Data Center Projects in Guadalupe County, Texas

Last verified: October 27, 2026 · 3 tracked projects · 6 tracked records

Overview

Texas Data Center Watch tracks three data center projects in Guadalupe County, including the CloudBurst San Marcos / Central Texas campus, which is split between Hays and Guadalupe counties (DCD). It is listed as under construction, with litigation pending. CloudBurst plans 1.2 GW in three 400 MW phases and 10–12 buildings, with a $14.5B investment and an initial 50 MW targeted for Q4 2026 (DCD).

On April 21, 2026, the Commissioners Court approved a development agreement and a $500M tax abatement, each by a one-vote margin (DCD). On July 20, a residents' coalition sued the county over its agreements with CloudBurst and with the Palomino Alpha data center. The suit alleges violations of the Open Meetings Act, the Tax Code and conflict-of-interest law (Community Impact).

Added since the Oct. 16 page update:

Palomino Alpha data center (near Zorn), About 0.4 mi southwest of SH 123 and FM 1979, near Zorn (TCEQ): listed as proposed; permits pending. Developer, per the tracker: Palomino Alpha, LLC (Austin) (guadalupetx.gov · ERCOT · Community Impact).
1000 Bolton Road data center (Marion), 1000 Bolton Road, Marion (former San Antonio Karting Complex): listed as proposed / in development. Developer, per the tracker: Legacy Investing (developer, per DCD); applicant SiteSpan, LLC (Lenexa, KS); property owner Ocotillo Capital Partners (City of Cibolo application) (cms2.revize.com · DCD · San Antonio Report).

Tracked projects

Project	Developer	Status	Capacity / size	Investment	Key dates	Sources
CloudBurst San Marcos / Central Texas campus, San Marcos / New Braunfels area	CloudBurst Data Centers	Under construction (litigation pending)	1.2 GW in three 400 MW phases, 10–12 buildings; initial 50 MW targeted Q4 2026 (DCD)	$14.5B planned (per DCD); Guadalupe County $500M tax abatement (per DCD)	Apr 21 2026 Guadalupe County approved development agreement and abatement, each by a one-vote margin (DCD) · Jul 2026 residents' coalition sued county (Open Meetings Act, Tax Code, conflict of interest)	DCD · Community Impact · KSAT
Palomino Alpha data center (near Zorn), About 0.4 mi southwest of SH 123 and FM 1979, near Zorn (TCEQ)	Palomino Alpha, LLC (Austin)	Proposed; permits pending	ERCOT lists five Alpha Power gas phases by Palomino Alpha, LLC, 400.1 MW each (2,000.5 MW total), projected 2028–2032 (official)	Not recorded	Mar 16 2026 TCEQ received Palomino Alpha's application for TPDES permit WQ0005514000 for a data center wastewater discharge (official) · Jul 2026 residents sued Guadalupe County over the CloudBurst and Palomino Alpha agreements (Community Impact)	guadalupetx.gov · ERCOT · Community Impact
1000 Bolton Road data center (Marion), 1000 Bolton Road, Marion (former San Antonio Karting Complex)	Legacy Investing (developer, per DCD); applicant SiteSpan, LLC (Lenexa, KS); property owner Ocotillo Capital Partners (City of Cibolo application)	Proposed / in development	50 MW, potential expansion to 150 MW (company, per DCD); 39 acres, 243,217 sq ft proposed (City of Cibolo application)	Not recorded	May 2026 site plan application PZ-2026-3-SP filed with the City of Cibolo: 39 acres, current use vacant go-kart track, proposed use data center, 243,217 sq ft (official · printed Jun 16 2026) · Oct 13 2026 TCEQ issued a construction stormwater authorization to Sitespan, LLC for the Bolton Road data center, later suspended under the Governor's pause (San Antonio Report/TPR, news) · Oct 15 2026 Legacy announced the 50 MW project, ready for service Q4 2027 (company, per DCD)	cms2.revize.com · DCD · San Antonio Report

Recorded benefits and concerns (CloudBurst San Marcos / Central Texas campus):

Concerns: Transparency and conflict-of-interest allegations (lawsuit)

Recorded benefits and concerns (Palomino Alpha data center (near Zorn)):

Concerns: Lawsuit over county agreements (news)

Recorded benefits and concerns (1000 Bolton Road data center (Marion)):

Concerns: Stormwater authorization suspended Oct 2026 under the state permit pause (news)

Sources for each project are linked in the table. Figures labeled "company" come from the developer.

Record timeline

Date	Type	What happened	Source
Oct 22, 2026	News	San Antonio Report: TCEQ stormwater permit issued Oct 13 to Sitespan, LLC for Bolton Road data center; agency says it is now suspended.	San Antonio Report
Oct 15, 2026	Company announcement	DCD: Legacy plans 50 MW data center at 1000 Bolton Rd, Marion, expandable to 150 MW; ready for service Q4 2027 (company).	DCD
Jul 20, 2026	Lawsuit	Residents' coalition sues Guadalupe County over CloudBurst and Palomino Alpha agreements (Open Meetings Act, Tax Code, conflict of interest).	Community Impact
Jun 16, 2026	City council	City of Cibolo site plan application PZ-2026-3-SP (SiteSpan, LLC): 1000 Bolton Road, 39 acres, proposed use data center, 243,217 sq ft.	cms2.revize.com
Apr 21, 2026	Tax abatement	Guadalupe County approves CloudBurst development agreement and $500M tax abatement (DCD).	DCD
Mar 16, 2026	TCEQ permit	TCEQ received Palomino Alpha, LLC's TPDES application WQ0005514000 for up to 500,000 gallons per day of treated wastewater from a data center near Zorn.	guadalupetx.gov

What's next

These dates come from the tracker. Texas Data Center Watch has no recorded upcoming Guadalupe County hearings or votes on data centers.

Q4 2026: CloudBurst's initial 50 MW is targeted to go live (DCD).
Statewide permit pause: Under the Governor's Sept. 21 order halting permits sought by data centers (Governor's office), TCEQ sent its Oct. 19 compliance letter: it says permits for infrastructure directly supporting data centers are paused, pending applications are being screened, and claimed authorizations are suspended where possible (TCEQ letter). The Texas Tribune reported Oct. 20 that TCEQ says stormwater permits flagged by Public Citizen were suspended (Texas Tribune). On Oct. 21 TCEQ posted that its STEERS e-filing system for automatic authorizations is temporarily shut down so staff can check whether applications relate to data centers (TCEQ STEERS notice); the Texas Tribune reports a spokesman said applications must be physically provided (Texas Tribune, Oct. 21). The tracker doesn't show whether any project in Guadalupe County has a pending TCEQ permit.

Frequently asked questions

What data center projects are tracked in Guadalupe County, Texas? Three: CloudBurst San Marcos / Central Texas campus in San Marcos / New Braunfels area, listed as under construction (litigation pending); Palomino Alpha data center (near Zorn) in About 0.4 mi southwest of SH 123 and FM 1979, near Zorn (TCEQ), listed as proposed; permits pending; 1000 Bolton Road data center (Marion) in 1000 Bolton Road, Marion (former San Antonio Karting Complex), listed as proposed / in development.

What is the Guadalupe County data center lawsuit about? A residents' coalition sued on July 20, 2026 over the county's agreements with CloudBurst and Palomino Alpha. The suit alleges violations of the Open Meetings Act, the Tax Code and conflict-of-interest law (Community Impact). These are allegations, not findings.

Did Guadalupe County give CloudBurst a tax break? Yes. On April 21, 2026, the county approved a development agreement and a $500M tax abatement, each by one vote (DCD).

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