Lacy Lakeview needs Waco’s help to realize its data center dreams. It’s not going well.

The suburb of Lacy Lakeview, Texas, is pushing forward with a $10 billion hyperscale data center project by Infrakey, aiming to secure substantial tax revenue. However, the project's rapid development has caused significant friction with the neighboring city of Waco, which controls critical infrastructure like the regional sewer system and water service rights necessary for the data center. Waco City Manager Ryan Holt and other officials express skepticism, citing a lack of information and late engagement from Lacy Lakeview, despite the project's purported urgency. This uncoordinated approach has also intensified local opposition in the Ross area, where the 520-acre data center is planned, leading to the election of a data center opponent to the Lacy Lakeview city council. Technical challenges further complicate the project, including the need for Lacy Lakeview to annex a three-mile corridor and construct extensive new sewer mains and a treatment plant capable of handling up to 2 million gallons of wastewater daily for cooling. These infrastructure demands necessitate close collaboration with Waco, which remains hesitant. The local issues are set against a backdrop of increasing statewide and national scrutiny of the data center industry, with Texas lawmakers reportedly discussing new regulations.