Construction has begun on Project Caprock, a 540 MW data center campus in Hale County, Texas, just outside Abernathy, marking a new large-scale digital infrastructure development in the region.

The project will span approximately 313 acres and deliver about 1.65 million square feet of data center capacity across six facilities. Development will start with the first building, known as LBB-01, which is scheduled to enter service in the first quarter of 2027.

The multi-phase buildout will generate thousands of construction jobs over several years and create contracts for local suppliers and service providers. Once operational, the campus will support permanent technical roles and generate long-term tax revenue for the local area.

Project Caprock is designed to support high-density computing workloads, including those associated with artificial intelligence and other advanced digital services. The campus will incorporate a liquid cooling system alongside air-cooled heat rejection and a closed-loop water design intended to reduce overall water consumption and limit impact on local resources, including the Ogallala Aquifer.

Dedicated electrical infrastructure to be developed

As part of the development, the project includes dedicated electrical infrastructure to supply the campus and meet large-scale power demand without affecting existing local customers. The project also contributes to regional grid expansion efforts driven by rising data center capacity demand.

The project is being developed by Aligned Data Centers, with Ryan Companies involved in construction delivery and Xcel Energy supporting power supply and grid infrastructure for the campus. Local officials have described the development as a significant addition to the area’s economic base, citing both short-term construction activity and longer-term employment and revenue generation.

Project Caprock adds to a growing pipeline of large-scale data center developments across Texas, where access to land, energy infrastructure, and connectivity continues to attract major investment in digital infrastructure.

The Caprock data center buildout in Texas aligns with broader U.S. hyperscale construction activity, including Amazon’s multi-site data center expansion program in Mississippi, which includes a new $12 billion development phase in Madison County and Clinton, contributing to a statewide program totaling $25 billion in planned investment and more than 2,000 expected jobs.

Despite the advancements, data centers are facing significant pushback from various communities across the United States. For instance, the $15bn Stargate data center campus in Wisconsin is in peril as a first-of-its-kind antidata center referendum has significantly nerfed its future potential. Residents overwhelmingly voted to restrict future data centers. Furthermore, backers said could offer a blueprint for AI infrastructure opponents around the country. Voters in the Milwaukee suburb of Port Washington approved the measure by a roughly 2-to-1 margin, according to unofficial results.

Project Caprock – Factsheet

• Project name: Project Caprock
• Location: Hale County, Texas (near Abernathy)
• Project type: Data center campus
• Developer: Aligned Data Centers
• Total capacity: 540 MW
• Site size: 313 acres
• Total floor area: 1.65 million sq ft
• Number of facilities: Six data center buildings
• Initial phase: LBB-01 (first facility)
• Expected service date (Phase 1): Q1 2027
• Estimated investment: $5 billion (regional economic impact)

Development & Construction

• Multi-phase buildout across six data center facilities
• First phase: LBB-01 data center
• Campus spans 313 acres with 1.65M sq ft capacity
• Construction expected to generate thousands of jobs
• Ongoing subcontractor and vendor participation across phases

Operations & Economic Impact

• Supports permanent technical and operations roles (not quantified)
• Estimated $5 billion regional economic impact
• Long-term tax revenue supporting schools, emergency services, and infrastructure
• Designed for AI and high-density compute workloads
• Expands local commercial tax base over project lifecycle

Infrastructure & Technology

• Liquid cooling system (DeltaFlow)
• Air-cooled heat rejection system
• Closed-loop water system (no continuous water draw)
• Designed to minimize impact on the Ogallala Aquifer

Power & Grid

• Dedicated electrical infrastructure to be developed
• Designed to meet high-density compute demand
• Intended to avoid cost impact on local ratepayers

Key Partners

• Developer: Aligned Data Centers
• Construction partner: Ryan Companies
• Power/utility partner: Xcel Energy