Howdy,

Please be advised that a proposed Data Center project will in all likelihood be on the next agenda for September 11th. The proposed location is behind Costco, on Midtown Drive.

Talks have been ongoing for some time and we are now able to discuss it. After the agenda posts tomorrow I'll not have the ability to comment.

Pros

This agreement, if consummated, would constitute the largest single property tax payer in city history, by my research.

This agreement, if consummated, would constitute the largest utility payer in CS history. There would also be a substantial payment of sales tax/fees on the utility payments.

It would create 4,000 construction jobs and 45 jobs upon completion.

The need for Corporate Parkway would be abolished, and also the proposed connection to Pebble Creek Parkway. This constitutes an avoidance of $30m in capital expense.

The proposed payment for all but the entirety of the Midtown Business Park, approximately $30,000,000 would constitute the largest single municipal land sale in city history by my research. While for many of you it would never erase the memory of Chimney Hill or Macy's, objectivity demands the recognition that the proposed capital gain to the taxpayer would offset those two events approximately 3 times over.

There are other benefits to your city, but these are the main ones. Now for the Cons.

Cons

The proposed data center could essentially double the power consumption of the city.

It would vastly increase the amount of water consumed daily.

The original business park plat, consisting of numerous tracts, would've likely generated hundreds more jobs than the proposed use, over a significant amount of years after total buildout time.

The city would be left without a business park if we sell it all at once.

The site is less than a thousand feet from two single family residential neighborhoods and a proposed 55+ housing development.

Data Centers can be noisy. Once built, it can't be moved.

We do not know the end user (bitcoin, Meta, Google, Amazon) as the project appears to be speculative in nature as opposed to purpose built.

My research indicates the proposed buyer is a best-in-class electric utility contractor that builds and manages substations and overhead utilities servicing on a variety of commercial use projects, including data centers, but have never built a data center themselves.

The company was acquired by an investor last summer with the apparent intent to leverage their electrical utility capability, which is considerable, in a repurposing toward data centers.

By my research, and I could be wrong, the proposed buyer of the property may be acquiring the property for a "powered land flip." This is when land for a data center is acquired with limited encumbrances and necessary entitlements, electric energized to make it shovel ready, and then sold at a much higher price to a data center developer.

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That's about it. There's more, but those are my thoughts after months of looking at it and yes, headache inducing research. I warrant that I believe everything above to be accurate, but some of my presumptions based on that research could be wrong.

It is not uncommon for city councils to be less than fully in possession of detailed facts going into these. The contractual due diligence is a very long period of time, with options to extend. It is also a very secretive industry. The city attorney has built many protections into the proposed agreement, but it's also true we've never done one of these before. I think it's fair to characterize staff as excited about the potential, but also cautious in their approach.

Your thoughts and feedback on this are appreciated. Please keep it clean and please refrain from personally criticizing staff or my colleagues. I'm fair game. ;-)

Respectfully & Transparently to the Bosses

Yancy '95

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Cons

The proposed data center would essentially double the power consumption of the city.

It would vastly increase the amount of water consumed daily.

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When we have power shortages, will the data center shutdown so houses can have priority for AC and heat?

Also water shortages are front and center now.

• Define "vastly increase" the amount of water consumed daily? 30% more? 50% more?
• Where will the city source more water so we don't run out?

The Environmental and Energy Study Institute's data says 110 million gallons per year for a medium sized data center. They don't define what is medium. Might want to look at that water usage number a little more.

The water question is always important but it reminds me I'm not sure where we landed with Georgetown trying to basically buy our water. I'm sure I butchered that question but the is matters more with this project potentially happening.

Is there still a plan for retail development in the lot between Costco and Corporate Parkway? Or is that DOA? If still kicking, would this have any impact on that project?

The previously discussed water issues and noise issues and how that may impact enjoyment of the greenbelts and quality of life issues are other concerns.

So, was this in the long range plans when the city decided to sink two new water wells at a cost of $70M+? Or, will additional wells need to be drilled?

LOYAL AG said:

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The water question is always important but it reminds me I'm not sure where we landed with Georgetown trying to basically buy our water. I'm sure I butchered that question but the is matters more with this project potentially happening.

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From my understanding, the Cities and TAMU won their lawsuit, and the plan to ship water was curtailed.

Hornbeck said:

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So, was this in the long range plans when the city decided to sink two new water wells at a cost of $70M+? Or, will additional wells need to be drilled?

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Was not. Water capacity needs relative to this site are unknown at this time. We asked. Told due diligence needs to be completed.

Respectfully

Yancy '95

Bob Yancy said:

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Omperlodge said:

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The Environmental and Energy Study Institute's data says 110 million gallons per year for a medium sized data center. They don't define what is medium. Might want to look at that water usage number a little more.

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Yes source docs are all over the place

Respectfully

Yancy '95

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They are probably wanting to negotiate water rates. Ask them for their usage projections, buffer it a little, and then the rate should go up dramatically after the buffer.

So will water costs go up? And will electricity costs go up?

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Your questions are good ones. We had them too. That's the best answer I'm capable of giving you.

