News Summary
Tract, a data center developer, has acquired a 1,515-acre site in Lockhart, Texas, aimed at establishing a cutting-edge data center campus. With a focus on cloud operations and AI, it’s projected to support over 2 gigawatts of power. This development is expected to create thousands of jobs and significantly enhance the local economy. As Texas becomes a hub for data centers, the project aligns with the growing demand for technological advancements while addressing potential challenges in electrical grid capacity.
Texas Data Center Development Gets Boost with New Acquisition
Tract, a data center developer based in Denver, Colorado, has announced the acquisition of a 1,515-acre parcel of land in Caldwell County, Texas, on May 7. This site, located northwest of Lockhart and just under six miles from popular barbecue joints, is poised to become a significant data center campus supporting over 2 gigawatts (GW) of power, with operations expected to commence in 2028.
The planned facility will include provisions for supplemental on-site power generation. Tract is set to collaborate with Blue Bonnet Electric Cooperative to establish an initial 360 megawatt (MW) grid connection aimed at ensuring robust energy availability. The developer envisions utilizing the campus primarily for cloud-based operations, AI training applications, and inferencing.
Focus on Job Creation and Infrastructure
Grant van Rooyen, CEO and Managing Partner of Tract, noted the favorable business environment in Texas, alongside the availability of a skilled workforce. This development is anticipated to generate thousands of construction and operations jobs, further bolstering the local economy. Governor Greg Abbott has expressed his support for Tract’s plans, indicating the positive impact of the data center on job creation and improvements to the state’s power grid and technology infrastructure.
Tract has an extensive portfolio, with multiple active data centers and projects across various states, including Arizona, Nevada, Utah, Virginia, Illinois, Iowa, Minnesota, and North Carolina. The move into Texas aligns with the growing trend of data center development in the state, which has seen an escalating demand for computing power and AI capabilities.
Data Center Boom in Texas
The Austin-San Antonio corridor has experienced a significant increase in data center construction, with development levels more than quadrupling in the first half of 2024 compared to the previous year. A substantial number of new facilities are pre-leased, indicating strong market demand. Analysts project that the emerging data center market in Austin will expand by approximately 7% annually through 2031, reflecting increasing energy and cooling requirements driven by advancements in AI and data technologies.
Despite the advantages of the data center boom, concerns have arisen regarding the potential impact on Texas’s electrical grid. Similar to crypto mining operations, the influx of data centers raises questions about grid reliability. Recent statements from Lieutenant Governor Dan Patrick have highlighted the state’s ambitions to establish Texas as a leader in data centers, AI, and cryptocurrency while ensuring these industries do not impose excessive burdens on the electrical infrastructure.
Future Energy Needs and Challenges
The Electric Reliability Council of Texas (ERCOT) has projected that the overall capacity of the electrical grid will require substantial growth to meet the heightened demands stemming from new data centers. This projection underscores the ongoing challenges associated with integrating rapidly growing energy-intensive operations while maintaining grid stability.
Tract, founded by former Cologix CEO Grant van Rooyen, is focused on developing master-planned data center parks that offer space ready for further development by other companies. The acquisition of the Caldwell County site marks a key investment in meeting the expected rise in demand for data processing capabilities and supporting the continuing evolution of technology in Texas.
As Texas positions itself as a hub for data center operations, ongoing dialogue among policymakers, industry leaders, and stakeholders will be crucial in navigating the complexities associated with energy demands and infrastructure development.
Deeper Dive: News & Info About This Topic
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