The rural town of Ross and the suburban community of Lacy Lakeview, both located outside Waco, Texas, are embroiled in a contentious debate over a proposed $10 billion AI data center project. The development, spearheaded by Infrakey, aims to establish a campus on a 520-acre plot near Ross, with a power capacity nearing 1 gigawatt—enough to energize a midsize city.
Municipal Law Widens Divide
Texas municipal law has amplified tensions between the two towns. Ross, with its modest population of 200 and no taxing authority, sits adjacent to the project site, exposing residents to its industrial footprint. Meanwhile, Lacy Lakeview, positioned to legally annex the land, stands to gain up to $50 million annually in taxes. This disparity has sparked conflicts over who benefits and who bears the burdens of the development.
‘The burdens and benefits can fall unequally,’ said Jim Jaska, Ross’s 80-year-old mayor, who finds himself at odds with former student Charles Wilson, mayor of Lacy Lakeview.
National Implications Amid AI Infrastructure Boom
This local dispute mirrors a broader national trend. Across the South and Midwest, rural communities are grappling with the rapid expansion of AI infrastructure. Developers are racing to secure land, power, and water for massive data centers, reshaping regions and igniting debates over governance and environmental impact. While Washington and Silicon Valley prioritize AI leadership to counter China, backlash is mounting in affected communities.
In Texas, Republican Governor Greg Abbott has called for tighter oversight of data center development, urging lawmakers to reconsider financial incentives that critics argue disproportionately favor large tech companies. As rural residents nationwide face similar challenges, the question remains: How can local officials and communities ensure equitable outcomes when pitted against the world’s most influential corporations?