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 is set to become the home of a significant new data center project, as Tract, a Denver-based data center developer, has announced the acquisition of a 1,515-acre parcel of land in Caldwell County. This purchase, revealed on May 7, positions Tract to establish a data center campus anticipated to support over 2 gigawatts (GW) of power.
The land, located just northwest of Lockhart and a mere six miles from some of Texas’s renowned barbecue joints, marks a strategic move in the rapidly growing field of data management and cloud services. Tract plans to kick off operations at the new facility around 2028, with an initial grid connection of 360 megawatts (MW) being developed in collaboration with Blue Bonnet Electric Cooperative. Moreover, the site will include provisions for supplemental on-site power generation.
With a focus on cloud-based operations, AI training applications, and inferencing, this new campus is referred to as a “megasite,” reflecting its considerable potential within the tech landscape. Tract’s CEO highlighted the advantageous business climate in Texas as a key factor in the decision to develop this site, as well as the availability of a skilled workforce capable of supporting thousands of jobs during both construction and ongoing operations.
Texas has emerged as a prominent hub for data centers, experiencing an unprecedented wave of developments over recent years. This surge is partially driven by the increasing demand for computing power, especially related to artificial intelligence. The state’s supportive regulatory environment and infrastructure enhancements have attracted a variety of tech companies seeking to establish operations in the region. In fact, Texas Governor Greg Abbott has publicly endorsed Tract’s plans, citing anticipated benefits such as the creation of high-paying jobs and the enhancement of the state’s overall power grid and technology infrastructure.
However, the rapid expansion of data centers in Texas has raised some alarms regarding their potential impact on the state’s electrical grid. Similar to the recent regulation of cryptocurrency mining facilities, concerns have been voiced about how these energy-intensive operations could burden the existing grid system. Texas’s Lieutenant Governor recently emphasized the need for a balanced approach, ensuring that while the state aims to lead in areas such as AI and data centers, the energy requirements of these facilities do not heavily compromise grid stability.
As the demand for data centers continues to rise, particularly in the Austin-San Antonio corridor, construction activity has accelerated. Reports indicate that data center construction in this area has more than quadrupled in the first half of 2024 compared to the same period last year. Many of these projects are already pre-leased, which reflects the urgency and necessity for such infrastructure amidst burgeoning technological advancement.
Market forecasts suggest that Austin’s emerging data center sector will grow significantly, with an annual increase of approximately 7% projected through 2031. This growth aligns closely with the increasing energy and cooling demands stemming from new data applications and AI-related initiatives. In response to the growing load expected from these facilities, the Electric Reliability Council of Texas (ERCOT) has indicated that substantial increases in overall grid capacity will be required to meet this demand.
Tract, which was founded by former Cologix CEO Grant van Rooyen, is building a portfolio of master-planned data center parks designed for seamless development by various companies. With this latest acquisition in Texas, Tract aims to play a significant role in catering to the evolving needs of the data management sector while contributing to the economic growth of the region.
Deeper Dive: News & Info About This Topic
- Data Center Dynamics
- Wikipedia: Data Center
- Community Impact
- Google Search: Texas Power Grid
- CoStar
- Google Scholar: Texas Data Center Growth
- Chronicle
- Encyclopedia Britannica: Data Centers
- Fuel Cells Works
- Google News: Texas Data Center Expansion
