LEDA CEO responds to concerns over data center coming to Lubbock
The Lubbock Economic Development Alliance (LEDA) confirmed that CORVA Infrastructure Services will build a new AI data center in Lubbock, Texas, on 102 acres. LEDA CEO John Osborne addressed concerns about the project's quiet development and clarified that it operates under existing zoning laws without tax incentives. The project is expected to create 15 jobs and generate significant tax revenue for the city and county, while being a smaller-scale facility with moderate resource usage.
Lubbock Economic Development Alliance (LEDA) President and CEO John Osborne has confirmed that an AI data center by CORVA Infrastructure Services is set to be built in Lubbock, Texas. The announcement was made following a purchase and sale agreement with CORVA during LEDA's June board meeting. The data center will occupy approximately 102 acres of land north of the loop on Municipal Drive, within city limits.
Osborne clarified that the project will proceed under existing city codes and regulations, requiring no new rezoning or tax incentives. This means the Lubbock City Council was not required to vote on its approval. He explained that companies often prefer to keep development plans quiet until ready for public announcement, citing potential impacts on stock prices or employment. Osborne also noted that LEDA had previously turned away approximately $25 billion in projects over the past 18 months, primarily hyperscale data centers and manufacturers, due to high water usage concerns, emphasizing LEDA's commitment to community needs.
The CORVA data center is described as small-scale, not a hyperscale facility, and is projected to consume a maximum of 27 megawatts, starting at 6 megawatts. For comparison, Texas Tech University used about 18 megawatts last year. Osborne highlighted the project's benefits, including the creation of 15 jobs with an average wage of $85,000, which aims to retain college graduates from local universities and South Plains College. Additionally, with no incentives, the property will immediately contribute to tax rolls, generating an estimated net positive of $23 million for the City of Lubbock over ten years, and approximately $1.4 million annually for Lubbock County, plus $300,000 for the Hospital District.