Lacy Lakeview council votes to annex land for proposed $10 billion AI data center

LACY LAKEVIEW, Texas (KWTX) - The Lacy Lakeview City Council voted 6-1 to annex 520 acres for a proposed $10 billion artificial intelligence data center, despite opposition from residents who packed the council meeting.

The annexation covers land in Waco’s extraterritorial jurisdiction west of Elm Mott around Taylor Lane. Some attendees stood in the hallway due to the crowded meeting room.

Residents voiced concerns about potential higher utility bills, lower property values, air and noise pollution, and harm to animals and humans from the proposed data center.

“This being something that Lacy Lakeview wants, no we don’t, let me just say that,” one resident said during public comment.

Residents cite generational property concerns

Resident Lauren Hill distributed photos of her family’s property, which she said they have owned for seven generations. Hill said she was disappointed her family’s property could be disrupted by noise and air pollution from the data center.

“For many of us, we aren’t leaving financial wealth for our children, our land is the only thing that we’re rich in,” Hill said.

Many residents said the data center mainly benefits executives rather than the community.

“They only have interest in increasing their pockets and causing themselves to be elevated. But what it will do to the actual people in this community, I don’t think they care,” one resident said.

Mayor cites financial pressures

Mayor Charles Wilson acknowledged he and the council still have questions about the project but said the city faces financial pressures that make the development attractive.

Wilson said the city has a $26 million bill for repairs and future resources with only a $10 million budget. He said funds from the data center could help reduce that burden.

“It costs money to run a city and it is not possible to simply tax the people to pay. So, when a corporation reached out to you about economic development plans that is bringing a potential 15 billion dollars’ worth of tax base, it’s impossible for us to just say, ‘No thank you’ and walk away,” Wilson said.

Company plans to use treated wastewater

Infrakey, the company behind the project, sent representative Sujeet Draksharaa to attend the meeting. He said the company was drawn to Lacy Lakeview because of its wastewater treatment capabilities.

Draksharaa said the company saw an opportunity to repurpose treated wastewater that cannot be consumed for drinking.

“This is a very useful proposition for us to come up. Let’s work with you, we’ll build our treatment, we’ll take that water, we’ll reuse it. Once it gets into our treatment area, we’ll use it for our purposes, which is to cool the servers,” Draksharaa said.

Wilson said the city will spend time reviewing the plans again before moving forward.

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