LUFKIN — A significant gathering took place at the Angelina County Commissioners Court on Tuesday, as numerous East Texans voiced their concerns over a proposed data center project along State Highway 103 East.
The initiative, put forth by AmpZ Champion Data Center Holdings from Denver, has sparked considerable controversy in Lufkin over recent months. Residents have raised alarms about potential pollution—ranging from light and sound to air and water—and expressed fears about the impact on local property values.
Angelina County Judge Keith Wright acknowledged these worries but clarified that the county lacks the authority to halt the development of proposed data centers. He noted that another facility on Highway 103 West had already passed significant regulatory hurdles without any input from the county. “We have no authority to implement a moratorium or stop any type of development in the county,” Wright stated. “Texas legislators have intentionally restricted what counties can do, driven by a lack of trust in our judgment.”
Wright urged residents to take their concerns directly to the lawmakers who have limited the county’s power.
The emergence of data center projects, including the one from AmpZ, has become a statewide phenomenon. While some communities have welcomed these facilities, others have engaged in legal struggles to prevent them. A recent analysis revealed that at least 248 data centers are planned throughout Texas, in addition to over 300 currently in operation, including one in nearby Nacogdoches.
Wright informed attendees that AmpZ is among five developers that have considered establishing data centers in Angelina County. While he expressed skepticism about the feasibility of all proposed projects, he acknowledged the potential for development.
If realized, the AmpZ project would encompass over 1,000 acres of land just outside Lufkin’s borders in Angelina County, with the possibility of future expansion. The proposed site was previously home to a papermill that employed nearly 600 workers before its closure in 2004, and it is classified as a heavy industrial area.
The project could potentially inject $1 billion in private investment, generate 500 construction jobs, and create 30 permanent positions upon completion, according to a fact sheet from the city of Lufkin. The center is expected to consume around 500 gallons of water per day, a volume comparable to that of three residential households, and is projected to have no impact on Lufkin’s water supply. Additionally, the city asserted that customer electricity bills would remain unaffected.
Upon learning in February about the potential data center, residents united to demand transparency from local government regarding the project. They expressed concerns about potential tax incentives, such as abatements, which would financially benefit the developers.
In mid-May, residents staged a rally prior to a city council meeting to express their opposition to the AmpZ project. However, their attempts to address the council were thwarted as the project was not included on the agenda, which restricted public comments to listed items. Despite repeated pleas from community members, the city had not added the data center discussion to any agenda, as reported by KLTV, a local television station.
In response, Angelina County commissioners made efforts to include the data center project on this month’s agenda, allowing community members an opportunity to share their views.
Residents urged the court to safeguard Angelina County. Joel Ojeda, a local resident, cited pollution as his primary concern and expressed confusion over the lack of transparency from local authorities. Anne Keehnen, hailing from Nacogdoches County, remarked that data centers are emerging across the nation, often disregarding the interests of the communities they inhabit.
“I urge each of you to reflect deeply, pray for the courage and political will to stand against forces that may not be easily understood, and to do what is right,” Keehnen implored.
Because the AmpZ project is proposed outside Lufkin’s city limits, the city will not receive any tax revenue from it, making Angelina County the point of contact for any tax-based incentives.
While Judge Wright cannot prevent the project, he noted that a potential tax abatement could provide him with some leverage to negotiate protective measures for local residents. He aims to implement various strategies to mitigate adverse effects, including noise restrictions, landscaping buffers, and bond requirements to ensure the company can cover any necessary cleanup costs. However, these negotiations could be disregarded by AmpZ if it chooses to proceed without accepting the terms of a tax abatement.
“It would be beneficial if the state could establish construction standards that facilities must adhere to,” Wright suggested. “Such measures would significantly alleviate some of the concerns.”
Shelley Tatum, a Democrat vying for the Texas House of Representatives district 9 seat, shared her memories of the papermill, recalling its unpleasant odors. She expressed her apprehension regarding the potential revival of industrial activity, even if it comes from a different sector. Tatum urged the court to reject any form of tax abatement, emphasizing that this would be the only way for the county to demonstrate its disapproval of the project. Additionally, she noted that property taxes would be the sole benefit for residents stemming from the operation.
“That data center is unlikely to be operational in ten years,” she stated. “Given the rapid pace of technological advancement, by the time a ten-year tax abatement concludes, that facility could be as vacant as the old papermill is today.”
