Dove Creek Next for Data Center?

Concho Valley Homepage reported on the prospect of another data center, this time in Dove Creek.  Beacon Data Centers is considering building a data center in this rural town and will hold a community meeting at a local church.    

The meeting is scheduled for 6:30 p.m. on Thursday, April 16, at The Four56 Church, located at 13218 Westcross Lane. 

Beacon is backed by Nadia Partners, a Canadian private equity underwriter (PEU).  Nadia has another affiliate, Dromore Energy, that does solar power with battery storage.  

It happens that two projects, Dove Creek Solar and Dove Creek Storage are active projects under ERCOT and both expect a June 2028 completion date.

There is no information indicating these projects are part of the Dromore Energy portfolio, however their existence makes the AI data center more attractive.

Dove Creek has very limited fire/emergency response capabilities relative to those needed by a data center or a battery storage facility, should either catch on fire.  Water is more limited, as well.  

County Commissioner Shawn Nanny plans to attend.  The article quoted Nanny:

“I told them I am getting phone calls left and right, I don’t have any information to give them,” Nanny said. “I told them ya’ll have got to have one meeting immediately followed up by several meetings, but the ball is in their court. I am not conducting this meeting; the only say-so I had was please have a meeting so the people can hear about you.”

Citizens need to hear from County officials as well regarding public infrastructure needed to support such data centers.  That includes County Judge Lane Carter, Commissioner Nanny and County Emergency Response leadership.  

Dove Creek residents should not be managing all aspects of data center development alone.  Elected officials cannot abdicate their responsibility to balance data center desires with community needs and priorities.  One key priority is affordable water and electricity.  At a minimum, Tom Green County officials should be there to speak to that.

Kerr County Disaster Coordinator Retires March 31st

Houston Public Media reported:

Kerr County’s emergency coordinator, Will Thomas, said he was ill and asleep as floodwaters began to rise and didn’t participate in early response calls on July 3. Kerr County Sheriff Larry Leitha also said he was asleep as the river rose, while Kerr County Judge Rob Kelly, who oversees emergency management, said he was out of town.

And no first responder went to their home and knocked on the door?

William "Dub" Thomas is retiring effective March 31, 2026.   County Judge Rob Kelly, also retiring, said they would miss Dub and that Dub cannot be replaced.  I would say as Emergency Management Coordinator Dub was critical to the "asleep, asleep, out of town" leadership approach to the County's flood disaster response on July 4, 2025.

The first disaster was the abject failure to respond, to set up a command post and coordinate efforts in a timely manner.  The second was a failure of communication regarding actions not taken and not holding responsible people accountable.  The third was a failure to drill for flash flooding under Dub's tenure (as the County could produce no documents of such).

The County and Dub are yet to release their "after action" report on the July 4th flood disaster.  Conducting such evaluations are a basic in the emergency response arena.   It could happen in the next four days, but I doubt it.  This transitioned to an accountability avoidance/liability minimization exercise long ago.  

These are the words that welcomed Dub to his role with Kerr County in 2015:

This is very important, the position that Dub has as Emergency Management Coordinator. The City has an Emergency Management Coordinator; now the County has an Emergency Management Coordinator. These are the guys that are literally in charge if there's an emergency, a major fire,  major flood or whatever. And as the Sheriff pointed out the other day, the document is this thing, so Dub helped to  prepare that. So, I think this county, with Dub in place, and with the city there, it's taken us a year to redo this thing, but I think this county is going to have the best emergency management plan probably in the state. So, welcome, Dub.

Those words did not hold up so well.  All hat (plan), no cattle (implementation-flood drill or actual response). 

Update 3-30-26:  Hill Country Community Journal reported:

Thomas was authorized to purchase his county service weapon, a Glock 45, for $100 under a state law permitting such sales to honorably retired law enforcement officers.

SA1 Data Center Has Layers

Chamber Executive Michael Looney informed the Development Corporation that the data center project needed work locally (on the 380 economic development agreement) and at the state level (approval for the plan to provide power/electricity for the project).  

