Officials respond to data center development

By Anthony Collins

LPR Editor

   As large-scale data center projects continue to draw attention in Caldwell County, County Judge Hoppy Haden is addressing concerns about infrastructure, regulation, and the potential impact on county residents.

   One of the primary questions surrounding the developments is whether additional power infrastructure will be required to meet demand. According to Haden, the responsibility for expanding electrical capacity does not fall on taxpayers.

   “The users have to pay for substations and transmission,” Haden said. “Peaker plants put power on the grid during peak demand, and that power goes to all users, not just data centers.”

   When it comes to regulation, Haden emphasized the limited authority counties have compared to cities. While some residents have questioned whether the county can impose stricter controls or deny incentives, he explained that options are narrow.

   “The county is under no obligation to do tax incentives,” he said. “We have very little regulatory authority regarding zoning, and we only control drainage by statute.”

   However, tax incentives can serve as a tool for oversight. Haden noted they allow the county to manage certain aspects of development, including water usage.

   “Incentives help control the tax rate when large projects hit the tax rolls,” he said. “They also allow us to limit how much water a data center can consume. We can require closed-loop cooling systems, which drastically reduce water usage and allow us to quantify it.”

   Without such agreements, the county has no authority over utilities or land use in unincorporated areas.

   “The county has zero control over water and power providers, and we cannot regulate what types of industry locate outside city limits without these incentives,” Haden said.

   Concerns about infrastructure strain, particularly water and electricity, are also being raised by residents. Haden directed those questions to utility providers. “The county does not supply or regulate water or power sales and infrastructure,” he said. As for potential impacts on residents’ utility bills, Haden pointed to recent state legislation. “High power users now have to pay for the infrastructure costs, and those costs are not passed on to consumers thanks to Senate Bill 8,” he said. “With closed-loop systems, water usage is minimal and mostly limited to normal facility needs like restrooms and breakrooms.”

   Environmental concerns, particularly regarding water discharge into local waterways such as Plum Creek and Clear Fork Creek, are also part of the discussion. Haden said any discharge would be tightly controlled.

   “They will only discharge domestic sewage if they have a treatment plant,” he said. “Through development agreements, we require the highest treatment standards allowed by the Texas Commission on Environmental Quality. Stormwater must have 80% of total suspended solids removed before it leaves the site.”

   Permitting for such projects largely falls outside county jurisdiction.

   “The only permits the county issues are related to drainage and site engineering, not vertical construction,” Haden said, adding he was not aware of the status of any state-level environmental permits.

   In terms of economic impact, the projects are expected to bring relatively few permanent jobs.

   “Average pay is around $120,000, with approximately 10 employees per building after construction,” Haden said. “We haven’t seen construction timelines yet.”

   As discussions continue, Haden reiterated that many of the broader concerns, particularly those involving utilities and large-scale infrastructure, remain outside the county’s control, leaving key decisions in the hands of state regulators and private providers.