Red Creek Power Substation One of a Kind
Cipher Digital and Emergent are proposing two large data center projects totaling 2.2 GW in San Angelo, Tom Green County, TX, attracted by the high-capacity Red Creek substation. These projects face significant local opposition concerning water use, taxes, road impact, and housing, and their approval is pending a statewide large-load audit by Gov. Greg Abbott.
Data center developers Cipher Digital and Emergent are planning two massive data center projects in San Angelo, Tom Green County, Texas, drawn by the high-capacity AEP Texas Red Creek 345-kV substation. Cipher Digital, proposing a 1 GW facility, and Emergent, with a 1.2 GW plan, are both seeking interconnection with the substation, with a combined power application of 2.2 GW currently on hold pending a statewide audit of large-load projects ordered by Gov. Greg Abbott.
Cipher's representative, Lee Bratcher, presented plans to the Tom Green County Commissioners Court, highlighting the use of a closed-loop cooling system with non-potable water, no requests for tax abatements, and the creation of 100-300 permanent jobs.
However, the projects face strong local opposition. Residents at the meeting voiced concerns about water usage, potential groundwater pollution, impact on City Farm Road, and strain on local housing and infrastructure. Commissioner Shawn Nanny pushed for a high percentage of local construction workers, a full-time ombudsman, and a decommissioning bond. Activist Allie Devereaux and realtor Kimberly Greenfield raised alarms about the projects' scale, noise, traffic, and potential negative effects on property values.
While Bratcher emphasized Cipher's financial stability, its commitment to public dialogue, and its policy of not using potable water or requesting abatements, the county officials, including Commissioner Ralph Hoelscher, expressed skepticism about tax breaks and the impact on local resources. County Judge Lane Carter noted the difficulty for elected officials in navigating the data center boom amidst public scrutiny. The ultimate approval for both Cipher Digital and Emergent's projects hinges on the completion of Gov. Abbott's audit, with ERCOT's next announcement anticipated by December 7.