As concerns grow around the influx of data centers being built across Texas – including from the state’s governor – one company in Ellis County is trying to better its relationship with the community.
Compass Datacenters recently made a $15 million donation for a new animal shelter in Ellis County after the SPCA ended its contract there last year.
"One of the things we always try to do in communities is if there's a need for any infrastructure, we always want to kind of know about it as a long-term neighbor and so there was an immediate need," said Chris Crosby, founder and CEO of Compass Datacenters.
The county approved the donation last month. It comes as Compass is planning to build another facility in the town of Red Oak, where the Dallas Morning News reported the developer has been expanding its footprint in recent years.
Many residents questioned whether the donation was made with “strings attached.” At a commissioners meeting last month, Waxahachie resident Susie Hall said she understands the need for a shelter but didn’t agree with the county relying on a data center.
“I hate to think that we're going to be obligated to Compass because there will be something they're going to want in return," Hall said.
Ellis County Judge John Wray said the donation does not come with any obligations.
"There is no strings attached," Wray told KERA." We understand it, this is the first time our county to my knowledge has entered into a community benefits agreement with a gift of this nature."
Last week, Compass also donated a $12.6 million, 40,000-square-foot building to Texas State Technical College to expand the school’s Mechanical, Electrical, IT Data Center Pathway Program, which prepares students for careers in the data center industry.
"We’ve watched students come into this program with no background in the field and walk out ready to start careers that will support their families for decades,” Chancellor Mike Reeser said in a statement. “That’s what happens when a curriculum is built around what employers need. This new facility means we will be able to give even more people the same life-changing opportunity.”
Data centers have come under increasing scrutiny from elected officials and residents who say they are drains on water and energy and harm property values and quality of life.
Ellis County offered a tax abatement for the datacenters proposed 890-acre property, but the item was withdrawn before the June 23 commissioners meeting in response, Crosby said, to the “noise” surrounding it.
Even Gov. Greg Abbott, who in the past championed data centers, has in recent weeks called for tighter regulations on developments, including a ban on data centers in rural residential neighborhoods. He also wants to repeal data center tax exemptions.
“I made clear already: Any AI data center even thinking about coming here — they got to bring their own money, bring their own power, reuse their own water and do it in a way that reduces the cost of electricity for residents across our state,” he said in a statement last week, “We must eliminate the tax break they are getting. They must be responsible for funding their own projects here in Texas. We will get that done.”
Crosby welcomes new regulations but hopes that Abbott and his team continue to learn more about datacenters.
"I believe firmly that the governor and his staff should raise the bar for everyone that's doing data centers in Texas... And Texas should lead the market in that regard," Crosby said.
Avery Escamilla-Wendell is KERA’s news intern. Got a tip? Email Avery at aescamillawendell@kera.org. You can follow heron Instagram @by_avery_escamilla.
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