DATA DEVELOPMENTS
Proposed CloudBurst Data Center causes community concern
CloudBurst Data Centers, Inc. has set its sights on developing an AI-focused data center on property located at 2955 Francis Harris Lane in New Braunfels. This data center is not related to the proposed data center at 904 Francis Harris Lane in San Marcos, which has been making its way through Planning and Zoning and City Council. The proposed data centers would be located on the same road and only 2.9 miles from each other. The proposed CloudBurst site is outside of San Marcos city limits as well as the Extra-Territorial Jurisdiction. The site is located in both Hays County and Guadalupe County.
CloudBurst Data Centers is a company based in Denver, Colo. They currently have not built a data center and plans for the Francis Harris Lane location to be its flagship site.
Proponents of data centers say that there are benefits to having one, Inc. luding tax revenue for the city or county as well as the potential to grow the technological industry in the area. A representative of the other data center in the area previously told the City Council that a “94-acre site in Bexar County that the valuation there is over $300 million.”
The Daily Record has made multiple attempts to reach out to Cloud-Burst for comments with no response.
“CloudBurst Data Centers designs, builds and operates purpose-built, scalable digital and energy infrastructure utilizing transition, green or renewable energy solutions. Our aim is to identify, acquire, develop and operate Next-Gen Data Center sites that meet our stringent performance and service criteria and are suitable for large wholesale or AI/HDC deployments,” according to the Cloudburst website. “Our mission is to design, build and operate premium, scalable, Next-Gen Data Centers powered by the most economic energy solutions and the smallest carbon footprint. It will ensure we are fastest to market without compromising on Value, Reliability, Innovation, Service, Efficiency, Sustainability and Security.”
The flagship location will be powered by an onsite, “behind-the-meter” natural gas-fired power plant.
“Our Flagship development is a Next-Gen, Data Center campus facility designed to focus primarily on AI/HDC clients with support for new technologies such as immersive cooling, high–density racks, etc,” according to Cloudburst’s website.
Hays County confirmed that a Flood Hazard Permit was filed on March 18. The Daily Record requested the document but has not yet received it.
According to a press release from Energy Transfer LP on February 10 of this year, CloudBurst and the energy company have entered into a long-term agreement to provide natural gas to the Central Texas development.
“The agreement calls for Energy Transfer’s Oasis Pipeline, LP to provide up to 450,000 MMBtu per day of firm natural gas supply to CloudBurst’s Next-Gen Data Center campus outside of San Marcos, subject to Cloud-Burst reaching a final investment decision with its customer,” according to the press release.
The proposed data center has led to community action, including protests at the Francis Harris Ln property and Tantra Coffee House.
“The proposed data centers in San Marcos have sparked controversy due to their potential strain on local resources, environmental effects and long-term sustainability,” said Texas State University Computer Science Professor Heena Rathore, PhD. “Data centers are facilities that house servers and networking equipment to support internet services and data storage, requiring large amounts of electricity, cooling and infrastructure.”
From water usage to energy strains, the concerns are rising.
“[Data centers] consume significant resources, including power from the grid — often supplemented by renewable energy, water for cooling — potentially millions of gallons annually, and land with strong connectivity. While some centers recycle or dispose old or faulty hardware, implement water recycling and repurpose excess heat, concerns remain about energy use, environmental impact and e-waste disposal,” Rathore said.
Water to the property is currently supplied by Crystal Clear Special Utility District.
“Water consumption is a huge concern. We’re in a major drought and there is no water in York Creek currently. The amount of water that these data centers use is legendary, we just don’t have it,” local resident Pam Parr said. “Crystal Clear Special Utility District services the houses and properties in this area, we alone have had a water main break under our property four times this year. The infrastructure is old, it breaks often and there is no way you can support the water demands this facility is likely to put upon it.”
Other concerns surround noise, light and air pollution as well as the impact on wildlife and the property values of homeowners adjacent to the proposed data center.
“So much wildlife has been forced into our community because of all the surrounding developments. We need to protect what little remains of the conservation land in San Marcos,” local resident Torrie Martin said.
According to the Cloud-Burst website construction on the data center is expected to start in Quarter Two of 2025 with completion of the first phase in Quarter Three 2026.
