A proposed data center development near Maxwell is moving forward after Caldwell County Commissioners approved a Chapter 312 tax abatement agreement tied to what could become one of the largest private investment projects in county history.

The planned facility, expected to be operated by Edged Energy, is slated for approximately 330 acres off State Highway 142 near the LCRA Timmerman Power Plant in the Maxwell area. County documents connected to the agreement reference total projected improvements of roughly $7.3 billion, while a separate state construction filing lists an estimated $2.8 billion construction phase tied to a nearly 870,000-square-foot data center building.

As Central Texas continues experiencing rapid industrial and population growth, county leaders said the agreement is less about waiving taxes altogether and more about protecting long-term county finances under Texas property tax laws while managing the impact of unusually large industrial projects.

Why Caldwell County Officials Approved the Agreement

Commissioners approved the Chapter 312 agreement between Caldwell County and EDC Austin LLC during a recent meeting.

Chapter 312 agreements are commonly used in Texas to attract large industrial developments while helping local governments manage how major increases in taxable value affect annual budgets and tax rates.

Under the agreement, increases in the property’s taxable value could be exempted from taxation for up to 10 years. During that period, the property owner would instead make payments in lieu of taxes, commonly known as PILOT payments.

County officials said the arrangement is intended to help stabilize county revenue while shifting more of the tax burden toward industrial development rather than homeowners.

The issue centers largely on Texas laws limiting how much new revenue counties can collect annually above the “no-new-revenue” rate, generally capped at 3.5% without voter approval.

According to information presented during the meeting, Caldwell County currently has about $9 billion in total value on its tax roll. Officials warned that if multiple multi-billion-dollar data center projects were added directly to the tax base at once, the county could be forced to significantly lower its tax rate under state law.

County representatives said that scenario could substantially reduce county revenue for at least a year, potentially requiring the use of reserves to continue funding salaries and county operations.

Development Agreement Discussion Delayed

While commissioners approved the tax abatement agreement, they voted earlier in the meeting to table discussion and action on a separate development agreement between Caldwell County and EDC Austin LLC.

County officials noted that Texas counties have limited authority over development compared to cities. Caldwell County does not control utility service to the site and lacks zoning authority that municipalities use to regulate land use.

Environmental permitting for projects like data centers also falls largely under state oversight through the Texas Commission on Environmental Quality, which regulates issues including air permits, emergency generator systems, onsite power generation, and water usage.

As data centers continue expanding across Texas to support artificial intelligence and cloud computing demand, communities across the state have increasingly raised questions about electrical demand, infrastructure strain, traffic impacts, and long-term water use.

What Is Planned Near Maxwell

Project filings identify the development as “Edged Energy-Austin,” with a listed address of 11255 Highway 142 in Maxwell.

According to state construction filings, work is expected to begin in June 2026, with completion targeted for June 2028.

The privately funded project is expected to include:

• An approximately 869,684-square-foot single-story data center building
• Data halls and administrative areas
• Storage and business occupancy space
• A maximum parapet height of roughly 35 feet

The state filing lists the initial construction phase at an estimated $2.8 billion. County materials tied to the broader tax agreement reference approximately $7.3 billion in projected total improvements associated with the overall development.

It remains unclear whether the project will ultimately include additional phases beyond the initial building outlined in the state filing.

Edged Energy Expanding Nationwide

Edged Energy, a subsidiary of Endeavour, describes itself as a developer and operator of ultra-efficient data centers focused on artificial intelligence and large-scale cloud computing infrastructure.

The company says its facilities are designed around waterless cooling technology intended to significantly reduce water consumption traditionally associated with data center operations.

Edged is currently expanding across several North American markets, including Dallas, Phoenix, Chicago, Kansas City, Columbus, Des Moines, and Atlanta.

In an April 2026 announcement, the company celebrated a construction milestone on a 42-megawatt AI-focused data center in Atlanta that it says will use zero water for cooling while supporting high-density computing workloads.

The company also says it is developing technologies tied to hydrogen-powered backup systems, renewable microgrids, advanced cooling systems, and water purification.

Broader Growth Questions Continue Across Central Texas

The Maxwell area has experienced increasing development pressure in recent years as growth continues along the Austin-San Antonio corridor.

Large industrial projects often bring secondary impacts communities monitor closely, including roadway improvements, emergency response planning, utility coordination, truck traffic, and long-term land use changes.

Commissioners also addressed several other county matters during the meeting, including:

• Leaving the county burn ban in place
• Authorizing discussions regarding roadway access to the Caldwell County Evacuation Center
• Approving a short-form plat for an Allegiance Regional Water Authority booster pump station near SH 142 and Church Street in Maxwell

As planning tied to the data center project advances, additional discussions are expected regarding infrastructure coordination, permitting, and future agreements connected to the site.

For residents in Maxwell and throughout Caldwell County, the proposed development represents another example of how continued industrial growth may affect the region’s infrastructure, tax structure, and long-term planning in the years ahead.

Residents can continue following My Neighborhood News for updates on development, infrastructure, and growth across Caldwell County and surrounding Central Texas communities.

By Tiffany Krenek, My Neighborhood News 

Tiffany Krenek has been on the My Neighborhood News team since August 2021. She is passionate about curating and sharing content that enriches the lives of our readers in a personal, meaningful way. A loving mother and wife, Tiffany and her family live in the West Houston/Cypress region.