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Taylor, Texas approves an annexation agreement for the 664-acre Taylor Technology Campus, binding the data center and on-site power project to reclaimed water cooling and noise limits

The Taylor City Council voted unanimously on October 8, 2026 to approve a development agreement with Big Watt Digital and PowerHouse Data Centers that brings the 664-acre Taylor Technology Campus, formerly Project Mustang, into city limits, according to local news reports. The campus plan includes data center facilities and on-site power generation. Under the city's published terms, the developers must use closed loop cooling with reclaimed water, keep data centers and power generation at least 700 feet from the south property line, hold noise to the greater of 65 dBA or the pre-development level, and commit $28.2 million to community investments. The city projects $1.38 billion in gross tax revenue over 20 years and says the developers did not request tax abatements with this agreement. [Source 1] [Source 2] [Source 3]

Taylor, Texas approves an annexation agreement for the 664-acre Taylor Technology Campus, binding the data center and on-site power project to reclaimed water cooling and noise limits
All news & analysisDevelopment & PowerBetween FM 112 and U.S. 79, east of Taylor, Williamson County, TexasApproved. Taylor City Council approved a development agreement for annexation and development conditions on October 8, 2026, as reported by KUT and CBS Austin. Not established: tenant, power capacity, construction or availability. As of October 9, 2026.

Disclosed terms

Site
664 acres; data center facilities and on-site power generation [1]
Cooling
Closed loop cooling using reclaimed water [1]
South setback
700 feet for data centers, power generation and battery storage [1]
Noise
Greater of 65 dBA or pre-development level [1]
Community payments
$28.2 million [1]
Council vote
Approved unanimously, October 8, 2026 (reported) [3]

The disclosure and our analysis

Evidence dates

Evidence: City of Taylor news release on the proposed development agreement, posted October 2, 2026. Council approval on October 8, 2026, as reported by KUT and CBS Austin on October 9, 2026. We did not review the signed agreement or official minutes.

What was approved

**The vote:** KUT and CBS Austin report that the council unanimously approved the agreement at its Thursday, October 8 meeting. CBS Austin reports the vote as 5 to 0. Without an agreement, the city says the land would remain in unincorporated Williamson County, where it has no zoning authority. [Source 2] [Source 3] [Source 1]

**The project:** The city describes Taylor Technology Campus as a 664-acre project that includes data center facilities and on-site power generation, developed by Big Watt Digital and PowerHouse Data Centers. The developers had withdrawn their earlier annexation and zoning application in September. [Source 1]

**Water:** The site must use a closed loop cooling system with reclaimed water. Potable water may not be used for filling HVAC systems or evaporative cooling except in limited cases the city lists, including a written emergency approval or a delay or interruption in the city's reclaimed water service. The developers will fund utility connections and wastewater improvements and withdraw their state wastewater discharge permit application. [Source 1]

**Setbacks and buffers:** Buildings must be at least 300 feet from the north, east and west property lines. Along the south line, data centers, power generation and battery storage must be at least 700 feet away, and accessory structures at least 500 feet. A buffer of at least 400 feet with landscaping and berms applies near FM 112. [Source 1]

**Noise, lighting and generators:** Noise may not exceed the greater of 65 dBA or the measured pre-development level at the property lines. Lighting must meet the city's dark skies rules. Backup generator testing is limited to weekdays from 8 a.m. to 5 p.m. [Source 1]

**Payments:** The developers commit $28.2 million, including $13 million to the city and about $12.7 million for Taylor ISD programs, scholarships and workforce training, plus nonprofit grants. [Source 1]

**Tax:** The city projects $1.38 billion in gross tax revenue over 20 years and says the developers are not asking for tax abatements with this agreement. The city separately posted a notice of consideration of a tax abatement agreement on the same day; we did not confirm whether it relates to this project. [Source 1]

Buyer analysis

This is our analysis.

**This is an approval of terms, not capacity.** The council approved a development agreement and annexation path. The reviewed city release gives no megawatt figure for IT load, utility service or on-site generation, and no tenant, construction start or delivery date. Treat the campus as approved for annexation under conditions, not as available or under construction.

**On-site generation is part of the plan.** The city's terms address power generation and battery storage siting and generator use. That signals a project designed to rely at least partly on its own power, which matters in ERCOT where large load interconnection timing is now a major schedule risk.

**The conditions are a template.** Reclaimed water cooling, 700 foot setbacks for power generation and a 65 dBA cap are concrete, enforceable terms. Buyers evaluating Austin area sites should expect similar conditions in other Central Texas negotiations and ask whether a site's design already meets them.

What remains unknown

The reviewed sources do not disclose the campus's IT load, utility service capacity or on-site generation capacity, its fuel type, tenants, construction timeline or delivery dates. We did not review the signed agreement, official minutes, or any remaining zoning steps. Some local reports cite a 500 MW full buildout figure; we did not find it in the city's release and do not rely on it.

Sources

  1. City of Taylor, news release · Published 2026-10-02
  2. KUT · Published 2026-10-09
  3. CBS Austin · Published 2026-10-09

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