Debate grows in rural Texas as two mayors clash over a $10 billion AI data center project

A small-town fight reaches Texas

A $10 billion AI data center plan has pushed two nearby Texas mayors into a public debate over land, money, local control, and rural growth.

Ross residents live beside the proposed site, while Lacy Lakeview may gain tax money, sewer fixes, and new leverage over future planning choices for the region.

Two mayors with shared roots

Ross Mayor Jim Jaska and Lacy Lakeview Mayor Charles Wilson are not strangers meeting across a boardroom table during a routine city dispute between neighbors.

Wilson once played for Jaska at Connally Junior High, and both men grew up near Waco, where family ties, old memories, and local trust still run deep.

The project at the center

Infrakey bought 520 acres of unincorporated farmland near Ross for a proposed AI data center campus tied to the fast-growing tech economy and future computing needs.

The project carries an estimated $10 billion price tag and almost 1 gigawatt of power capacity, enough electricity to serve a midsize city if built.

Ross sits closest to the site

Ross has about 200 residents and sits beside the land planned for the AI campus, but the small town lacks taxing authority and major services.

Some homes and farms border the property, leaving neighbors worried that the closest community may have the least formal control over what happens next nearby.

Lacy Lakeview sees revenue

Lacy Lakeview sits about 7 miles south, yet Texas land rules may let the city annex the data center property and collect revenue for services.

Local leaders have discussed tax revenue that could reach $50 million a year, money that could change city services, budgets, and long-delayed projects for residents there.

A sewer issue shaped the talks

Wilson said Lacy Lakeview already faced a sewer capacity problem before Infrakey entered the local discussion with a possible business solution for cooling needs.

Engineers had estimated about $18 million for sewer expansion, while residents had already approved bonds for road and infrastructure repairs across the working-class city before public talks began with residents locally.

Water reuse became a selling point

Infrakey said treated wastewater from Lacy Lakeview could help cool servers at the planned AI campus instead of relying only on fresh water supplies.

The company described sewer reuse and closed-loop cooling as ways to reduce water demand, though documents still referenced several million gallons each day for operations if the campus opens near Ross.

Neighbors worry about daily impacts

Jaska said he does not oppose data centers in general, but he questions whether farmland near homes is the right place for the project near Ross.

Nearby residents have raised concerns about construction traffic, road wear, runoff, noise, and changes to the quiet rural setting that many local families carefully chose years earlier for their homes.

Little-known fact: The farming town of Ross, Texas, lacks basic police and sewer services despite directly bordering a massive $10 billion artificial intelligence campus.

Farmland adds an emotional layer

Sara Mynarcik inherited 79 acres beside the proposed site, where her son’s family lives, raises cattle, and remains close to longtime neighbors near Ross.

She worries that paving large areas could send more runoff toward White Rock Creek and nearby low-lying land during heavy rain and future storms near family property and nearby neighbors.

The city deal is not final

Lacy Lakeview approved a memorandum with Infrakey in December 2025, but the agreement does not guarantee final approval for the project or annexation plans.

The arrangement named Infrakey as an exclusive development partner for 12 months while both sides studied feasibility, financing, permits, public systems, next steps, costs, and legal questions before commitments were made.

Council members ask questions

New council member Amy Gage has questioned whether Lacy Lakeview is giving enough weight to Ross residents who live near the site and worry about impacts.

Council member Jonathan Olvera has said he remains undecided, noting that the possible financial upside deserves study before any final decision by city leaders after more public review with residents.

Doubts remain over viability

State Representative Pat Curry has questioned whether the project is as firm as supporters describe, or still depends on unresolved pieces involving money and infrastructure deals.

Infrakey rejected that view, pointing to engineering work, power deposits, site planning, and due diligence with a possible major hyperscale customer before construction begins publicly, according to the company.

How could Kentucky’s data center proposal affect residents? See why NDAs and public protections are becoming central to the debate.

A broader question for rural towns

The Ross and Lacy Lakeview dispute shows how AI infrastructure can test small-town rules, public budgets, farmland, water choices, and neighborly trust in real time.

As data centers spread across rural America, communities must weigh revenue, land use, water needs, road pressure, and who gets a voice in local decisions before projects reshape them in practice.

Wondering why Texas runoff elections are drawing attention? Learn how attorney general races could shape future legal battles.

Do you think local leaders should slow down major data center projects before deciding? Let us know in the comments.

This slideshow was made with AI assistance and human editing.

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