Developer withdraws proposed data center rezoning in Hutto after community pushback

Zydeco Development has officially withdrawn its rezoning request for a proposed AI data center project in Hutto, Texas, effectively halting the development. City officials announced the withdrawal on Friday, confirming the project will not proceed. The developer had sought to rezone a parcel at 450 Ed Schmidt Blvd. from multi-family residential to heavy industrial to accommodate the data center. This request was pulled just before a special Planning and Zoning Commission meeting that had been scheduled for April 20 and has now been canceled. Hutto’s Director of Development Services, Howard Koontz, had previously recommended against the proposal, stating it did not align with the city’s Future Land Use Map or its SOAR 2040 Comprehensive Plan, which reflects the community's vision for growth. The withdrawal also comes after significant, organized opposition from residents, including a grassroots group called Stop The Hutto Data Center. Co-organizer Katie Martin noted their efforts to gather signatures from nearby property owners to trigger a state law requiring a supermajority vote for approval, indicating they had secured a significant portion of the necessary signatures before the withdrawal.