Texas Approves $10 Billion Data Center Campus Near Waco Amid Local Concerns
December 10, 2025
A major data center development, signaling the continued expansion of digital infrastructure into new U.S. markets, has cleared a key regulatory hurdle in Central Texas. The project underscores the intense demand for computing capacity driven by artificial intelligence and cloud services, pushing developers to seek sites beyond traditional hyperscale hubs.
The Lacy Lakeview City Council voted on December 9 to approve a non-binding agreement to continue negotiations with developer InfraKey Capital for a proposed data center campus. The council's decision, with only one dissenting vote, moves the massive project forward. The planned campus, to be built on 520 acres of farmland west of Elm Mott near Waco, is projected to cost up to $10 billion upon completion.
The development envisions constructing up to six data center buildings with a combined power capacity of 1 gigawatt. According to InfraKey Capital's project site, the campus is currently in the planning stage and is expected to take four to five years to build.
Despite the potential for significant tax revenue, the project has faced skepticism from some residents. Local resident Lauren Hill expressed concerns about the rapid pace of the deal, telling local media that "AI data investors are not interested in this town because they want to live here or they want their kids to go to these schools. They're interested in using this town as a resource." In contrast, Lacy Lakeview Mayor Charles Wilson highlighted the potential benefits, stating that project revenues could be used to fund crucial improvements to the city's infrastructure.
The approval marks a notable step in the growth of the Waco area's data center market, which has historically lagged behind major Texas hubs like Dallas, Austin, and San Antonio. However, the region is gaining traction. Industry players like CyrusOne are expanding a campus in nearby Whitney, while Meta and Rowan Digital Infrastructure are developing facilities in Temple, south of Waco. The InfraKey project, with its substantial scale and investment, represents a significant vote of confidence in Central Texas as a viable and growing destination for digital infrastructure.
Source: datacenterdynamics
Texas Approves $10 Billion Data Center Campus Near Waco Amid Local Concerns
