Zydeco Development Corporation announced on Apr. 7 plans to build a roughly 225,000-square-foot data center in Hutto, northeast of Austin. The proposal would replace previous plans for a multifamily housing development at the same site.
The change is significant as it shifts the use of a 41-acre property at 450 Ed Schmidt Boulevard from residential to light industrial. Zydeco said the new facility would have lower impact than housing by reducing traffic and water usage, and by including features such as large setbacks and sound mitigation measures.
The proposed data center will include a mechanical yard and is expected to feature about five acres of green space along with acoustic barriers and enclosed equipment. The company’s plan also calls for a closed-loop cooling system intended to limit water consumption. Final approval for the zoning change rests with the Hutto City Council, which could vote on the matter in May. If approved, infrastructure work may begin in 2027.
More than thirty residents living near the proposed site have submitted letters opposing the project, citing concerns over increased power demand, water usage, and potential effects on property values. These objections reflect broader debates seen elsewhere as more data centers are developed across Texas suburbs.
Zydeco argued that its chosen location is well-suited for such use because it sits next to an Oncor substation and transmission lines—key infrastructure needed for large-scale data facilities. Like other projects of this type, Zydeco will need to secure adequate grid capacity before moving forward.
Hutto has become an area of interest for several companies planning or building similar facilities as demand grows throughout northern Austin suburbs.
