The Taylor City Council has unanimously approved an agreement to annex a 664-acre data center development east of the city, ending months of heated debate and negotiations over a project that drew vocal opposition from residents concerned about noise, water use, and neighborhood impacts.

The council voted 5-0 on the proposed agreement, clearing the way for the Taylor Technology Campus, formerly known as Project Mustang, to move forward on land between FM 112 and U.S. 79.

The project is being developed by Big Watt Digital and PowerHouse Data Centers and will include data center facilities housing computer servers along with on-site power generation equipment to meet the facility's electricity needs.

Months of Negotiations Following Withdrawn Application

Progress on the project halted last September, when developers withdrew their original annexation and zoning requests amid months of discussions with residents about noise, water use, and impacts on nearby neighborhoods. Negotiations between the city and the developers continued after that withdrawal.

According to the City of Taylor, the city continued to negotiate with the developers regarding annexation to ensure the campus would be required to meet regulatory standards on noise, water use, setbacks, and community benefits. The proposed agreement went before the City Council for a vote at the meeting.

Opposition From Residents and Advocacy Group

Some residents, along with the advocacy group Halt Taylor Data Centers, opposed the project. They argued the campus could lead to overindustrialization and place additional demands on local water supplies and infrastructure.

A packed and emotional crowd filled Taylor City Hall on Thursday night after city leaders announced that a citizen-led petition aimed at restricting future data center development cannot move forward through the initiative process under Texas law. That announcement came the same evening as the council's vote on the annexation agreement.

Regulatory Requirements Under the Agreement

City officials say the new agreement includes strict requirements governing water use, noise, lighting and setbacks, and that annexation brings the property within Taylor's city limits, giving the city authority to enforce the new requirements and oversee the development.

Under the agreement, the site must be designed and constructed with a closed-loop cooling system utilizing reclaimed water, with an initial fill volume of 1.575 million gallons for the entire site.

Potable city water will be used only for restrooms, break rooms, and similar purposes, and no potable water will be authorized for filling the HVAC system or evaporative cooling purposes except in limited circumstances outlined in the agreement, such as a temporary emergency with written approval by the city manager.

The developers must commit to wastewater infrastructure improvements to improve effluent quality, reduce discharges to Mustang Creek and preserve potable water for residents by serving future industrial demand with reclaimed water.

As part of those investments, the developers will withdraw their TCEQ wastewater discharge permit application. Wastewater must be designed and permitted in accordance with Chapter 29 of the city's Code of Ordinances, including industrial pretreatment requirements, and the developers will pay for all utility lines connecting their site to city utility systems.

On noise, an acoustic study will be conducted at the property lines to establish a pre-development noise level, and noise generated from the development may not exceed the greater of either 65 decibels (dBA) or the pre-development level. Without the agreement, the site would have been subject only to the state limit of 85 dBA with no additional county regulations. Air quality will be enforced by the Texas Commission on Environmental Quality in either case.

Lighting must adhere to the city's Dark Skies requirements, which would not have applied absent annexation. Stormwater systems must meet the city's Engineering Manual, and the developer must make a good-faith effort to reduce the pre-development amount of stormwater flowing from the property onto neighboring properties.

The agreement also imposes detailed setback and buffering requirements. Buildings must be set back at least 300 feet from the north, east, and west property lines. Along the south property line, data centers, power generation facilities, and battery storage must be at least 700 feet from the property line, while accessory structures must be at least 500 feet away.

A permanent landscaped buffer of at least 400 feet must be provided along the south property line near FM 112, including landscaped areas and earthen berms at least 6 feet high for additional screening.

The project will generate its own power on site, with the ability to sell power back to the grid when production exceeds the facility's needs.

Community Benefits and Projected Tax Revenue

The plan includes USD 28.2 million in commitments to benefit city programs, Taylor Independent School District, and local nonprofits. City officials estimate the project could generate USD 1.38 billion in gross tax revenue for the city over the next 20 years.

Developer Statement

Following the council's vote, Big Watt Digital and PowerHouse Data Centers released a joint statement welcoming the unanimous vote to advance the Taylor Technology Campus.

The statement said the decision reflects the companies' commitment to developing a responsibly planned data center campus that aligns with Governor Abbott's data center standards, and that responsible development means being a good neighbor and an engaged community partner.

The companies said the campus is designed to expand the city's tax base, create workforce opportunities and support quality-of-life improvements for local residents, and noted the project includes USD 28.2 million in community commitments, including ongoing support for local nonprofits, schools and community initiatives.

The developers thanked the City of Taylor and its elected leaders for their consideration of the project, said they look forward to continuing to work collaboratively with the community as the campus moves forward, and expressed excitement about the opportunity to call Taylor, Texas, home.

The council's unanimous vote ends a prolonged period of uncertainty and clears the way for the Taylor Technology Campus to move forward under new city oversight.

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