MCLENNAN COUNTY, Texas (KXXV) — A data center developer has expressed interest in building a new facility in McLennan County Precinct 2, near Riesel.
In response to resident's concerns, 25 News' Bella Popadiuk reached out to Cipher Digital about development plans via email. Below are responses from the company.
Q: Can you confirm the address/location of the area in Riesel your company is looking to build a data center on?
A: We're still evaluating the exact location for the data center, but we have purchased a large area of land near the Sandy Creek Power Plant.
Q: Has the land been purchased yet?
A: Partially, yes. We first purchased land in February 2026 but are still considering purchasing additional land.
Q: How big will the data center be?
A: We have not finalized plans for the potential data center, which will depend on the needs of the specific tenants.
Q: When do you plan to host town hall meetings to address concerned residents?
A: We have requested to hold a town hall meeting and have yet to receive a response from the Riesel City Council. We look forward to hearing from the City Council and working with them to settle on a date and location to engage with city residents on this matter.
Q: What's your message to residents who are concerned and against having a data center developed in their town?
A: In our open letter to the residents of Riesel on May 8, we addressed a number of questions raised by the community. We look forward to being a large contributor to economic development and to working with the community to address their areas of concern.
Being a good neighbor is an important part of our business, and we take seriously the concerns of all residents and officials in the communities in which we operate. When we choose a location to host one of our data centers, we are making a long-term commitment to that area and the people who call it home. In McLennan County and in the city of Riesel, we are committed to working closely with local leaders, residents and organizations, listening to their priorities, hiring locally when we can, and finding meaningful ways to contribute.
Q: What are the benefits of having a data center come into a community?
A: In addition to hiring locally where we can, Cipher Digital routinely contributes significant tax payments to the communities in which we operate, often benefiting residents through the use of those payments for schooling, infrastructure and more. A third-party tax consultant estimates that our proposed facility would contribute approximately $13 million in taxes each year, on average, over 10 years considering depreciation. We also believe it is in the best economic, social and national security interests of the United States for the infrastructure underpinning AI to be located in our country. We are proud of our existing sites in Texas and the role the state plays in serving the national interest.
Q: Where do you plan to get water and electricity for the project?
A: We do not plan on using any City of Riesel water for the purpose of cooling the data center, although we may request to use city water for sinks and toilets for the staff working at the data center. Water demand depends on the technical requirements of the tenants who will occupy the facility, and those factors have not yet been determined. We have committed to sharing figures with the community once we have reasonable estimates. At other sites we've used treatment solutions for brackish or recycled water to cool the data center. We expect to take a similar approach here.
Q: Anything else you'd like to include?
A: Cipher Digital is committed to being a good neighbor to the residents of Riesel and McLennan County, and we look forward to the opportunity to meet with citizens and address their questions.
