A $10 billion data center proposed on farmland near Lacy Lakeview would need roughly 2 million gallons of water a day at full buildout — and as of now, exactly where that water comes from is still an open question. For landowners in unincorporated McLennan County, that uncertainty is the whole story. This guide explains what has been proposed, what remains unanswered, and what your options are as a Texas landowner living near it.
Big Data Damage is not against data centers or artificial intelligence. Our concern is narrower and older than any technology: when a heavy new neighbor draws down shared water, changes the character of rural land, and does it without answering basic questions, the people who live there deserve transparency and fair treatment. That is the lens we bring to the Waco-area project.
What is the $10 billion Waco-area data center project?
The project is a proposed data center campus backed by Infrakey on roughly 520 acres of farmland west of Elm Mott, in unincorporated McLennan County north of Lacy Lakeview. Reporting describes it as the largest industrial development in the county's history, with an investment figure around $10 billion. The land sits inside the City of Waco's extraterritorial jurisdiction (ETJ) — the ring of unincorporated land around a city where the city holds limited authority — and Infrakey has petitioned to have the land removed from that ETJ.
As of mid-2026 the project is proposed, not approved. Lacy Lakeview signed an early memorandum of understanding, but the plan still faces incomplete engineering studies, unanswered questions from Waco officials, and organized local opposition. You can read the detailed reporting from The Texas Tribune for the full timeline.
Where would the data center get its water?
The stated plan is recycled wastewater — a "sewer mining" approach that would capture and filter treated wastewater from the Lacy Lakeview and Waco systems rather than pump fresh groundwater. Infrakey has said it is not pursuing Trinity Aquifer groundwater for the project.
That plan is the source of the concern, not the reassurance it sounds like. The numbers are tight: full buildout is projected at about 2 million gallons per day, while Lacy Lakeview's wastewater system produces only a fraction of that. The feasibility study meant to prove the recycling plan works had not been completed as of spring 2026. When a promised "closed" water source cannot supply the full demand, the pressure to fall back on other supplies — surface water or groundwater — is exactly what landowners have reason to watch. For background on how groundwater stress plays out in this region, see our Trinity Aquifer data center threat guide.
Why are Waco-area residents fighting the project?
Residents are opposing the project mainly over water, transparency, and rural character — not a blanket objection to data centers. Since the plan surfaced, neighbors have gathered a petition with roughly 3,000 signatures, formed a community group, and held regular meetings to organize.
Their core objections track the open questions: how much water and power the campus will really use, where that water will come from if recycling falls short, and what 24/7 industrial operations will do to a quiet farming area's noise, traffic, and property values. State Rep. Pat Curry, R-Waco, whose district covers most of McLennan County, has pressed for transparency on the project's actual water and electricity use and has signaled support for legislation giving cities and counties clearer authority to reject development deals they find unfavorable. You can track that kind of legislation on our legislation tracker.
Does Waco have to supply water to the data center?
No — a city is not obligated to extend water service to a private development it has not agreed to serve, and Waco has not committed to supplying this project. Reporting indicates Waco was not formally approached to supply the water and that city officials said they lacked basic information about the plan. Infrakey's petition to pull the land out of Waco's ETJ would, if granted, reduce the city's oversight of what gets built there.
For landowners, the ETJ question matters. The ETJ is one of the few tools a nearby city has to influence development just outside its limits. Removing land from it can strip away a layer of review — subdivision rules, some infrastructure standards — that would otherwise apply.
Can McLennan County pause or stop the data center?
A Texas county's power to stop a private development outright is limited, but it is not zero. Counties have narrower zoning authority than cities, yet county commissioners can weigh in on road, drainage, and infrastructure agreements, and can adopt policies and requirements within their authority. Some Texas counties have tried temporary construction pauses to buy time to study a project's water and power demands — an approach that has been tested, and in at least one case reversed under legal pressure, elsewhere in the state.
Landowners also have levers that do not depend on the county:
- Groundwater permitting. If the project ever seeks groundwater, that would run through the Southern Trinity Groundwater Conservation District, whose proceedings are open to public participation. Our guide on how to protest a data center's water permit walks through the process.
- Public meetings. MOUs, ETJ releases, and service agreements move through city council and commissioners' court meetings that allow public comment.
- The record. Documenting your property's baseline conditions now preserves your position if harm occurs later — see what to do if your well runs dry.
What does the Waco data center mean legally for a Texas landowner?
For a Texas landowner, the legal questions center on water rights, nuisance, and property value — and most of them turn on facts that are not yet public. Texas follows the "rule of capture" for groundwater, which generally lets a landowner pump water beneath their own land, but pumping that harms a neighbor's supply, or a facility's noise and light that substantially interfere with the use and enjoyment of nearby property, can give rise to legal claims. A permanent nuisance can, in some cases, be measured by the lost market value of the affected property.
None of that is automatic, and none of it is legal advice. Whether any claim exists depends on what is actually built, how much water it draws and from where, and how it affects a specific property. The practical move today is to preserve information — water levels, well performance, photographs, and dates — so that if the project advances, your record is already built.
Frequently Asked Questions
How much water would the Waco data center use?
At full buildout, the proposed Infrakey campus is projected to need about 2 million gallons of water per day, with a smaller first phase in the range of a few hundred thousand gallons per day. The plan is to source it from recycled wastewater, but the feasibility of meeting that full demand had not been proven as of spring 2026.
Is the data center going to pump the Trinity Aquifer?
The company has said it is not pursuing Trinity Aquifer groundwater and plans to use recycled wastewater instead. That said, if wastewater recycling cannot meet demand, other supplies could come into play — which is why residents and officials continue to ask for firm answers. Any groundwater use would require approval from the Southern Trinity Groundwater Conservation District.
Has the Waco data center been approved?
No. As of mid-2026 the project is proposed, not approved. An early memorandum of understanding was signed with Lacy Lakeview, but key engineering studies were incomplete, Waco had not agreed to supply water, and the project faced organized local opposition and a pending request to remove the land from Waco's ETJ.
What can I do if I own land near the proposed site?
Start by documenting your property's current condition — well levels, water quality, photos, and dates. Attend city council and commissioners' court meetings where the project is discussed, and watch for any groundwater permit filings with the Southern Trinity Groundwater Conservation District, which you have the right to protest. Keeping a written record protects your position if harm later occurs.
Where can I follow official developments?
Local officials act through public meetings of the Lacy Lakeview and Waco city councils and the McLennan County Commissioners Court, and state-level water and power measures move through the Texas Legislature. Primary reporting on the project has come from The Texas Tribune and local Waco outlets. Statewide water planning data is published by the Texas Water Development Board.
Where this leaves McLennan County landowners
The Waco-area data center is still a proposal with more open questions than answers — and for landowners, those open questions are the point. A 2-million-gallon-a-day water plan that has not been shown to work, a request to shed city oversight, and unresolved questions about power and noise all deserve straight answers before anything is built. Knowing how the water, permitting, and property pieces fit together is how landowners make sure progress does not arrive at their expense.
This article is general information for Texas landowners, not legal advice. Every situation is different. If a data center may affect your water, land, or quiet enjoyment near Waco, you can request a free, confidential review of your situation.