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.

Exciting Developments in Lockhart, Texas: A New Data Center Megasite is Coming!

Lockhart, Texas, is buzzing with excitement as Tract, a data center developer based out of Denver, Colorado, recently announced its acquisition of a whopping 1,515-acre parcel of land in Caldwell County. This strategic move was made official on May 7 and is expected to bring a whole new vibe to the area, just six miles away from some of Texas’s iconic barbecue spots!

What’s Cooking at the New Data Center?

The upcoming data center campus is set to revolutionize the tech landscape. With a focus on cloud-based operations, AI training applications, and inferencing, this project is no small fry. It’s projected to support over 2 gigawatts (GW) of power! For those keeping track, that’s enough juice to power a small city. The first phase of operations is anticipated to kick off in 2028, so mark your calendars and get excited about what this means for the future.

More Power, More Jobs

The development also includes plans for supplemental on-site generation, with an initial 360 megawatt (MW) grid connection, thanks to a partnership with the Blue Bonnet Electric Cooperative. Nothing says “business-friendly” quite like a solid power plan! And for those looking for job opportunities, you’re in luck. Tract’s new venture is expected to create thousands of construction and operations jobs, bolstering the local economy.

Why Texas?

So why is Texas becoming the go-to spot for data centers? The state’s business-friendly environment and skilled workforce are significant draws for company leaders. The growing trend of data center developments in recent years reflects the booming demand for computing and artificial intelligence technology. Governor Greg Abbott has already praised Tract’s plans, establishing it as a key player in creating well-paying jobs and enhancing the state’s power grid and tech infrastructure.

A Surging Market

The excitement doesn’t end there! In the Austin-San Antonio corridor alone, data center construction skyrocketed more than quadrupling in the first half of 2024 compared to the previous year. With a considerable amount already pre-leased, this growth signals a robust future for data centers in the region. According to projections, the emerging market in Austin is set to expand by 7% annually through 2031, which aligns perfectly with the increasing energy and cooling demands tied to AI and data ventures.

Grid Capacity Challenges

However, while this growth is thrilling, it does come with its set of challenges. There are rising concerns about how many data centers could impact the electrical grid. Texas is facing discussions around regulation, especially in relation to energy-heavy industries like crypto mining and data operations. Recent commentary indicates the need for a balance between being a tech powerhouse and ensuring that the state’s electrical grid remains stable. The Electric Reliability Council of Texas (ERCOT) is already forecasting that overall grid capacity must grow substantially to meet the demands from these new data centers, which is crucial for sustainable development.

What’s Next for Tract?

Tract is not just stopping in Texas. With several active data centers and projects in states like Arizona, Nevada, Utah, Virginia, Illinois, Iowa, Minnesota, and North Carolina, the company is establishing itself as a leader in creating master-planned parks ready for other companies to develop. Founded by former Cologix CEO Grant van Rooyen, Tract has its sights set on making impactful and transformative contributions to the data center industry.

In Conclusion

As plans unfold over the coming years, the new data center in Lockhart promises to bring enhanced infrastructure, job opportunities, and invigorated energy solutions to Texas. With the cooperation of local organizations and a committed approach to sustainability and growth, this project could be a game-changer for both the community and the tech industry. So stay tuned, Lockhart and beyond—an electrifying future is on the horizon!

Lockhart, Texas Welcomes New Data Center Megasite