The San Angelo City Council has taken a significant step toward establishing a data center in the region by approving a lease agreement for approximately 347 acres of city-owned land. This decision, made during the March 17, 2026, council meeting, allows the city manager to negotiate and execute a lease with St. Angelo Data Center Campus LLC. The proposed terms include a five-year lease with an annual rent of $1 million. This agreement is a prerequisite for the company to apply for power through the state’s electric grid operator, a necessary step under new state regulations. However, officials emphasize that this lease does not guarantee the project’s completion. If finalized, the data center could bring substantial economic development to the Concho Valley. Source
Community response has been mixed. While some residents welcome the potential economic benefits, others express concerns about the project’s impact on local resources. The Tom Green County Commissioners Court recently adopted a resolution calling for stronger statewide regulation of data centers. The resolution highlights worries about the potential strain on water supplies, the electric grid, and infrastructure. It urges the Texas Legislature and Governor Greg Abbott to require greater transparency regarding projected electricity and water demands, mandate independent impact studies, and consider granting counties more authority over large-scale industrial projects in unincorporated areas. Source
As the data center project progresses, it is crucial for city officials and developers to engage with the community, address concerns, and ensure that the development aligns with San Angelo’s long-term sustainability goals.