The city of Taylor will consider annexation and zoning for the 664‑acre Taylor Technology Campus, proposed at 3301 FM 112. Developers say the site could support 500 MW (with another 500 MW possible), produce nearly $5 billion in county economic output over 20 years, and generate $1.4 billion in gross tax revenue for Taylor from 2027–2046. Residents and environmental advocates raise concerns about water and power demand, pollution and displacement; developers propose reclaimed‑water closed‑loop cooling and concessions to mitigate impacts.
Taylor Weighs Annexation Of 664‑Acre Data Center Campus As Residents Raise Water, Power And Pollution Concerns
Credit: Pexels/panumas nikhomkhai
The city of Taylor, part of the Austin metro area, is preparing to consider annexation and zoning for a proposed 664‑acre data center development known as the Taylor Technology Campus. The project site is listed at 3301 Farm to Market Road 112 and will be discussed at Thursday's Taylor City Council meeting, the Austin Business Journal reported.
Project Overview
The developers—South Dakota–based Big Watt Digital LLC and Virginia‑based PowerHouse Data Centers—say the campus could support 500 megawatts (MW) of data center load with behind‑the‑meter, on‑site power generation; an unnamed tenant could potentially add another 500 MW. Developers and a commissioned economic study estimate the project could generate nearly $5 billion in economic output for Williamson County over the next two decades.
Local Economic Projections
The developers’ report projects approximately $1.4 billion in gross tax revenue for the city of Taylor from 2027 through 2046, about 320 permanent full‑time jobs and roughly 19,350 temporary construction and related jobs. The study also cites about $28.2 million in proposed community benefit investments.
Negotiations, Design And Mitigations
In early September, the developers withdrew their original annexation request to continue negotiating local regulatory standards, including noise limits, water use, setback requirements and community benefits. City officials say the campus will be designed with a closed‑loop cooling system that uses an initial fill of 1.6 million gallons of reclaimed water so that no potable water would be used for cooling. Proposed concessions include funding for utility improvements, landscaped buffers and commitments to city standards for light, noise and air quality.
Community Concerns And Political Context
Taylor, which has a population of roughly 18,500, has already seen public pushback to other large data center proposals. Residents protested approval of a 220‑acre campus by Dallas‑based KDC in March, and expressed opposition last summer to an Austin‑based Blueprint Projects proposal for a $1 billion campus. Some residents petitioned for a citywide ban on data centers (the city rejected the petition); in July opponents filed a lawsuit seeking an election on a temporary ban or moratorium.
Critics commonly cite concerns about heavy water and power demand, noise, light and air pollution, and the potential for community displacement. Developers counter that modern designs, reclaimed water cooling and negotiated concessions will reduce impacts.
Wider Statewide Actions
The debate in Taylor reflects broader statewide tensions as data center proposals accelerate amid the AI boom. In early August, Texas Governor Greg Abbott paused new data center connections to the state grid while regulators complete an audit of power demands, water use and ownership structures. Meanwhile, Fort Worth has begun planning a data center moratorium to begin in early 2027 even as it recently approved a separate $10 billion campus.
Note: As of the latest reporting, Big Watt Digital LLC and PowerHouse Data Centers have not yet purchased the site.
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