A 500MW data center campus by Cipher Digital is being planned near Sandy Creek power plant outside Waco, Texas. More details have been provided around the project as local outlets report the company is looking to develop near Riesel in McLennan County. Cipher told a local outlet that it has acquired a large area of land near the plant. Moreover, the company said it is still finalizing building plans, which will depend on the end user.
Precinct 2 Commissioner D.L. Wilson also confirmed that Cipher Digital has approached him about a proposed data center project in the area. “I have recently been approached by Cipher Digital regarding a proposed data center project near Riesel,” he said. Wilson noted that while he opposes data centers in McLennan County, Texas law gives county commissioners little authority to prevent such developments from moving forward. Major data center and related projects across the United States are advancing, however setbacks are not devoid. For instance, the Intel Ohio One chip making facility is facing major setbacks as it keeps on pushing its expected deadline for operations, now slated for 2030 with production commencing by 2031. The plant is fundamental in the AI industry supporting data centers and other related infrastructure.
Outlook on the Cipher Data Center Campus in Texas
The proposed Cipher data center campus outside Waco, Texas is yet to bring its plans to the commissioner’s court. However, it is first looking to hold a town hall meeting about its plans. Cipher has previously mentioned plans for a 500MW development in McLennan, with few further details.
However, according to the company’s most recent investor presentation, land for the project is secured and will be energized around 2028. Work on the 932MW Sandy Creek Generating Station started in 2008. The plant entered operation in 2012/2013, burning low-sulfur sub-bituminous coal for power. The plant, however, is due to be offline until 2027 due to a failure. Previously known as Cipher Mining before rebranding and pivoting away from cryptomining towards large-scale data center sites.
It aims to leverage AI and hyperscale customers, Cipher Digital has multiple projects in planning and development across Texas. Data centers in Waco and its environs are gradually advancing as Infrakey Capital filed a petition asking Waco to release more than 500 acres of land from its extraterritorial jurisdiction north of Lacy Lakeview.
Project Factsheet:
- Project Name: Cipher Data Center Campus
- Location: Near Sandy Creek Generating Station, Riesel, McLennan County, Texas, USA
- Estimated Investment Value: Undisclosed
- Project Type: Hyperscale / AI Data Center Campus
Timeline
- Land acquisition secured by Cipher Digital
- Project planning and design phase underway
- Building specifications dependent on end-user requirements
- Site expected to be energized around 2028
Site & Scale
- Planned power capacity: 500 MW
- Located near the 932 MW Sandy Creek Generating Station
- Large land parcel acquired in McLennan County
- Positioned outside Waco near the town of Riesel
Key Contractors/Stakeholders
- Developer: Cipher Digital
- Local government stakeholder: D.L. Wilson
- Nearby power provider: Sandy Creek Generating Station
- Potential future AI and hyperscale customers yet to be identified
Infrastructure Scope
- Up to 500 MW data center campus development
- Multiple data center buildings planned
- High-capacity power infrastructure connection
- AI and also hyperscale-ready computing facilities
- Development adjacent to major existing power generation assets
Strategic Objectives
- Expand Cipher Digital’s data center portfolio in Texas
- Support growing AI and hyperscale computing demand
- Also leverage proximity to large-scale power infrastructure
- Diversify business beyond cryptocurrency mining operations
Current Status
- Land secured and preliminary planning ongoing
- Building plans still being finalized
- Also town hall engagement expected before formal submissions
- No project application presented to the commissioners court yet
- Energization and development currently targeted for 2028
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