
AI data center project breaks ground near Abernathy
News ClipLubbock Avalanche-Journal·Abernathy, Hale County, TX·4/9/2026
Aligned Data Centers has broken ground on Project Caprock, a 540MW AI data center facility covering 313 acres in Hale County, Texas. The project is expected to have a $5 billion economic impact and will feature advanced liquid cooling and a closed-loop water system to protect the Ogallala Aquifer. Xcel Energy will partner on building the electrical infrastructure, with the first facility expected to be operational by early 2027.
announcementenvironmentalwaterelectricitygovernmentzoning
Gov: Abernathy City Manager, Lubbock Economic Development Alliance, Texas State Sen. Charles Perry
Aligned Data Centers has commenced construction on Project Caprock, a significant 540MW artificial intelligence (AI) data center campus situated on 313 acres in Hale County, Texas, near Abernathy. The project, which will encompass six facilities totaling 1.65 million square feet, is projected to generate a $5 billion regional economic impact and create numerous high-paying technology and construction jobs.
Andrew Schaap, CEO of Aligned Data Centers, emphasized the company's commitment to both meeting customer capacity demands and addressing community concerns regarding responsible AI infrastructure development. The facility will incorporate advanced DeltaFlow liquid cooling technology, an air-cooled heat rejection system, and a closed-loop water design to ensure water recirculation and protect the Ogallala Aquifer, minimizing competition with local agricultural and residential water needs.
Abernathy City Manager Julie Arrington hailed the project as a transformative economic opportunity for the city, praising Aligned Data Centers as a partner dedicated to innovation, sustainability, and long-term regional growth. The initial facility is anticipated to be operational by early 2027. Xcel Energy is collaborating on the project to develop and fund the necessary electrical infrastructure, ensuring robust and reliable power without impacting existing community services.
The announcement follows a previously proposed AI data center project in North Lubbock that was withdrawn from the zoning agenda in January due to concerns about power generation and zoning changes. Texas State Senator Charles Perry, R-Lubbock, highlighted the potential for significant industry growth and economic revitalization in rural Texas, while also cautioning against developers who seek excessive incentives without clear long-term commitments.