Major Data Center Campus Proposed for Caldwell County, Fueling Central Texas AI Boom
January 1, 2026
Central Texas is solidifying its status as a critical hub for digital infrastructure, with a new 320-acre data center campus proposed for Caldwell County. The project underscores the region's escalating importance in supporting the massive computing demands of artificial intelligence and cloud services. The plan was presented last week to Caldwell County commissioners by Jordan Schaefer, a civil engineer with Kimley-Horn and Associates. The development, located in Martindale approximately 40 miles south of Austin, is slated to feature two buildings, each spanning 1 million square feet. A key aspect of the proposal is its planned minimal use of municipal water for cooling, a growing concern in the region. Schaefer stated that water would be reserved for administrative spaces and restrooms, with the developer intending to construct a private sewer system for wastewater. To address a projected seven-year wait for a permanent grid power solution, the developers plan to utilize "clean-fuel" natural gas technology from TurboCell. While the developers were not formally named, the project has been linked to Edged Energy, a subsidiary of Connecticut-based Endeavor known for promoting water-efficient data centers. Bill Greenwood, listed as the developer's representative, has previously acted as a director of development for Edged. This new campus adds to a dramatic surge in data center construction across Central Texas. The Austin-San Antonio corridor is now the nation's leading secondary data center market, with at least 55 facilities existing or planned between Temple and San Antonio. As of September, 462 megawatts of capacity were under construction locally, a staggering increase from the 9.5 megawatts recorded in the first half of 2020. If all proposed projects are completed, the region's capacity would eclipse that of the Dallas-Fort Worth market. Major investments are fueling this growth, including a joint venture by OpenAI, SoftBank, and Oracle planning to invest up to $500 million in a Stargate-related data center in nearby Milam County by 2029. The rapid expansion, however, raises significant environmental and community considerations. Recent peer-reviewed research indicates AI-driven data center operations are contributing substantially to carbon emissions and water consumption. These concerns have already impacted development, as seen in San Marcos where a large project was stalled following public backlash. The Caldwell County proposal enters a landscape where local governments, including the City of Austin, are beginning to craft frameworks to manage AI's growth and its infrastructure footprint. County commissioners are expected to discuss a development agreement for the Martindale project at a future, yet-unscheduled meeting. Source: statesman
