PowerHouse Plans Austin Suburb Data Center But Seeks To Skirt City Control

A leading data center developer is planning to build a new campus near Uhland, Texas, a 2,000-person town 25 miles south of Austin. But it is seeking to pull the project from the city’s auspices.

PowerHouse Data Centers, a division of American Real Estate Partners, has filed a petition to release its planned site from Uhland’s jurisdiction, the Austin Business Journal reports. PowerHouse instead wants to build the 500-acre data center under Caldwell County’s authority, officials confirmed to the outlet on Monday. 

The campus would be built in Caldwell Valley Technology Park, a 3,600-acre site. The plans presented to Uhland reportedly didn’t include specifications on power usage.

Uhland City Administrator Hayden Brodowsky said in an email to Bisnow that there was “substantial pushback” on the project from residents during an open house last month and that the project will go through the county. 

The petition comes amid a struggle over the nationwide data center boom. Public outcry over concerns like air pollution and electricity costs has led cities and counties to ban new data center projects, and several states are considering moratoriums. 

But under Texas law, counties in particular have little authority to regulate data centers, according to a Caldwell County presentation. Counties don’t have control over zoning, can’t issue moratoriums and must approve permits within 30 days if an application complies with relevant regulations. As part of its data center strategy, Caldwell County says it plans to negotiate development agreements designed to achieve better environmental protections and monetary benefits.

PowerHouse declined to comment.

PowerHouse has a focus in Northern Virginia but has expanded across the U.S., with nearly 120 data centers underway. 

Austin has become a robust secondary market for data centers, with planned developments increasing and creating a “connective corridor” with San Antonio, according to a 2025 Cushman & Wakefield report. Planned data center capacity rose to nearly 7.8 gigawatts by the end of 2025 in Austin and San Antonio, up from 2.8 GW in 2024.