In the serene countryside of Hays County, Texas, a contentious AI data center project, which has been the subject of significant community opposition, seems to have finally broken ground. Despite local resistance, the initiative is moving forward, marking a significant development in this rural area.

CloudBurst Data Centers unveiled its intention to construct the facility back in February. The company had originally shared a timeline on its website, suggesting that construction would commence earlier in the year. However, it seems that progress was slower than anticipated. During a meeting in May, Hays County Judge Ruben Beccera commented on the limited influence the commissioners’ court holds over developments on private lands, highlighting the challenges faced in regulating such projects.

Local resident Jennifer Lindsey, whose family has been anchored near the proposed site since the 1990s, expressed a mix of relief and resignation. “We managed to delay them by a few months,” she noted, emphasizing that while the groundbreaking was initially slated for April 2025, it only commenced in November. “We feel really happy about that,” Lindsey added, acknowledging the community’s efforts. Nevertheless, with all necessary permits acquired, the project is poised to proceed.

The Lindsey family learned in February that plans were underway for multiple data centers in the area, including CloudBurst’s. The family and environmental activists have been trying to stop them ever since. 

On Wednesday, the fight against the CloudBurst facility came to an end. 

“Today, specifically, there was a bulldozer at one location with a tent, and then there was a tent and chairs set up. We determined it was a groundbreaking ceremony,” Lindsey said. “It’s devastating,” she added through tears. 

As the company held its ceremony, around a dozen protesters, including the Lindsey family, banged pots and drums while chanting in opposition. 

“We came out here to not let them enjoy themselves,” Lindsey said. “That’s the right we have – that’s what we’re given as citizens – to come out and be on public lands and show them that we aren’t happy, that they are taking something really precious away from us.”

“From the outside, it looks like they’re just really happy with themselves,” Lindsey continued. “This isn’t a wealthy area – all these people are working class,” Lindsey added. “You see luxury cars pulling in people with money. It’s hard not to judge.”

CloudBurst had not responded to our request for comment. If it does, this story will be updated. 

CloudBurst presentation in May

Water is used to cool down equipment within data centers. A large data center can use over 500,000 gallons of water a day, the equivalent of over 4,000 people’s daily water use, according to the University of Illinois Urbana-Champaign.

At a Hays County Commissioners Court meeting in May, CloudBurst said it would recycle its water and attempted to dispel concerns about tainted water leaking into streams. At that time, CloudBust said it had not yet determined how much water the center would use. 

“I have not seen any studies that show us that there are massive leaks. And even if there is a leak, it leaks into the data center, it doesn’t leak out into the field,” Cynthia Thompson, an executive chairperson with CloudBurst, said in May.

According to the presentation’s backup documents, the company would attempt to use solar panels, low-level lighting and minimal water. The company said it would not build in a floodplain and would keep noise to a minimum. Thompson said the company is committed to preserving wildlife. 

A key part of Thompson’s presentation was education on the need for more data centers.

 “When you Google someone, when you take a picture, all that goes in the cloud, and so you need more data center space to hold that,” Thompson said. “We’re fulfilling a need in a community.”

“I don’t think there’s ever a perfect place when you’re building a data center,” she continued. “Never will you have 100% of the people happy.”

Economist Vance Ginn, founder of Ginn Economic Consulting, said projects like the CloudBurst data center come with both pros and cons.

“At the end of the day, there are tradeoffs associated with [data centers], both negative and positive, and we’ve got to understand them,” Ginn said. “If this is something that’s coming in close to their home, of course, it’s natural to have those concerns.”

Still, he believes these projects will ultimately benefit the state and the localities where they are built. Locally, he said, a potential boon could be more tax revenue, which could prevent property taxes from hiking.

“I think these are going to be net benefits for Texas, for the economy, and really for people to find more jobs in the future,” Ginn continued.