Looney also talked about the recent Economic Summit, which had a panel on the data center project.  Mayor Tom Thompson moderated the panel with three representatives from Emergent Data Centers. 

Looney did not mention the data center at all in the Economic Summit section of his report.  

Emergent is actively marketing the San Angelo data center project to potential users.

Their documentation cites major solar generation projects in the area and the opportunity to contract directly for that power.  Meta is buying the power produced by Apex Clean Energy's solar farm in Tom Green County.  Apex is backed by Ares Management.

Looney also informed the Development Corporation that Peregrine Energy's battery farm would begin construction in Q4 2027.  Council gave that project an 85% tax abatement for three years.  Peregrine is backed by KKR.

Doral Renewables is behind another solar farm in the area.  Doral is backed by Apollo.

Skybox projects in other areas have been funded by BlueOwl, which has had a rough go of late.  Looney has frequently cited private equity (Ares, KKR, Apollo, Blueowl) as being very interested in our area.  There is currently a private equity funded spec building project in the Industrial Park.  

City Council took up leasing the land for the proposed Skybox/Emergent data center for $1 million per year beginning November 1, 2026.  The City already has a letter of agreement with Skybox for the possible sale of the land.  The State of Texas needs more than a letter of agreement to provide power via ERCOT and AEP, thus the lease.  

All lease proceeds will go towards the purchase price.  

Emergent's CEO offered the following during the Chamber's Economic Summit:

"It's the Skybox project and Emergent is the developer."

"We're looking for a home to build a campus for one of the Big Five (Amazon Web Services, Microsoft, Google) .... one will lease the building from us.... We will be building for the next seven years."

As for the specific usage and the servers purchased, that will be determined by the eventual occupant.  

The public should know that there are three potential recipients of subsidies and tax breaks, Skybox, Emergent and the final occupant.  The 380 agreement is under negotiation between the City and Skybox.  

Once Emergent is successful in landing one of the Big Five, that company may request subsidies and/or tax breaks as their investment will be magnitudes greater than the buildings themselves. 

This data center project has layers.  Critical elements remain that need to be addressed for it to move forward.   

A Texas State Senator (Red Team) called for an immediate pause in data center development.  Issues cited include water, power and transparency.  The Senator called for the pause so "rural areas can evaluate effects on critical resources and infrastructure."

Update:  An Ohio Senator (Red Team) called out The Carlyle Group, another PEU, for accepting a  "$4.5 million state tax break for a data center expansion project in Northeast Ohio. Despite Carlyle’s investment, the project will only create ten new jobs."

Update 3-21-26:  ConchoValleyHomepage did a story on City Council's approval of the land lease to our possible data center.  

Update 4-8-26:  Add Nadia Partners and its affiliate Beacon AI Centers to the list of private equity underwriter (PEU) projects.  Beacon will be meeting with Dove Creek residents about a possible project.  

Water is a much greater issue for a rural area which does not have access to numerous water sources (like the City of San Angelo).  Nadia has another affiliate that develops solar power and battery storage, Dromore Energy.

Skybox Backing Out of Land Purchase?

Skybox Data Centers may not buy that 350 acres northeast of town for $17.4 million after all.  City Council has a possible lease of the land to San Angelo Data Center Campus Power LLC on its closed agenda for their March 17 meeting.

One year ago this same City Council approved a letter of intent to sell the land to Skybox Data Centers for $50,000 per acre.  This has not happened.  

Data center financing has become more problematic given the obscene sums of money required.  BlueOwl, a funder of other Skybox projects, has had a difficult run this year.  That means less capital for projects.  Asking the city to avoid the $17.4 million land sale and provide a reasonable lease amount could save big money on the project.  It also takes away a financial plum for pursuing the project.

Mayor Tom Thompson has said that people need to wait for the 380 (economic development) agreement, which many assumed would be after or in conjunction with the land sale.  

The big money behind these projects, solar/battery, data centers, often want to get out within 5-7 years with a handsome profit.  If the city keeps and leases the land, in ten years it may have a giant eyesore for which it is responsible.  Time will tell, unless there is a non-disclosure agreement (NDA).  An NDA could keep all but a few people in the dark forever.  

