Zydeco bows out of data center

Zydeco Development has formally abandoned its plans to construct a 70-megawatt data center on a 41-acre parcel at 450 Ed Schmidt Blvd. in Hutto, Texas. The developer withdrew its application for rezoning from multifamily residential to heavy industrial, as well as an accompanying application for a public utility district, on April 17, just days before a scheduled continuation of a public hearing. The decision came after overwhelming community opposition during an April 7 Hutto Planning & Zoning Commission meeting. Residents, including Christine Benson and Katie Martin, organized a petition drive against the project, citing concerns about noise, pollution, and the strain on local electric and water resources. Mayor Mike Snyder acknowledged the "will of the people," stating he would have voted against the project despite its potential tax revenue benefits. Wes Gilmer, principal with Zydeco Development, had argued that the data center would be a "low-impact, thoughtful neighbor" and a better option than a previously approved 173-unit multifamily development for the site. However, Howard Koontz, Director of Development Services, expressed that the proposal was inconsistent with Hutto's growth vision. Following this outcome, local homeowners are now focused on advocating for a city ordinance to restrict or regulate data centers from being built in residential areas, a similar initiative reportedly underway in neighboring Taylor.