Zydeco Proposes Major 950,000 Sq Ft Data Center Campus in Hutto, Texas
April 8, 2026
A significant new data center project is under consideration in the rapidly expanding Austin, Texas, metro region, highlighting the continued demand for digital infrastructure in key growth markets. Property developer Zydeco Development Corporation has filed an application to rezone a 40-acre tract of land in Hutto, located approximately 28 miles northeast of Austin, to allow for the construction of a massive data center campus dubbed "Project Hutto."
The proposed facility would encompass a single building totaling 950,000 square feet (88,255 square meters). Upon completion, the campus is designed to deliver approximately 70 megawatts of critical IT capacity. Zydeco emphasizes the project's economic potential, stating it will provide an estimated $200 million in predictable taxable value for the local area. The developer also notes plans to implement a closed-loop cooling system for the facility.
The project's initial review took place at a Hutto Planning and Zoning Commission meeting on April 7, though no formal action was taken. The commission is scheduled to deliberate and potentially recommend approval of the rezoning request at its next meeting on April 20. The final decision authority rests with the Hutto City Council. Zydeco, an Austin-based firm with experience in both residential and commercial developments including the MetCenter Creative business park, intends to commence detailed design and site-plan engineering in May, pending the necessary municipal approvals.
If approved, Project Hutto would join a concentrated cluster of more than 40 data centers already operating in the wider Austin region, which hosts major operators like Digital Realty, CyrusOne, and EdgeConneX. The proposal underscores the strategic importance of secondary markets within major tech hubs, where available land and power capacity are attracting substantial investment to support cloud, enterprise, and AI-driven computing demands.
Source: datacenterdynamics
