- Dallas-based Skybox Datacenters secured rezoning for its 140-acre Project Sequel in Hutto and plans to close on the property in February, partnering with Prologis on a build-to-suit industrial plan.
- Gov. Greg Abbott directed ERCOT to effectively freeze new data center grid connections, so Skybox will not know how much power it can secure until 2028 and expects delays.
- The freeze shows how Texas power policy can stall data center projects even after land and zoning are in place, pushing developers toward industrial uses on the same sites.
Dallas-based Skybox Datacenters won rezoning for its 140-acre Project Sequel in the Austin suburb of Hutto, but a Hutto data center now faces delays over grid access, according to The Real Deal, citing the Austin Business Journal.
The developer plans to close on the property in February.
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Industrial Plan With a Data Center Option
Skybox is working with Prologis, the world’s largest industrial landlord, and aims to market the site as a build-to-suit industrial development. Chief development officer Haynes Strader said the company will pursue enough power for two data centers that would use about half the land.
Project Sequel hopes to keep the option to build data centers in the future.
The Power Problem
Over the summer, Gov. Greg Abbott directed ERCOT to effectively freeze potential data center connections to the state grid. ERCOT supplies about 90% of Texas and had not finished reviewing its first batch of connection requests when the directive came.
Under the current rules, Skybox will not know how much power capacity it can get until 2028. The data center portion now looks likely to slip, as the approval process remains uncertain.
Zooming Out
The move marks a shift for Abbott as he seeks a record fourth term as governor. CRE Daily has tracked how Abbott targets data centers even as Texas pursues the top spot for the asset class.
Skybox’s earlier Hutto project, the 150-acre PowerCampus Austin, has leased its four planned buildings to tenants including Google.
Why It Matters
Land, zoning and tenant demand no longer guarantee a data center in Texas. Power allocation is the gating item, and the timeline is now set by state regulators.
The split view among builders is covered in CRE Daily’s report on how the Texas data center pause has divided developers.
What’s Next
Watch the February closing and ERCOT’s review of connection requests. Until capacity is clear, the Prologis industrial plan is the likelier path for the site.
