Colorado-based CloudBurst Data Centers has received approval to develop a major data center campus outside San Antonio, Texas, after Guadalupe County commissioners voted through a USD 500 million tax abatement and a development agreement for the project.

The decision, reached at the Guadalupe Commissioners Court meeting on April 21, clears the way for one of the larger data center developments currently planned in the United States, though the vote passed by a margin of just one and drew significant pushback from local residents.

Project Scale and Investment

CloudBurst is planning to invest USD 14.5 billion to construct a campus comprising between 10 and 12 data center buildings on a 706-acre parcel of land located near the city of San Marcos, situated between Center Point Road, Francis Harris Lane, and Huber Road.

The total built area will span approximately 3 million square feet, or roughly 278,709 square meters. According to a presentation delivered at the April 21 Commissioners Court meeting, the campus will have a total capacity of 1.2 gigawatts upon completion.

That capacity will be developed across three phases, each delivering 400 megawatts, with the first phase commencing in 2026 and expected to reach completion by 2027.

The project straddles both Hays County and Guadalupe County. Construction activity at the site has already begun.

An initial 50-megawatt phase has broken ground and is scheduled to go live in the fourth quarter of 2026.

Infrastructure and Power Approach

CloudBurst has indicated that the campus will use closed-loop cooling systems for thermal management. On the power side, the company has said the campus will be supplied through behind-the-meter generation, meaning the facility will source electricity independently rather than drawing directly from the public grid in the conventional manner.

The company estimates the project will generate approximately USD 120 million in tax revenue annually for the local community and county, a figure that formed part of the case presented to commissioners alongside the request for the substantial tax abatement.

A Narrow Vote and Vocal Opposition

Despite the approval, the path to a green light was far from straightforward. Both the tax abatement and the development agreement were passed by a margin of just one vote on the Guadalupe Commissioners Court, a result that drew visible frustration from those present at the meeting.

The majority of attendees who addressed the court spoke against the proposal.

Opposition centered primarily on concerns about the environmental impact the campus could have on the surrounding area.

Some residents also raised worries about potential adverse health effects associated with living in proximity to a large-scale data center development.

Community resistance has extended beyond the meeting room. A petition opposing the data center had gathered more than 1,200 signatures at the time of reporting, reflecting the degree to which the project has mobilized local concern.

About CloudBurst Data Centers

CloudBurst Data Centers was founded in 2022 and is headquartered in Colorado. The company is not limiting its development activity to Texas.

CloudBurst is also currently developing a 200-megawatt campus in Oklahoma City, Oklahoma, indicating an expanding footprint in the central United States as demand for data center capacity continues to drive construction activity across the region.