The Hill County Commissioners Court held a public hearing before approving a reinvestment zone for a Hubbard area data center project Tuesday, February 10.
Creation of a reinvestment zone is an initial step that must be taken by the county before it can consider a tax abatement agreement with a company.
The Nexus Data Center campus will be situated on approximately 2,000 acres of land between Highway 171 and County Road 3369 just outside of Hubbard. The development is expected to include four data center buildings of 400,000 square feet each, along with a power plant to produce enough power to run the data centers.
Site preparation has been underway at the data center site since November.
Megan Claydon, senior vice president of finance and commercial at Nexus, said during a Hubbard town hall in November that the company will invest billions of dollars in Hill County through the project.
At the same meeting, Claydon said that the company is not seeking a tax incentive agreement with any entity except Hill County. “You might hear of a tax abatement with Hill County, but I want to make it clear that is not a free ride we are looking for,” she said. “We want to be a part of this community and give back resources; we don’t want to take resources.”
Claydon said at that time that the company was planning to negotiate a Payment in Lieu of Taxes (PILOT) program, which she said would allow the company to have predictable tax bills for 10 years and the county to have predictable revenue from the project for 10 years.
Details of any tax abatement agreement were still being negotiated as of last week’s court meeting, and that issue was not on the agenda. With approval of the reinvestment zone, the next step will be a public hearing on a tax abatement agreement once it is negotiated.
Several Hill County residents spoke during the public hearing last week, asking questions about water use, environmental impacts, noise levels, job creation, changing the rural landscape and other concerns.
Amy Teal of Whitney specifically questioned why recording was not allowed at the November town hall and asked the court to delay action until a public meeting with recording allowed is scheduled. A Nexus representative said that he did not know who requested that recording not be allowed, but said that the company has been accessible, is scheduling regular town halls and spoke to 250 people who attended November’s town hall.
In response to the water questions, Nexus representatives said that the site will capture rainwater, use treated effluent from Hubbard’s wastewater treatment facility and a groundwater well that has been approved by Prairielands Groundwater Conservation District.
At November’s meeting, Jerry Schafer, Nexus Data Centers’ director of regulatory affairs and community outreach, said that the primary source of water at the facility will be rainwater, with studies showing 2 billion gallons of rainwater will be captured per year. The site will have retention ponds and engineered methods to utilize rainwater and prevent evaporation on its 2,000 acres.
Nexus has an agreement with the Hubbard wastewater treatment facility for up to 100,000 gallons per day of treated effluent, and the well is a backup method, according to information presented at the Hubbard meeting.
Nexus says that the company has performed ambient noise surveys and will build a final design that keeps noise levels at 65 decibels or less, which is the noise level of a normal conversation.
Addressing questions about job creation, a company representative said that the project will create around 2,500 construction jobs over the next several years as construction continues. Permanent jobs will follow, with some highly technical positions that require employees to relocate to Hubbard, and others that are not highly technical and can be filled by the local workforce.
Nexus said that it has received permits from the Texas Commission on Environmental Quality for its power plant, and a company representative emphasized during the public hearing that its emissions would be closely regulated at the federal level.
One resident asked about rumors of other data centers in various areas of the county. County Judge Shane Brassell said that the Nexus project is the only active data center in the county to his knowledge. He said that the only other proposal involved the Abbott area, but the county has not heard back from that company since the initial meeting.
Brassell also noted that the court’s ability to dictate what happens on private property is limited.
Wesley Clark Dodson Day
The court proclaimed Tuesday, February 17 as Wesley Clark Dodson Day, honoring the lasting legacy of Dodson, a prominent Texas architect whose work helped shape civic architecture across the state in the late 19th and early 20th centuries.
Dodson is credited with designing approximately 15 Texas courthouses, many of which remain in use today. Among his most notable works is the Hill County Courthouse, a landmark structure that has served Hill County residents for generations and is widely regarded as a testament to Dodson’s mastery of courthouse design.
He also designed the Hill County Jail, now known as the Hill County Cell Block Museum, which preserves the county’s legal and social history and reflects Dodson’s emphasis on durability, security and institutional design.
County officials noted that his architectural influence extends well beyond individual buildings, contributing to Texas’ broader historical and cultural heritage.
The proclamation coincides with a visit from Mary Helen Dodson, Dodson’s great-granddaughter and an author, whose presence highlights the ongoing connection between family history and public history. The county encouraged residents to recognize and celebrate Dodson’s architectural, historical and civic contributions to Hill County and the state of Texas.
Road Monitoring Software
Commissioners heard a proposal from Precinct 1 Commissioner Jim Holcomb, who recommended a free trial of EDGITAL road condition monitoring software. The company uses a proprietary artificial intelligence system to analyze and track road conditions.
Holcomb said that the information can be put into the county’s resource management software and will give commissioners GPS coordinates of areas that need attention. It could also be used to simplify reporting to the Federal Emergency Management Agency after a disaster.
Commissioners agreed to try a free trial of the program and assess its capabilities before considering a contract with EDGITAL.
CPS Board Appointments
Commissioners appointed Theo Boyd, Lauren Burrow, Lyndsey Pederson and Brenda Harkins to the Hill County Child Protective Services Board.
Speed Limits
Commissioners approved a 30 mile-per-hour speed limit from the north end of the pavement on Farm Road 3050 to 191 HCR 1212. There were no comments during a public hearing on the proposal.
The court also set a public hearing on a proposal to implement a 30-mile-per-hour speed limit on HCR 1211. It will be held during the regular meeting set to begin at 8:30 a.m. Tuesday, March 10.
Other Action
The court observed and recorded tax abatement compliance letters from Elawan Pitts Dudik Solar I and II, located south of Malone.
Commissioners also declared end-of-life computer equipment as salvage/surplus equipment to be taken to Frank’s Metal Recycling.
The court convened in executive session to discuss tax abatement negotiations for the Nexus data center. No action was taken when open session resumed.
The Lakelander 