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If you can't answer those questions I think we should forego the data center; we should not receive firm figures AFTER a contract is signed.

I'd prefer water and power be for our regular citizens and businesses.

Seems it would have a very negative effect on the neighborhoods near it. This sounds more industrial than business like.

And do not let Wixon Valley Water go near that project. They can't even adequately supply the customers they have on their system.

So a couple of things on the water.

First our water, in this area, is around 200ppm in Na and Cl, which would make it fairly caustic for the cooling systems involved. The water should be at least de-ionized, which would consume even more energy.

Second. The cooling systems are all closed loops, so after the initial fill, all that is required is to keep the cooling system topped off.

Third. If the system is using water evaporation coolers, then our high humidity in this area would not be an advantage.

So all of this begs the question. Why put a data center here?

While I understand the "This is in College Station" argument, is this not something that would be better placed at the RELLIS campus where a data center is currently being built?

whoop1995 said:

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So will water costs go up? And will electricity costs go up?

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There is ZERO chance it won't go up.


Is the City this hard up for cash? That's my question. Stay out of the real estate business.

No thanks. There's a reason many communities are pushing back or banning these - they are absolute resource hogs that take far more than they give.

Bob
How is this good for the city other than the $30 million? But is the $30 million worth it?

The city cant negotiate the deal until after it is signed, is that really true? People are fearing water and power increases and there are no substantial jobs to the community?

What's the name of this company?

EliteElectric said:

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Because RELLIS property is likely WAY more expensive, I don't see RELLIS giving up land for another Data Center

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Actually… in addition to the 46,000 sq ft data center under construction, a second approx 230,000 sq ft data center has been announced and is in planning stages at RELLIS.

I would have to think this new proposed one would be private so for Google, Amazon etc. I think Midtown would be a terrible location smack in the middle of civilization.

https://chatgpt.com/share/68b9f43f-c0ec-8003-9410-b39b4215efe5

they will sell this community down the river for just about anything. I expect water to be a luxury after this goes through.

Well, if they get $30M and save $30M not expanding Pebble Creek Parkway, but then have to drill 2 MORE water wells at $75M+, at the end of the day, they wind up spending even more money.

I am assuming this is a bitcoin mining date center... (see below) Then what happens if these guys go belly up, bitcoins are exhausted (it's a thing) or quantum computers make the need for this amount of horsepower obsolete, what happens to the building? Will these guys go bankrupt, and wind up donating it to TAMU for the tax write off? (See the old Texas Instruments facility on Harvey). Then the tax revenue is $0, you don't have a business park, with the opportunity to bring in new jobs, etc.

I live in a neighborhood near here. I am 100% against it.

Tailgate88 said:

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EliteElectric said:

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Because RELLIS property is likely WAY more expensive, I don't see RELLIS giving up land for another Data Center

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Actually… in addition to the 46,000 sq ft data center under construction, a second approx 230,000 sq ft data center has been announced and is in planning stages at RELLIS.

I would have to think this new proposed one would be private so for Google, Amazon etc. I think Midtown would be a terrible location smack in the middle of civilization.

https://chatgpt.com/share/68b9f43f-c0ec-8003-9410-b39b4215efe5

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With those low figures for estimated jobs, I have to think this is a bitcoin mining operation.

Not good neighbors, not good jobs, but use tons and tons of water and electricity to line the pockets of some out of state investors or a private equity group. Not to mention the noise aspect.

Do we as citizens get to vote on this boondoggle?

dubi said:

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Do we as citizens get to vote on this boondoggle?

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That would be nice; having a say in something that will powerfully affect the availability and cost of water and energy.

But alas like the convention center this will be (yet another) thing folks in BCS don't want but will be shoved down their throats and pocketbooks.

Hornbeck said:

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What's the name of this company?

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I'm not at liberty to disclose that as we may still be under an NDA. I've asked about its expiration repeatedly, but have yet to receive an answer. In either event, it would have to expire tomorrow when the agenda is posted. We have to talk about it then.

That gave me a small window between the last meeting (when we were explicitly told it was ready for public consumption) and when it gets posted tomorrow to notify you.

I waited until today to be safe. We've been talking about this since the holidays and I have issues with the constraints on transparency imposed on us with the voters, to whom my clear and unambiguous primary fiduciary duty actually rests- which I'll not forget.

Once posted, we have a city policy constraining council communication on posted agenda items (see my signature block disclaimer on this platform). Now, we violate that policy pretty routinely when we go on the radio and are asked about a posted agenda item, and I don't mean just me. But I do try to honor it, even though that policy, on advice of officeholder counsel, may violate the Open Meetings Act itself.

The bottom line is the voters aren't waiting with bated breath for an agenda to get posted so they can go see if a massive development is going to be built next to their home. You entrust us, who you voted into office, to serve as that ambassador and to keep you informed.

As for your question: virtually everything I posted before is publicly discoverable save for "potential data center at Midtown." Once that is known, all else is readily available, with effort- except their name. To know the company name, check the agenda in the morning.

Thanks!

Respectfully

Yancy '95