Residents oppose data center water agreement at packed Crystal Clear meeting

At a crowded Crystal Clear Special Utility District (CCSUD) board meeting on June 3, residents of Guadalupe County, Texas, overwhelmingly opposed a proposed agreement to provide water to the 870-acre Palomino Alpha data center development. Opponents cited significant concerns about the project's demand for up to 500,000 gallons of potable water per day amidst a statewide drought and fears of water contamination. Board members, including Joseph Benavides and Jamie Trant, also expressed reservations about the scale of water usage and potential environmental impacts.

Guadalupe County Judge Kyle Kutscher, a landowner involved in the transaction, and Tom Dubel, representing Palomino Alpha, spoke in favor of the development. They highlighted the substantial economic benefits, including an estimated $400 million in property tax revenue for the Navarro ISD, which they argued would help offset overcrowding without adding more students. Kutscher also emphasized personal property rights, asserting the right of landowners to develop their land as they see fit.

CCSUD Attorney Howard Slobodin addressed concerns by detailing protective measures within the contract, such as injunctive relief to prevent excess water use and the Texas Commission on Environmental Quality's role in contamination issues. However, board director Benavides questioned whether CCSUD had a direct role in preventing contamination, citing past information from a predecessor. Following an executive session, the board unanimously voted to postpone the decision, requesting additional information and suggesting a subcommittee to further study the water-related issues.