Data center 'megasite' is coming to Lockhart as similar facilities strain Texas' water, energy supply

Lina Fisher | Source: KUT | Posted 05/22/2025

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Only a few weeks after Austin City Council passed a resolution requiring various regulations on artificial intelligence operations, a new 2-gigawatt data center is coming to Lockhart. Tract, a Colorado-based developer, has secured 1,500 acres for a “megasite” in Caldwell County, only about six miles away from famous barbecue joints Smitty’s Market, Kreuz Market and Black’s.

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A new 2-gigawatt data center, developed by Tract, is set to be established in Lockhart, Texas, on a 1,500-acre site. This initiative has garnered support from Governor Greg Abbott, who emphasizes its potential to create jobs and enhance the state's power grid. However, the growing number of data centers poses significant challenges to Texas' energy infrastructure, as they require substantial energy and water resources, contributing to nearly 2% of global energy demand. Projections indicate that energy demand in Texas could nearly double by 2030, largely driven by data centers and cryptomining operations.

In response to the environmental concerns associated with these facilities, the Austin City Council has enacted regulations requiring audits and environmental studies to assess the impact on utility resources and rates. Tract has committed to securing energy from Bluebonnet Electric Cooperative and investing in local infrastructure improvements. Additionally, the Texas Senate is considering legislation to impose stricter requirements on data centers to mitigate their impact on the energy grid, ensuring that residential customers are protected from potential costs associated with increased energy demand.

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Source Link: https://www.kut.org/energy-environment/2025-05-16/data-center-megasite-is-coming-to-lockhart-as-similar-facilities-strain-texas-water-energy-supply

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Data center 'megasite' is coming to Lockhart as similar facilities strain Texas' water, energy supply

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