In the rural expanses of Hays County, Texas, a new chapter in the ongoing saga of development versus community sentiment unfolds. Construction has commenced on a contentious AI data center, spearheaded by CloudBurst Data Centers, despite fervent opposition from local residents.

Initially announced in February, CloudBurst’s plans were laid out with a timeline suggesting an early start to construction this year. During a county meeting in May, Hays County Judge Ruben Beccera clarified that the commissioners’ court held limited authority over developments on private land, a point that has since become a focal issue for the community.

Jennifer Lindsey, a long-time resident whose family has called the area home since the mid-1990s, voiced a bittersweet sentiment regarding the project’s delays. “We managed to push back their timeline by several months,” she remarked. “The groundbreaking was originally slated for April 2025, but here we are in November 2025. We’re proud of that delay, but they have their permits, and it seems they can proceed,” she concluded.

The Lindsey family, alongside environmental activists, has been actively opposing CloudBurst’s plans since they learned of multiple proposed data centers in the region earlier this year. Their efforts to halt the development have been persistent but ultimately faced a significant setback.

Wednesday marked a poignant moment for opponents of the project as they witnessed the unmistakable signs of progress. “Today, we saw a bulldozer at the site, tents, and chairs – it was clearly a groundbreaking ceremony,” Lindsey recounted, her voice tinged with emotion. “It’s devastating,” she expressed, her words underscored by tears.

“Today, specifically, there was a bulldozer at one location with a tent, and then there was a tent and chairs set up. We determined it was a groundbreaking ceremony,” Lindsey said. “It’s devastating,” she added through tears. 

As the company held its ceremony, around a dozen protesters, including the Lindsey family, banged pots and drums while chanting in opposition. 

“We came out here to not let them enjoy themselves,” Lindsey said. “That’s the right we have – that’s what we’re given as citizens – to come out and be on public lands and show them that we aren’t happy, that they are taking something really precious away from us.”

“From the outside, it looks like they’re just really happy with themselves,” Lindsey continued. “This isn’t a wealthy area – all these people are working class,” Lindsey added. “You see luxury cars pulling in people with money. It’s hard not to judge.”

CloudBurst had not responded to our request for comment. If it does, this story will be updated. 

CloudBurst presentation in May

Water is used to cool down equipment within data centers. A large data center can use over 500,000 gallons of water a day, the equivalent of over 4,000 people’s daily water use, according to the University of Illinois Urbana-Champaign.

At a Hays County Commissioners Court meeting in May, CloudBurst said it would recycle its water and attempted to dispel concerns about tainted water leaking into streams. At that time, CloudBust said it had not yet determined how much water the center would use. 

“I have not seen any studies that show us that there are massive leaks. And even if there is a leak, it leaks into the data center, it doesn’t leak out into the field,” Cynthia Thompson, an executive chairperson with CloudBurst, said in May.

According to the presentation’s backup documents, the company would attempt to use solar panels, low-level lighting and minimal water. The company said it would not build in a floodplain and would keep noise to a minimum. Thompson said the company is committed to preserving wildlife. 

A key part of Thompson’s presentation was education on the need for more data centers.

 “When you Google someone, when you take a picture, all that goes in the cloud, and so you need more data center space to hold that,” Thompson said. “We’re fulfilling a need in a community.”

“I don’t think there’s ever a perfect place when you’re building a data center,” she continued. “Never will you have 100% of the people happy.”

Economist Vance Ginn, founder of Ginn Economic Consulting, said projects like the CloudBurst data center come with both pros and cons.

“At the end of the day, there are tradeoffs associated with [data centers], both negative and positive, and we’ve got to understand them,” Ginn said. “If this is something that’s coming in close to their home, of course, it’s natural to have those concerns.”

Still, he believes these projects will ultimately benefit the state and the localities where they are built. Locally, he said, a potential boon could be more tax revenue, which could prevent property taxes from hiking.

“I think these are going to be net benefits for Texas, for the economy, and really for people to find more jobs in the future,” Ginn continued.