- Zydeco seeks rezoning in Hutto for a 225K SF data center, pivoting from planned apartments.
- The developer highlights reduced traffic and water usage as key benefits of the data centers project.
- Local residents have raised concerns about power consumption and possible effects on home values.
- Hutto is seeing increased data center activity as land and utilities attract industry investment.
Developer Switches Course
The Real Deal reports that Zydeco Development Corporation is pursuing approvals for a 225K SF data centers facility in Hutto, about 25 miles northeast of downtown Austin. The move replaces a previously planned 173-unit multifamily project on the 41-acre site at 450 Ed Schmidt Boulevard. The application seeks to rezone the land from residential to light industrial to accommodate the new vision.
Lower Impact and Community Feedback
Zydeco is promoting the data centers project as a lower-impact neighbor, citing reduced traffic compared to apartments, a closed-loop cooling system for lower water use, and acoustic barriers for noise control. Plans incorporate 300-foot buffers and five acres of green space. Despite these measures, over 30 nearby residents have submitted opposition letters, expressing concerns about power demand, water use, and property values. Such concerns reflect a broader conversation around data centers growth in the Austin area.
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Infrastructure and Regional Trends
The proposed data centers site is adjacent to an Oncor substation and transmission lines, providing access to critical power infrastructure. Zydeco will need to secure grid capacity and may support upgrades before the project proceeds. Data centers development continues to accelerate in the region, especially across northern Austin suburbs like Hutto. At least 30 projects totaling $25B have been tracked recently. This momentum mirrors rising capital flows into AI-driven data infrastructure, as operators race to secure power and proximity to demand hubs. Hutto’s land and utilities have attracted industry leaders including Colovore and Iron Mountain.
What’s Next
The Hutto City Council will have final say, with a vote scheduled for May. If approved, infrastructure work for the data centers facility could begin in 2027, further cementing the suburb’s role in the region’s ongoing data infrastructure expansion.
