
Guadalupe County OKs data center tax abatements, development agreement
News ClipHerald-Zeitung·Guadalupe County, TX·4/30/2026
Guadalupe County Commissioners approved a development agreement and tax abatements for Cloudburst Texas LLC to build a data center facility. The decision followed nearly four hours of discussion, with many citizens expressing strong opposition due to concerns over water and energy usage, noise, and the proposed tax breaks. Despite community concerns, the measure passed with a 3-2 vote.
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Gov: Guadalupe County Commissioners, Navarro ISD, Guadalupe County Judge Kyle Kutscher, Precinct 1 Commissioner Jacqueline Ott, Precinct 4 Commissioner Stephen Germann, Commissioner Pct. 2 Drew Engelke, Commissioner Pct. 3 Jim Wolverton
In a split 3-2 decision, Guadalupe County Commissioners approved a development agreement and tax abatements for Cloudburst Texas LLC, a subsidiary of Colorado-based Cloudburst Data Centers Incorporated, allowing the company to construct a data center facility on 706 acres in northern Guadalupe County, Texas. The vote followed a nearly four-hour meeting where Cloudburst representatives presented their plans, and numerous community members voiced strong opposition.
Citizens raised significant concerns regarding the project's potential environmental impact, specifically its substantial water and energy requirements. Residents like Abigail Lindsey, a Hays County resident, cited records from Crystal Clear Special Utilities District indicating the proposed 1.2 to 1.45 gigawatt gas-powered plant would require millions of gallons of water daily for cooling, potentially impacting local water resources. Cibolo resident Richard Ashcraft echoed these concerns, drawing comparisons to data centers in the San Antonio area, while fifth-generation farmer Theresa Garcia questioned the local job creation benefits promised by the abatement.
Cloudburst's proposal included 10 to 12 buildings, each expected to use about 2,000 gallons of water per day for data center operations and generate an estimated 85 decibels of noise. The company also requested a 10-year tax abatement plan from Guadalupe County, which was a point of contention for many residents and Commissioners Ott and Germann. Despite concerns, Guadalupe County Judge Kyle Kutscher, Commissioner Pct. 2 Drew Engelke, and Commissioner Pct. 3 Jim Wolverton voted in favor of the development and tax abatement, with Kutscher dismissing some opposition claims as "completely inaccurate."
Commissioners Ott and Germann voted against the measures, citing a lack of transparency from Cloudburst and concerns about dealing with a developer rather than the end-user company. Ott also expressed skepticism about the direct benefits of such a facility for the immediate community.