Abilene apartment project lands construction financing as OpenAI’s Stargate gobbles city’s housing
An Abilene apartment project secured $66 million in construction financing to build 312 units, aiming to alleviate a housing crisis exacerbated by OpenAI's Stargate data center campus. The influx of data center workers has caused a significant spike in rental rates in the city. The situation reflects a broader statewide debate on data center impacts, with Governor Greg Abbott calling for bans in rural areas and increased regulation.
A new 312-unit apartment complex, The Lariat at Abilene, has secured a $66 million construction loan from Dwight Capital, with Lubbock-based developer Martin Inderman leading the project. The complex, located on a 13-acre site on McKinley Drive, aims to address a severe housing shortage in Abilene, Texas.
The housing crisis in Abilene has been significantly exacerbated by the construction of OpenAI's Stargate, a 4 million-square-foot data center campus. The influx of thousands of data center workers into the city of 130,000 has led to a 42 percent increase in median rent year-over-year, reaching $1,700 in February. City officials are reportedly favoring short-term solutions, like additional mobile home parks, as housing needs related to construction are deemed temporary.
The Abilene situation is part of a larger debate across Texas regarding data center proliferation, which has drawn criticism from communities concerned about water usage, noise pollution, and tax breaks. Some municipalities, including Brazoria County, have attempted to block projects, while San Marcos and Fort Worth are considering bans. Governor Greg Abbott has notably shifted his pro-business stance, calling for an outright ban on data centers in rural areas and advocating for increased state-level regulation in a letter to the Texas Legislature.