Update:  Chamber Executive Michael Looney spoke at the Development Corporation and shared that the 380 economic development agreement with Skybox needs a lot more work and that the state needs to respond to the project's power request/proposal.  Apparently, things are on track and a property lease enables progress to be made while those two fronts, the 380 and state power approval via ERCOT and AEP.

Skybox is the owner of the project and Emergent Data Centers is the developer.  Members of the Emergent Team were interviewed by the Mayor at the Economic Development Summit put on by the Chamber.

Gas Price Up $1 per Gallon

Sam's Club Gas price:

Feb. 27 - $2.33 per gallon

Day 1 of attack on Iran by U.S. and its 51st state Israel:

Feb. 28 - $2.59

Afterward:

March 4 - $2.93

March 9 - $3.13

March 11 - $3.33 per gallon

As of this morning San Angelo has experienced a $1.00 per gallon rise which is a 43% increase.  That happened in less than two weeks.  

Update 3-14-26:  The President flip flopped on his gas price stance.  What once was bad is now good....

Update 3-19-26:  Sam's Club gas price as of this morning is $3.70 per gallon.  The administration said gas prices should return to normal in a few more weeks.

Skybox Website Shows Wichita Falls PowerCampus

Skybox has a video of its Wichita Falls "PowerCampus Texas" project on its website.  The project is in conjunction with Blue Owl, which recently stopped early redemptions at one fund in response to investor requests

The design of the Wichita Falls PowerCampus accommodates AI and machine learning.

Skybox is "committed to being a transparent and collaborative partner."  They have a lot of work to do in that arena if they actually come to San Angelo.

Update 3-8-26:  San Marcos voted against zoning for a data center for the second time.  The item can come before their city council again in six months.  

San Angelo City Council could not get Skybox to make a presentation at their evening meeting on February 17th when the company was in town for a Chamber of Commerce event.

The news keeps getting worse for Blue Owl, the potential lender for San Angelo's data center.

Waiting on the 380 with Skybox

San Angelo City Council directed staff in regard to conditional use zoning standards for data centers.  Numerous citizens spoke during public comment with many encouraging Council to utilize a formal development process like Round Rock, Texas.  

Skybox presented earlier today at a Chamber of Commerce event (with paid registration) but did not appear at City Council (which citizens may attend at no charge).  

Mayor Tom Thompson closed the data center agenda item with "the rules are the rules and we set forward with that with the 380."  The 380 is an economic development agreement.  

I submitted a public information request for economic development documents on December 8, 2025.  

Please provide documents, communications, emails and texts relative to the City of San Angelo's economic development arrangement with Skybox Data Centers or whichever legal entity is developing the data center on former city land within the City Farm area in the northeast portion of town. 

This information could include a projected timeline, specific financial or tax incentives, and any other inducements, monetary or in-kind services. 

The Development Corporation website mentions the project with its statement: "Facilitated data center site development tied to renewable energy access." My request is relative to this specific City of San Angelo effort

The City petitioned the Attorney General to keep all relevant documents confidential and away from public view.  

Only the City knows how comprehensive their Non-Disclosure Agreement (NDA) is with Skybox.  Rest assured, Skybox has employed the best lawyers to keep their information, even the most basic, private.  

After Tom Thompson referenced the 380 which is under tight lock and key, it felt like Council had picked out the attire and hair style for the person (Skybox) who might rob you later (higher electricity and water bills).   

Public subsidies are yet to be explored by this council.  I don't see how they can give Skybox tax breaks (or more) without sharing something.  

Update 2-19-26:  When asked about what information cannot be shared per any signed Non Disclosure Agreement and who from the city had signed such a NDA with Skybox the city replied:

The City of San Angelo has reviewed its files and has determined there are no responsive documents to your request.

And this applies to contracted entities as well?  

Update 3-16-26:  BlueOwl has financed a number of Skybox's data centers.  BlueOwl has been having a rougher time of late.  This may or may not impact financing for the San Angelo project.