San Angelo May End Up With a Data Center It Can’t Regulate

Capacity Concerns at Red Creek Substation

A high-ranking state official told San Angelo LIVE! that questions remain about whether the Red Creek substation, located in the middle of land acquired by Cipher, has sufficient capacity to serve multiple large data center loads. The official expressed uncertainty about whether the substation can reliably power both the Skybox/Emergent project next door and the Cipher project — or another major data center development — at the same time.

These concerns have led some observers to speculate that the Skybox/Emergent project could face significant delays in receiving transmission infrastructure. If capacity issues at Red Creek are not resolved in time, the project risks missing its targeted 2028 energization window and could be delayed or canceled.

The comments reflect growing concern among some state leaders about the concentration of large loads in parts of West Texas and whether existing transmission infrastructure can support them without major upgrades.

County Remains Cautious — With One Notable Exception

The Tom Green County Commissioners Court has taken a cautious approach to data center development. Observers note that the court appears reluctant to impose strong regulatory measures, in part because of what occurred in Jefferson County, where the county was sued after attempting to ban or place stricter oversight on data center projects.

However, at least one commissioner has taken a more aggressive stance outside of formal county action. Commissioner Rick Bacon’s wife Glenda has been an outspoken critic of data centers on Facebook and has threatened local business owners with boycotts if they publicly express support for data center projects. This approach stands in contrast to the Commissioners Court’s broader reluctance — and apparent ineffectiveness — in enacting formal regulations on data center development. Commissioner Bacon did not respond to an inquiry regarding these reports.

Potential Outcomes for San Angelo

If Cipher Digital’s Colchis project advances under Batch Zero while the Skybox/Emergent project faces delays or cancellation, San Angelo will still see a major data center come online in the broader area. However, because the Colchis site sits outside city limits in the unincorporated county, San Angelo residents and city government would have no ability to impose local regulations on its build-out, water usage, or infrastructure demands.

Residents could still experience the impacts of development — including upward pressure on rents, increased hotel occupancy from construction workers, and additional strain on water resources — without the city or county having a direct legal framework to manage those effects.

By contrast, the Skybox/Emergent project remains tied to city property and approvals, giving San Angelo officials more leverage but also greater exposure to ongoing local debate, political backlash, and potential delays. Until ERCOT releases the list of projects included in Batch Zero, there is no clear indication whether the Skybox/Emergent project will receive enough power allocation to proceed on schedule while the neighboring Cipher project advances with little organized opposition.

As ERCOT moves into the implementation phase of Batch Zero, those who opposed data center development in San Angelo, including Bacon's outspoken wife, may soon confront a difficult question: What good will come for residents inside city limits if they endure the hardships of economic growth driven by data centers, only for city government to be deprived of the tax revenue needed to address the challenges — like funding the police — that growth creates?