Texas data center plan carries $19.6 billion in leases as residents push back

A proposed Hut 8 data center development in Calallen, Texas, is drawing renewed scrutiny after newly disclosed figures showed that the Beacon Point plan — which could become one of the largest data centers in Texas — is tied to $19.6 billion in commitments across two leases.

Here's what to know

In his video on the project, neighborhood reporter Jordan Benavidez (@jordanbenavidestv) described it as "A lease worth more than what many small countries make in a year."

@jordanbenavidestv A lease worth more than what many small countries make in a year. New info on Hut 8's massive data center plan for the Coastal Bend. #datacenter #hut8 #calallen #ai ♬ original sound - Jordan Benavides

Newly revealed lease details highlight the scale of Hut 8's Beacon Point proposal in Calallen, which could rank among the largest data centers in Texas.

The project was discussed at a Calallen Independent School District board meeting, where company representatives shared information and addressed community questions, according to Benavidez's KRIS 6 News video.

During public comment, residents focused on the site's proximity to a school and raised questions about noise, electricity use, and water demand. One resident said, "There's been a lot of noise pollution, which is causing migraines and headaches within residents around here within at least three miles."

Similar doubts appeared online as well. One commenter wrote, "Keep in mind multiple data centers have made promises that they've broken almost immediately once they've been established."

A nearly $20 billion lease value is an unusually visible figure for a major data center project, since that level of financial detail is not always made public so clearly.

More background

Data centers are increasingly at the center of debates over artificial intelligence, energy demand, and water use.

AI tools can provide meaningful benefits, including helping utilities balance electricity demand, improving building efficiency, and supporting cleaner energy systems. However, the infrastructure behind AI also requires enormous computing power, which can strain power grids, consume large volumes of water for cooling, and raise concerns about higher utility costs, security risks, and other unintended consequences.

For Calallen residents, those issues have taken a local form, with concerns centering on construction impacts, overnight noise, strain on infrastructure, and potential costs to households.

One commenter put that concern plainly: "im gonna be honest here. the biggest issues and concerns regarding the construction of data centers are the potential rise in the cost of utilities being footed to residents rather than the center, as well as water usage and noise pollution."

The proposed site's proximity to both homes and a school appears to be adding to the concern. Another resident highlighted in the video speaking at the meeting said, "I don't care if it's by my, my house, but by a grade school, unless y'all plan on building another, another school to replace this one."

What's being done?

During the presentation, Hut 8 representatives said the company had been looking at ways to limit the project's impact on the surrounding area.

According to company spokespeople, Hut 8 had planned to use its own water, prepaid electricity costs, and examined building-design strategies aimed at lowering noise.

That has not eased public concern. Several residents appear to want more than assurances, especially given the footprint a large data center can have once it begins operating.

For now, Superintendent Scott Halfley of Calallen ISD is urging residents to continue informing themselves about the proposal.

As Halfley put it, "We're learning right alongside everyone. I think what we want to do as a school district is just make sure that people know that the information is there, that if you go to the Hut 8 of the Beacon Point website, you can see the information that was presented tonight."

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