Data center developer donates millions for Ellis County animal shelter, college as pushback grows

Compass Datacenters has made significant donations in Ellis County, Texas, contributing $15 million for a new animal shelter and a $12.6 million facility to Texas State Technical College. The latter aims to expand training for data center careers, with CEO Chris Crosby stating the company seeks to be a "long-term neighbor" by addressing community infrastructure needs. These contributions coincide with Compass's plans to develop an 890-acre data center property in Red Oak, where it has reportedly been expanding its footprint.

The donations, particularly the animal shelter funding, have drawn skepticism from residents, who question whether "strings are attached" and if the county will feel obligated to the data center developer. Ellis County Judge John Wray, however, assured the public that the donation is an unconditional gift and a first-of-its-kind community benefits agreement for the county.

The company's development plans are unfolding amidst growing statewide and local opposition to data centers. Critics, including Governor Greg Abbott, argue that these facilities are major drains on water and energy resources and negatively impact property values and quality of life. Governor Abbott, who previously supported data centers, has recently called for stricter regulations, including a ban on data centers in rural residential areas and the repeal of their tax exemptions. He emphasized that future AI data centers must be self-sufficient in terms of funding, power, and water management.

In response to this "noise," an 890-acre tax abatement previously offered to Compass Datacenters by Ellis County was withdrawn before a recent commissioners meeting. Chris Crosby stated that Compass welcomes new regulations, believing that Texas should set a high standard for data center development.