Project Mustang gallops ahead, won’t seek annexation
The developers of Project Mustang, a large data center and gas power plant near Taylor, Texas, have withdrawn their annexation application and will proceed with the project outside city limits. This decision follows a 90-day pause by the Taylor Planning and Zoning Commission on the annexation and zoning changes requested by the developer. The city is continuing negotiations with the developer to address community concerns regarding noise, water use, setbacks, and potential community benefits.
The developer behind "Project Mustang," a proposed 665-acre data center and gas power plant located just outside Taylor, Texas, has announced its decision to withdraw an application for annexation by the city. City officials in Taylor confirmed on September 3 that Big Watt Digital LLC and PH Digital Data Center LLC, the companies involved, will now move forward with the project without going through city channels.
This decision comes after the Taylor Planning and Zoning Commission imposed a 90-day pause in August on the approval process for the project's requested annexation and zoning changes, citing a need for more information and time for the city to develop its own zoning guidelines for high-tech businesses. Daniel Seguin, Taylor's Executive Director of Community Services, noted that the developer did not explicitly state whether this pause or the community's vocal opposition influenced their decision. However, at an August meeting, Big Watt representative John Stokes had indicated the project would proceed with or without city collaboration, aiming for full operation by 2028.
Because the site is in Taylor's extraterritorial jurisdiction (ETJ), the city currently lacks authority to halt or regulate the project's development. Local community advocate Carrie D'Anna emphasized that residents are "pushing back on the whole project" and desire "land and human-centered zoning." The city stands to lose millions in property and sales/use tax revenue if the data center remains outside its limits. Negotiations between the city and the developer are ongoing, with city officials hoping to reach an agreement that addresses community priorities such as noise, water use, setbacks, and other benefits. An item concerning legal counsel for the project is on the executive session agenda for an upcoming city council meeting. This development follows a similar incident in April where Zydeco Development canceled a 70-megawatt data center project in nearby Hutto due to significant public backlash.