McGregor welcomes 2 new industrial developments as it faces water challenges
McGregor is selling land for a new data center and a manufacturing plant, but faces significant challenges over its water usage from the Trinity Aquifer, for which it has been cited by a conservation district. A local resident is also circulating a petition to recall the mayor due to these water issues, which are exacerbated by existing usage by SpaceX and concerns about the data center's water demands.
The City of McGregor, Texas, is advancing two new industrial developments despite facing mounting criticism and regulatory challenges over its water usage from the Trinity Aquifer. The McGregor City Council recently voted to sell 499 acres to Galaxy, a data center developer, for over $7 million, with Galaxy pledging an investment of at least $400 million, potentially up to $1 billion. Simultaneously, the council approved the sale of 124 acres to Florida-based Fidelity Manufacturing, which plans to expand its metal enclosure production and potentially hire 500 long-term employees.
These developments come as the Southern Trinity Groundwater Conservation District has cited McGregor for exceeding its permitted water extraction limits since 2023, primarily driven by the significant consumption of SpaceX, which operates a rocket testing facility in the city's industrial park. The district is demanding the city pay a fine and secure additional water rights to address the violations. McGregor City Manager Kevin Evans stated the city is working with the district and has solutions in place, noting that the industrial park's water use is not solely attributable to SpaceX.
Local resident Dennis Fehler, a vocal critic of city leadership, is circulating a petition to recall Mayor Jim Lilley, arguing that the proposed data center and other industrial expansions will exacerbate McGregor's water problems. Fehler highlighted Galaxy's own presentation, suggesting the data center could use up to 30,000 gallons of water per day, or nearly 11 million gallons annually, and criticized the city for approving another major industrial deal amidst existing water issues. Conversely, McGregor economic development director Andrew Smith defended the data center project, noting Galaxy proposes a water-conserving closed-loop cooling system and that the city utilizes only half of its available surface water from Lake Belton.