San Angelo, Texas weighs major data center rezoning near neighborhood, infrastructure impacts

Melissa Palmer

December 30, 2025

San Angelo is courting Skybox Data Centers for a ~350-acre hyperscale-capable site, signaling another small city positioning itself in the AI data center buildout.

The city is negotiating a land sale at $50,000 per acre, which hints at serious, long-term infrastructure use, likely power- and land-intensive even if AI is not explicitly stated.

Rezoning from ranch/estate to light manufacturing and an industrial comprehensive plan is the key enabler, clearing the way for large-scale facilities, high-density racks, and associated substation and cooling buildouts.

The site sits near an existing neighborhood (PaulAnn), so community pushback around noise, traffic, and especially power and water use will be the main operational risk for any future GPU-heavy campus.

City leadership and economic development officials are framing this as a managed, transparent process, but the lack of a signed agreement means project scale, power draw, and specific AI workload focus are still unknown.

For AI infrastructure watchers, the signal is another secondary market lining up land and zoning for potential hyperscale and AI builds, with regulatory friction and local trust-building as the near-term gating factors.

The meeting details and local sourcing make this a useful link for tracking early-stage siting signals before a formal data center announcement.

Source: San Angelo public meeting set to discuss potential data center | ConchoValleyHomepage.com

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