LACY LAKEVIEW, Texas (KXXV) — Lacy Lakeview residents are questioning whether city officials spent taxpayer money wisely on a trip to Hawaii, where they attended a conference related to a proposed data center project in the community.
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City Manager Calvin Hodde traveled to the Pacific Telecommunications Council conference last month, joining InfraKey — the company behind the planned data center. While there, the city held a signing ceremony for a public-private sponsorship related to the project, though the project itself has not received final approval.
"Really the purpose of the trip was to learn more about data centers and what goes in them, the operation and things like that," Hodde said.
Hodde emphasized that what was signed was the same non-binding memorandum of understanding the council had already approved.
"What was actually signed is the same non-binding MOU that the council has already approved, and it was just more of a formal signing," Hodde said.
However, some neighbors are criticizing the city for what they view as an unnecessary expense.
"I think all of us were just, we weren't surprised by it, but it was definitely taking taxpayer money to go take this lavish trip to Hawaii to say that this whole agreement was finalized, which I just want to tell people this is not finalized," neighbor Shauna Fenn said.
Hodde defended the trip's location, noting the conference is held in Hawaii annually.
"I think everybody seems to wanna make a big deal out of this thing because it was in Hawaii, but that's where that conference is held every year," Hodde said.
City leaders say the next steps include working with InfraKey to develop timelines and continuing early discussions with the city of Waco about a potential water partnership. The data center facility plans to use treated wastewater instead of fresh water for most operations.
Hodde also addressed what he called misleading information circulating online about the project and says it's outdated.
"What I learned at the conference is that what we're hearing from people here posting on things is really not accurate. They're not sending out accurate information," Hodde said.
But neighbors say they have researched data centers and remain concerned about its potential local impact.
"We didn't have to take a trip to Hawaii to do our due diligence on what this is going to potentially bring to our area. We know that people don't want to look out their back door or their front door and see this massive industrial building," Fenn said.
The city and InfraKey plan to hold town hall meetings in the coming months as more details about the project become available. InfraKey representatives say they want to give residents more information and are asking the community to keep an open mind about the potential regional benefits.
An open records request for the trip's expenses filed last week had not been fulfilled as of Tuesday afternoon. A Change.org petition to stop the data center near Katy Lane has nearly 3,000 signatures. The next community meeting will be on Sunday at the Ross Volunteer Fire Department at 6 p.m.
Questions for InfraKey:
InfraKey executive Sujeeth Draksharam is defending the company's proposed data center project in Lacy Lakeview, addressing resident concerns about the recent Hawaii signing ceremony and the facility's potential impact on the community.
The memorandum of understanding signed during the Pacific Telecommunications Council conference was the same document already approved by the city council, Draksharam explained.
"The MOU was essentially the same one approved by the city council. This showcases Lacy Lakeview to the world of data players as a lot of our customers are aware and gives an opportunity for similar partnerships to be formed around the country," Draksharam said.
He emphasized that the partnership could serve as a model for future public-private collaborations without requiring public fund allocation to data centers.
"In the future, this partnership shall be a model for other entities of public partnership without any public funds allocation to the data center," Draksharam said.
Regarding utility concerns, Draksharam said the facility would have minimal freshwater needs, relying instead on treated wastewater for most operations.
"Our freshwater needs will be minimal as we plan on using the treated wastewater for operations other than potable. We are working on power with the appropriate utilities. With minimal freshwater requirements, we do not anticipate any issues," Draksharam said.
To address resident protests and concerns from nearby landowners, InfraKey plans to hold town hall meetings.
"We will be conducting town hall meetings to address any concerns and incorporate their suggestions," Draksharam said.
Draksharam asked the community to remain open-minded about the project's potential benefits.
"Please give us a chance to explain and understand the potential regional benefits to the entire area," Draksharam said.
He described the data center campus as unique, citing its potential to address broader regional infrastructure challenges.
"This data center campus is unique due to the fact that this will aid in facilitating the long-term overall regional issues like water, wastewater, fiber, property taxes, and electric surcharge cost reduction due to Storm Uri on certain residents' pursuit of the respective entities' decision within McLennan County," Draksharam said.
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