officials on Sept. 14 to ensure data centers comply with Texas' water-use reporting requirements and to pursue legal consequences for violations. On June 10, Abbott also directed the Public Utility Commission and ERCOT to prevent data center construction and expansion from shifting financial or resource burdens onto Texans.
New regulations took effect in July. After lawmakers identified gaps in the data collected, Abbott paused construction of new data centers on Aug. 3 while the state conducts a full audit of proposed facilities seeking to connect to the grid. Since the audit and regulatory push, more than 40 companies — including Amazon, Google, OpenAI and Anthropic — have publicly pledged to comply with Texas' updated standards.
Next Steps
Paxton said his office will seek court intervention if the investigation finds that the 1999 restriction has been ignored or improperly released. The attorney general's inquiry will review the chain of title and any documents that could have modified or removed the parkland restriction.
Reporting: Mateo Rosiles, Texas Connect reporter for USA TODAY and regional Texas papers. To share tips: [email protected].
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