Skybox Datacenters Proposes Hyperscale Data Center in San Angelo, TX Amid Community Concerns
Skybox Datacenters is proposing a hyperscale data center on city-owned land northeast of San Angelo, TX, utilizing renewable energy from the nearby AEP Red Creek Substation. While the project promises significant economic benefits, including potential annual franchise fees of $27 million, community concerns regarding water usage, noise pollution, and transparency have emerged. Local leaders are pushing for swift approval, anticipating a surge in data center demand driven by Texas Senate Bill 6.
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Skybox Datacenters plans to develop a hyperscale data center on 343-374 acres of city-owned land northeast of San Angelo, TX. The facility, utilizing high-capacity power lines for renewable energy, aims to draw from the underutilized AEP Red Creek Substation, which has a capacity of 250 MW.
The proposed center's power draw could reach 600 MW, with potential annual franchise fees of $27 million. Community concerns raised at a meeting on December 29, 2025, included water usage, noise pollution, and transparency from city officials.
The Texas Legislature's Senate Bill 6 aims to address infrastructure needs for large facilities and anticipates a surge in data center demand from 9.7 GW in 2025 to 26 GW by 2030. San Angelo's water system produces 20 million gallons daily, with the data center expected to require an initial 9 million gallons. Local leaders express urgency to approve the project, viewing it as a significant economic opportunity.
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