Council rejects review of data center agreement

The Sulphur Springs City Council recently voted 4-3 against a motion to review the city's economic development agreement with SSDC1, LLC, concerning a proposed data center. Councilman Jay Julian initiated the proposal, describing it as an "audit" to assess the developer's compliance with construction deadlines, insurance coverage, and any breach notices.

Julian highlighted that the agreement stipulated work should have begun by September 1, citing separate litigation that projected a start date of September 26, 2025. An attorney for SSDC1, LLC, stated that construction was paused due to litigation and a court order under the agreement's force majeure provisions. Although an appellate court dissolved the restraining order in July, a trial judge is still considering altering or re-entering the order. The attorney also confirmed that SSDC1 had obtained and renewed an insurance policy covering the Thermo property, effective since January 9.

City Manager Marc Maxwell presented conservative revenue estimates, projecting $23.2 million to $29.8 million from the first phase of the data center, which could fund a $50 monthly electric and water credit for residents and eliminate the city's road maintenance fee. Maxwell also clarified that the city is not pursuing a nuclear project with One Nuclear, and announced that CyrusOne, now associated with the data center proposal, would host a community town hall on September 24. Meanwhile, residents protested outside City Hall, citing concerns about noise, lighting, utility strain, and the project's impact on nearby homes and wildlife.