On a unanimous 5-0 vote, the Taylor City Council has approved an annexation agreement covering the 664-acre Taylor Technology Campus east of the city, ending months of wrangling over a project that had drawn objections from neighbors worried about noise, water consumption, and nearby homes.

The deal, adopted at the council's meeting, advances the development, previously known as Project Mustang, on land between FM 112 and U.S. 79. Big Watt Digital and PowerHouse Data Centers are building the campus, which will contain data center facilities with computer servers alongside on-site power generation to meet its electricity needs.

How the Vote Came About

The project stalled last September when the developers pulled their original annexation and zoning applications after months of resident discussions over noise, water use and neighborhood effects.

Talks between the city and the companies continued after that withdrawal. As per the City of Taylor, the negotiations were aimed at ensuring the campus would be bound by regulatory standards covering noise, water use, setbacks and community benefits once inside city limits.

What the Deal Requires on Water

The agreement requires the site to be designed and built with a closed loop cooling system using reclaimed water, with an initial fill volume of 1.575 million gallons for the entire site.

Potable city water is permitted only for restrooms, break rooms and similar purposes, and may not be used to fill the HVAC system or for evaporative cooling except in limited circumstances spelled out in the agreement, such as a temporary emergency approved in writing by the city manager.

The developers must also fund wastewater infrastructure improvements to raise effluent quality, cut discharges into Mustang Creek and preserve potable water for residents by serving future industrial demand with reclaimed water.

As part of these commitments, they will withdraw their TCEQ wastewater discharge permit application. Wastewater must be designed and permitted under Chapter 29 of the city's Code of Ordinances, including industrial pretreatment requirements, and the developers will pay for all utility lines linking the site to city systems.

Noise, Lighting and Stormwater Standards

An acoustic study at the property lines will establish a pre-development noise baseline, and development noise cannot exceed the greater of 65 decibels (dBA) or that baseline.

Had the land remained unannexed, only the state's 85 dBA limit would apply, with no additional county rules. Air quality enforcement falls to the Texas Commission on Environmental Quality either way.

Lighting must comply with the city's Dark Skies requirements, which would not have applied without annexation.

Stormwater systems must meet the city's Engineering Manual, and the developer must make a good-faith effort to reduce pre-development stormwater flows onto neighboring properties.

Buffers, Setbacks and On-Site Power

The agreement sets detailed setbacks: buildings must sit at least 300 feet from the north, east and west property lines. Along the south line, data centers, power generation facilities and battery storage must be at least 700 feet from the boundary, with accessory structures at least 500 feet away.

A permanent landscaped buffer of at least 400 feet, including landscaping and earthen berms at least 6 feet tall, must run along the south property line near FM 112. The campus will generate its own power on site and can sell electricity back to the grid when output exceeds facility needs.

Opposition and a Blocked Petition

Some residents, joined by the advocacy group Halt Taylor Data Centers, argued the campus could overindustrialize the area and strain local water supplies and infrastructure.

On the same evening as the annexation vote, a packed and emotional crowd filled Taylor City Hall after city leaders announced that a citizen-led petition seeking to restrict future data center development cannot proceed through the initiative process under Texas law.

Tax Revenue and Community Benefits

The plan commits USD 28.2 million to benefit city programs, Taylor Independent School District and local nonprofits.

City officials estimate the project could produce USD 1.38 billion in gross tax revenue for the city over the next 20 years.

The Developers Respond

After the vote, Big Watt Digital and PowerHouse Data Centers issued a joint statement welcoming the unanimous approval of the Taylor Technology Campus.

The companies said the decision reflects their commitment to a responsibly planned campus aligned with Governor Abbott's data center standards, and that responsible development means being a good neighbor and an engaged community partner.

They said the campus is designed to grow the city's tax base, create workforce opportunities and support quality-of-life improvements, citing the USD 28.2 million in community commitments, including ongoing support for nonprofits, schools and community initiatives.

The developers thanked the City of Taylor and its elected leaders, said they look forward to working collaboratively with the community as the campus progresses, and expressed excitement about calling Taylor, Texas, home.

With the unanimous vote, annexation brings the property within city limits, giving Taylor authority to enforce the new requirements and oversee the development, and concludes a prolonged period of uncertainty surrounding the project.