$10 billion data center proposal advances near Lacy Lakeview

InfraKey Capital's proposed $10 billion data center near Lacy Lakeview, Texas, is advancing after the company filed a petition with the City of Waco. The petition seeks the release of 521 acres from Waco's extraterritorial jurisdiction (ETJ), a move intended to enable Lacy Lakeview to annex the land. Under Texas law, Waco has 45 days to act on the petition and is required to release the land without public hearing or council vote if statutory requirements are met, according to the city. Lacy Lakeview City Manager Calvin Hodde expressed support for the project, noting that annexation would allow the city to impose "municipal layers of government" with restrictions and requirements, unlike if the facility were built in an unincorporated area. Hodde also highlighted a potential "win-win" for both cities regarding water management, proposing a "sewer mining" plan where treated wastewater effluent would cool the data center, offloading sewage treatment for Waco and providing a revenue source. This plan, Hodde claims, would not use drinking water from Lake Waco. However, local residents have voiced strong opposition, packing city council meetings with concerns. Neighbor Karmay Huskey criticized the water plan as misleading, stating that data centers require immense amounts of water beyond what recycled wastewater can fully provide. Huskey also raised alarms about potential temperature increases in the surrounding area, citing a possible rise of "more than 16 degrees for up to a six mile radius." Hodde acknowledged these fears, attributing them largely to residents' discomfort with change. InfraKey Capital stated its satisfaction with the progress and ongoing discussions between Lacy Lakeview and Waco.