Can a 5,000-Person Town Power a Data Center? | Giddings, Texas
Power, sites, and speed. 150 acres with rail and fiber, a new water boost, and a proposed 1.2 GW plant put Giddings on the data center map.
“Power first, sites second, speed always. Small towns can play in the data center game.”
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Last week’s EDO clips…
EPA clears air permit for Texas GulfLink deepwater export terminal (9/15/25) Air permit for the offshore terminal ~30 miles off Freeport enables VLCC loading with vapor control.
Midland County secures 320 acres for power-backed data center park (9/16/25)
FO Permian + HiVolt plan a multi-phase campus starting at 150 MW with behind-the-meter gas, scalable to multi-GW.
Samsung’s Taylor fab gets $250M from the state (9/17/25)
Texas awarded $250M (TSIF) to Samsung’s Taylor fab tied to $4.73B+ capex and ~2,000 jobs.
Texas names director for the Advanced Nuclear Office (9/18/25)
State leadership seated for TANO, keeping advanced nuclear manufacturing and supply chains on the radar.
Port Houston volumes steady; YTD up 5% (9/18/25)
370,430 TEUs in August (+1% YoY); 2.93M TEUs YTD (+5%). Resin exports remain strong.
San Antonio adopts a $4.04B FY25–26 budget (9/18/25)
Funds streets, sidewalks, lighting, and housing; helpful for site-readiness and infill stories.
WARN: Accelore (Amazon contractor) cutting 214 jobs in DFW (9/18/25)
214 roles affected across Fort Worth and Mesquite/Balch Springs.
Bass Pro Shops coming to the SH-191 corridor (Odessa/Midland) (9/19/25) 100,000 sf, 100+ jobs, opening along SH-191; new regional retail draw for the Permian.
Mission EDC backs new 21,500-sf RGV Padel Club (9/19/25)
$140k incentive over four years; 13 courts, ~52 jobs, project cost ~$2.7M.
Can a 5,000-Person Town Power a Data Center?
Issue: 10
B.L.U.F.: Giddings is a small city with strategic reach. The city’s FY2025 budget shows a 35.13 percent year-over-year rise in projected property-tax revenue, paired with concrete utility upgrades funded in part by a $1.8 million federal grant. That combination, plus shovel-ready land and freight rail, positions Giddings to capture value from growth spilling out of the Austin–Houston corridor.
A proposed 1.2-gigawatt natural-gas plant in northern Lee County, aimed at serving data-center loads and sited near the Matterhorn Express pipeline, would materially expand the local power platform if permitted and delivered on the developers’ 2028 timeline.
Giddings sits on US-290 between Austin and Houston and anchors Lee County. The city has leaned into infrastructure basics, including new water production capacity and corridor upgrades, while its economy diversifies beyond past oil cycles. The lens here is fiscal capacity plus site readiness, not speculative hype.
City Financial Profile
Giddings demonstrates disciplined budgeting with targeted capital moves that enable growth.
FY2025 budget projects a $936,067 increase in property-tax revenue, a 35.13% jump. Only about $88,279 of that is from new property, indicating most gains reflect higher existing valuations, not rate hikes.
Water production: a 2024 well project is pumping ~1,000 gpm today with designed capacity to 1,500 gpm, matching the output of three other city wells combined.
Federal investment: a $1.8M EDA award funds US-290 corridor improvements, including fiber expansion and up-sizing water lines along the highway.
Regional utilities: Lee County Water Supply Corporation has a $22M multi-county system upgrade program underway, signaling broader network modernization.
Local revenue mix: the city levies the standard 1.5% local sales tax and a Type B (4B) economic-development sales tax, with allocations tracked by the Texas Comptroller.
Takeaway: The city is using growth-driven revenue and outside dollars to add core capacity, especially water and corridor infrastructure. The tax base is rising primarily from valuation, not new construction alone, which argues for continued discipline on rate policy and development pacing.
Economic Drivers
Giddings’ base has diversified, with manufacturing and logistics supported by rail and highway access and a potential step-change in power availability.
Industrial anchors: Altman Plants (distribution and greenhouses), Kaemark (salon furnishings HQ/manufacturing), and Cargill/Nutrena (feed) operate locally, tying the city into national supply chains.
Small-business density: City materials show roughly 300+ businesses in town, with “nearly two-thirds” employing fewer than four people.
Workforce shed: Within a 30-mile radius, the EDC cites a labor pool exceeding 100,000, drawing from multiple counties.
Energy platform: the proposed 1.2-GW gas plant in Lee County is being advanced explicitly to serve data-center demand and is near the 42-inch Matterhorn Express pipeline. Target operations are cited around 2028, subject to permitting.
Freight and airfield: Capital Metro’s freight line runs between Giddings and Llano, and Giddings-Lee County Airport spans about 84 acres with a 4,000-foot runway for general aviation.
Takeaway: Existing anchors plus transport and potential power depth create optionality. For prospects that need affordable land, rail-adjacent operations, or future high-load power, Giddings can credibly enter the conversation.
Business Climate and Growth Indicators
The operating environment is intentionally pro-business with clear fees, ready sites, and active deal support.
Streamlined permitting: the city’s adopted fee schedule is simple and competitive, including per-square-foot building permit fees for residential and commercial projects.
County coordination: in unincorporated Lee County, structures over 100 square feet require permits, clarifying thresholds for projects outside city limits.
Shovel-ready land: the GEDC owns 150+ acres at the Giddings 290 Business Park with city water and sewer, three-phase electric, natural gas, and fiber.
Incentive toolkit: Giddings is a 4B city and promotes tailored local and state packages, with 380-style agreements available at the city’s discretion.
Downtown and corridor upgrades: EDA-funded water and fiber work along US-290 improves redevelopment potential, especially for mixed-use and commercial infill.
Takeaway: Costs and process are predictable, land is controlled locally, and infrastructure is catching up where it matters. For operators measuring time-to-permit and utility certainty, that reduces execution risk.
Opportunity Gaps
Three grounded opportunities that match today’s assets and near-term pipeline:
Professional Services Hub
Market Opportunity: A 100k+ regional labor shed and a manufacturing-heavy base create demand for fractional legal, accounting, QA, design, and technical services.
Need / Gap: Few scaled professional services firms are based locally, pushing routine B2B work to metro providers and increasing costs and lead times.
Specialty Hospitality & Road-Demand Concepts
Market Opportunity: US-290 through-traffic, heritage assets, and airport access support boutique lodging, event venues, and differentiated dining aimed at corridor travelers.
Need / Gap: Limited higher-end stay and destination dining options keep capture rates low for weekend and day-trip dollars.
Value-Added Manufacturing / Light Logistics
Market Opportunity: City-owned, utility-served land with rail freight and a regional airport can support food processing, packaging, and e-commerce fulfillment to Texas Triangle markets.
Need / Gap: Users seeking quick site control and utility certainty often bypass smaller markets; the 290 Business Park can shorten timelines.
Takeaway: These targets fit Giddings’ infrastructure and scale and do not depend on speculative megaprojects, while keeping upside open for power-intensive users if the Lee County plant proceeds.
Closing Summary
Giddings pairs a controllable land position with visible utility upgrades and a plausible path to more power. That mix reduces friction for small and mid-sized projects that often stall elsewhere.
The work now is pipeline curation: codify fast-track criteria, publish utility service maps and capacities, and pre-negotiate template incentives that reward speed and payroll.
Source links…
Available here: this linked Google Folder.
Social highlights…
Next Town: Schulenburg, Texas
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