Rural residents alarmed as a second data center is proposed in the Waco area
Cipher Digital proposes a hyperscale data center in Riesel, Texas, potentially using up to 500 megawatts and connecting to the state grid. The company is exploring water supply options after ruling out Riesel's city water. This proposal, combined with concerns about another data center in Lacy Lakeview and a moratorium in nearby Hill County, is generating significant opposition among Riesel residents and local leaders who feel left in the dark about the details.
A New York-based data center developer, Cipher Digital, is proposing a hyperscale data center on a 300-acre site north of Riesel, a small agricultural town east of Waco, Texas. The project, code-named "McLennan," has been in development for over two years and is projected to use up to 500 megawatts of electricity, equivalent to the power consumed by 100,000 Texas homes. Cipher Digital has applied to connect to the state's power grid, managed by the Electric Reliability Council of Texas (ERCOT), and expects state approval by June.
The proposal has sparked confusion, anxiety, and opposition among Riesel residents and local leaders, who feel they lack details about the project. Drew Armstrong, Cipher's head of strategic initiatives, stated the company would share water usage figures once reasonable estimates are available, confirming they do not plan to use Riesel's city water and are exploring ground or surface water options.
This development comes amid broader political backlash against data centers in Texas. A separate proposed Infrakey data center north of Lacy Lakeview has already generated controversy and strained relationships between Lacy Lakeview and Waco. Furthermore, nearby Hill County commissioners recently enacted a one-year moratorium on data center development, highlighting the growing regional concerns over such projects.