Project Mustang

Taylor Technology Campus · Big Watt Digital and PowerHouse · FM 112, Taylor

A 664-acre campus for up to 1 GW of data centers on its own 750 MW gas plant at the edge of Taylor. After the developers threatened to build outside city rules, Taylor annexed it on terms that require closed-loop cooling on non-potable water.

Aug 2026Taylor P&Z votes 6-2 to table the zoning for90 days Sep 2026Developers withdraw annexation and say theywill build in the county Sep 21, 2026State orders TCEQ to pause data centerpermits Oct 8, 2026Council approves 5-0 a 20-year annexationand development agreement H1 2028First power targeted
Land
664 acres
Data center load
Up to 1 GW
On-site gas
750 MW
First phase
500 MW
First power
H1 2028
Sector
AI and data centers

Overview

Up to 1 GW on Its Own Gas

Project Mustang, now called the Taylor Technology Campus, is a data center campus on 664 acres of former farmland at 3301 FM 112, between FM 112 and US 79 at the eastern edge of Taylor. Big Watt Digital of South Dakota and PowerHouse Data Centers of Virginia, through PH Digital, plan up to 1 GW of data center load on a 750 MW natural gas plant on site, with a 500 MW first phase and first power targeted for the first half of 2028.

It is the fourth Taylor-area data center on the US 79 corridor and the only one that brings its own generation. PowerHouse is also the pad operator inside Tract Caldwell Valley on the I-35 South corridor.

Campus profile
DevelopersBig Watt Digital (South Dakota) and PowerHouse Data Centers through PH Digital (Virginia)
Location3301 FM 112, east of Taylor, Williamson County
Land664 acres of former farmland
CapacityUp to 1 GW of data center load; 500 MW first phase
Power750 MW on-site natural gas plant, behind the meter
CoolingClosed-loop, on non-potable water, required by the city agreement
Community commitment$28.2M
City agreement20-year annexation and development agreement, approved 5-0 on October 8, 2026
First powerFirst half of 2028 (target)

The annexation fight

From Walkout to Agreement

The site is in Taylor's extraterritorial jurisdiction, outside city limits, where the city says it has no authority to regulate a project. The developers asked to be annexed, which would let Taylor set binding rules on noise, setbacks, air quality, water and stormwater. After a packed August 2026 hearing, the Planning and Zoning Commission voted 6-2 to table the zoning for 90 days while it wrote data center guidelines.

In early September the developers withdrew the annexation request and said they would build in unincorporated Williamson County instead. The city came back to the table: on October 8 the council voted 5-0 for a 20-year annexation and development agreement that requires closed-loop cooling on non-potable water, with $28.2M in developer commitments to the community. The city projects $1.38B in tax revenue over the 20 years.

The state pause

The Gas Plant Needs a State Permit

Annexation settles the city's role, not the state's. On September 21, 2026 Governor Abbott ordered TCEQ to pause air and water permits for data centers and the power plants that serve them until ERCOT finishes its review of large loads, expected in December. The 750 MW gas plant needs an air permit, so Mustang is the US 79 campus most exposed to the pause. Public Citizen and FracTracker reported on October 19 that TCEQ has kept processing some data center permits; see Texas Data Center Moratorium and Behind-the-Meter Power.

Record

Dataset Record

Sources
City of Taylor (August to October 2026), Data Center Dynamics, Bisnow, CBS Austin, Texas Public Radio, 404 Media
Last verified
Q4 2026