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Runner-up 2

Runner-up · Smart Infrastructure · Data-center siting

Taylor ties data-center growth to closed-loop cooling.

Taylor, Texas, negotiated proposed operating conditions for a 664-acre data-center campus with on-site generation, using annexation to require reclaimed-water closed-loop cooling, noise limits and developer-funded infrastructure.

Smart Infrastructure: Taylor ties data-center growth to closed-loop cooling.
Annexation becomes the mechanism for enforcing cooling, noise and utility limits.

The City of Taylor reached a proposed development agreement with Big Watt Digital and PowerHouse Data Centers for Taylor Technology Campus, formerly Project Mustang. The 664-acre project includes data-center buildings and on-site power generation and will return to City Council for an October 8 vote after the developers withdrew an earlier annexation application.

If approved, annexation would bring the site under binding city conditions covering water, noise, setbacks and community benefits. The cooling system must be closed loop and use reclaimed water, with an initial fill of 1.575 million gallons for the full site; the developers must also pay for required utility connections.

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01

What changed

The developers had withdrawn their prior annexation request, leaving the project outside Taylor’s zoning authority. What changed on October 2 is a negotiated path back into the city with specific operating conditions that would be enforceable if Council approves the agreement.

02

Why it matters

Cities often face a binary choice between accepting a data-center project and losing jurisdiction over one built just outside their limits. Taylor’s proposal treats annexation as an infrastructure-control mechanism: the city gains authority over cooling design, noise, setbacks and utility connections, while the developer gains a clearer route to approval. For operators and site selectors, it shows that water architecture and community impacts are becoming front-end engineering requirements, not public-relations add-ons. The model is still contingent, however. Council has not voted, final construction phasing and power capacity are not fixed, and enforceability will depend on the text and monitoring of the final agreement.

03

What to watch

Watch the October 8 Council vote, the executed agreement, campus megawatt and generation capacity, reclaimed-water delivery schedule, noise-monitoring rules, construction phasing and remedies if operating limits are breached.

Why it was a runner-up

The agreement converts local concerns into concrete operating conditions, but City Council has not yet approved it and construction has not begun; the Amazon permit is already issued and BMW is already producing.

Impact: 81/100 · Confidence: 96/100

Taylor’s official release identifies the parties, acreage, vote date and operating conditions, while KUT independently confirms the annexation purpose and cooling requirements. The terms are well supported; approval and implementation remain prospective.

Read this edition’s Daily Signal →

Sources

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