MCGREGOR, Texas (KXXV) — The McGregor City Council has approved the sale of 499 acres of land for a proposed data center known as Project Merlin, a more than $400 million investment.
During a special meeting this week, council members agreed to the land deal. Residents say they feel the decision was made quickly and have raised concerns about its impact on the community.
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Joel Hamilton, a McGregor resident, said the public should have had more input.
"I think the community should have been asked about it because of the concern of the water usage," Hamilton said.
Resident Jerry Sanchez said he is worried about the financial impact on locals.
"You know, if, if it's gonna affect us financially and of course, you know, bills and all that, so that's just what I'm concerned about," Sanchez said.
Galaxy, the AI company behind the project, estimates it will create more than 30 full-time jobs with average salaries of more than $60,000 a year. The company also says it will pay for its own infrastructure, including power upgrades and a new electrical substation.
Water usage was a central concern raised by residents at the meeting.
"The amount of water usage... basically I think the real concern is it's going to be depleting the water source," Hamilton said.
Residents at the meeting asked what a closed-loop water system means. Galaxy explained each building would use about 3,000 gallons of water per day through a closed-loop cooling system that recirculates water. Water use will be contractually capped, and any additional water infrastructure will be paid for privately.
I reached out to Galaxy and the city of McGregor regarding this decision. As of Thursday morning, I am still waiting for a response.
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