Colorado City restaurants question roadside food sales near data center

News Clip2:27BigCountryHomepage·Colorado City, Mitchell County, TX·8/16/2026

Local restaurant owners in Colorado City, Texas, are voicing concerns about unregulated roadside food sales near the construction site of the Cipher Barber Project data center. They argue that these informal vendors operate without proper permits, licenses, or tax obligations, creating unfair competition. The vendors, however, claim they are providing traditional food to data center workers, stating that authorities have deemed their sales permissible.

government
Gov: Colorado City, Sheriff's Office, TXDOT

Colorado City, Texas, is experiencing a local business dispute stemming from the ongoing construction of the Cipher Barber Project data center in Mitchell County. Roadside vendors, including Lizeth Salinas and her mother, are selling home-cooked meals along the I-20 access road to data center workers. They aim to provide traditional food and a sense of home to the workers, with Salinas stating that the Sheriff's Office and TXDOT have stopped by and indicated their activities are permissible.

However, established restaurant owners, such as Flor Guerra and Douglas Beaty of La Mexicana C-City, are expressing frustration and anger. They argue that these pop-up vendors operate without the necessary licenses, permits, taxes, and payrolls that established businesses must adhere to, creating an unfair competitive landscape. La Mexicana C-City had initially seen a business boom when the data center project broke ground but observed a decline in business after the roadside stands began operating. The restaurant owners also raised safety concerns regarding the unregulated food sales.

Restaurant owners insist that laws and regulations should apply equally to all businesses. A reporter from KTAB attempted to get a comment from Colorado City Hall, but no statement was provided at the time of the broadcast.