$10 billion data center proposal advances near Lacy Lakeview, Texas

News Clip3:47KWTX News10·Lacy Lakeview, McLennan County, TX·5/13/2026

InfraKey Capital has filed a petition asking the City of Waco to release over 500 acres from its extraterritorial jurisdiction, which would allow the City of Lacy Lakeview to annex the land for a proposed $10 billion data center. Waco has 45 days to act, and if the petition meets requirements, it must release the land. The project also involves a "sewer mining" plan for cooling water, a proposal that faces some resident disagreement.

zoninggovernmentwateropposition
Gov: City of Waco, City of Lacy Lakeview

A proposed $10 billion data center project near Lacy Lakeview, Texas, is advancing after InfraKey Capital filed a petition requesting the City of Waco to release 521 acres of land from its extraterritorial jurisdiction (ETJ). This move would allow Lacy Lakeview to annex the property, located along Taylor Lane, for the proposed development. Under Texas law, Waco has 45 days to respond, and is required to release the land without public hearing or city council vote if the petition meets all requirements.

Lacy Lakeview City Manager Calvin Hardy expressed support for the project, viewing annexation as beneficial for residents. He noted that bringing the land into Lacy Lakeview's jurisdiction would enable the city to impose municipal restrictions and requirements, offering better protection than if the project were built in an unincorporated area. Hardy also highlighted a "sewer mining" plan, where treated wastewater would be used to cool the data center, benefiting Waco by offloading sewage treatment and gaining future growth capacity.

However, some local residents disagree, questioning the project's impact, particularly regarding water usage, and stating that a "closed loop system is misleading at best." While Lacy Lakeview aims for a "win-win" situation by selling treated fluid to the data center, concerns about the project's overall implications for the area persist.