Cipher Digital's Colchis (San Angelo) Gets Base Power Nod from ERCOT

Proactive reported: 

Under the Electric Reliability Council of Texas’s Batch Zero procedure, Cipher Digital said 1.1 gigawatts received conditional base-load status, comprising Stingray’s 100 megawatts and Colchis’s one gigawatt. 

That status means ERCOT’s grid study treats the capacity as established.

Power connections still need to be authorized. 

The Colchis site is a joint venture where Cipher Digital expects to own 95 of the equity.  Cipher has been growing its equity stake since it first announced the project in November 2025.  

Cipher Digital essentially beat the competition to the punch around their grid connection.  

Colchis site includes fully executed direct interconnection agreement with American Electric Power for dual interconnection facility.  

The joint venture partner has never been identified.  These guys don't like revealing anything.  Cipher Digital didn't put San Angelo or Tom Green County on their map.  Their description of the project places it in "West Texas."

San Angelo Mayor Tom Thompson thought Colchis might leapfrog the Skybox/Emergent Data Center as the two applications targeted the same power source, the Red Creek substation.  

Colchis, despite being proximate to the Skybox/Emergent site, is not in City limits.  They will need to negotiate access to water, sewage, fire and police services.  I can't imagine they would provide all that themselves.  

Cryptobrifeing noted:

The company is also developing natural-gas laterals capable of supporting up to 2.5 GW of on-site generation. That behind-the-meter generation capacity gives Cipher the ability to power facilities with its own gas-fired generation when grid power is unavailable or uneconomical.

Residents of Northeast San Angelo could have both a data center and power plant near them.

Cipher recently raised $810 million through Stingray Compute LLC secured notes.  Fitch Ratings noted:

Stingray Compute LLC, a wholly owned subsidiary of Cipher Digital, is issuing approximately $810 million of senior secured notes to fund construction of a 70 MW critical IT load (100 MW gross) purpose-built HPC data center in Andrews, TX. The total budgeted project cost is approximately $826 million, including about $735 million of capex, $38 million of capitalized interest during construction, a $45 million DSRA and $8 million in fees and expenses. Sources and uses reflect a 98% loan-to-cost ratio, resulting in $810 million in debt and $16 million in equity contribution net of $64 million of capex reimbursement. 

The data center comprises two phases — a 10 MW Network Hall and a 60 MW Data Hall — with rent commencing for each phase upon its completion. The campus is 100% pre-leased to Amazon Data Services, Inc. under a 15-year triple-net lease with rent payments and operating expenses unconditionally guaranteed by Amazon.com, Inc. (AA-/Stable). The assets, rights, responsibilities, and cash flows of the project are ring-fenced within a bankruptcy-remote special purpose entity.

Colchis may have power in its sights, however financing will be the next big hurdle.  The State of Texas, despite its talk, remains accommodative to data center development.  Locals effectively have no say.

Town Hall Concerns Reporting: Crickets

I wondered why there were no news stories on the specific town hall meetings held in various City of San Angelo Districts.  After attending one, I understood why.

The first part of the program involved personalizing the respective City Council representative.  The second had new City Manager Phillip Urrutia give essentially a state of the City update.  The third "took the hall" out of the town hall meeting as citizens did not get to hear one another.  

The format had attendees wander to different areas to share their concerns with Urrutia or various Assistant City Managers/Department Heads.  

It harkened back to the Animal Services Open Houses held by former Shelter Chief Morgan Chegwidden in early 2024.  Those were held in response to a series of complaints citizens made to their City Council representatives.  I wrote at the time:

San Angelo is five years into programming that kept unwanted dogs out of the shelter. It should be no surprise that they fill the streets. 

Councilman Harry Thomas said just that at the Council's last meeting. “There are more dogs on the streets than there’s ever been.” 

Yes there are. It's from years of "letting them roam unaltered."

I attended the specific Town Hall meeting to share an animal related concern.  It dealt with an irresponsible citizen who'd abandoned over 40 cats and two dogs.  The City claimed this person was a "cat colony manager" even though they'd never fixed their pets, did not consistently provide food/water, nor provide veterinary care for any sick or injured pets.  Numerous pets were poisoned on their watch.  

This owner was reported many times for poor treatment of their animals and consistently failing to follow city ordinances  (spay/neuter, microchip, animal cruelty).

I did not get to share my concern as I needed to leave the meeting at 6:45 pm to care for some of our critters and the City Manager was still presenting.   

This also happened to me relative to Mayor Thompson's Data Center Town Hall but that was available to watch later on video. 

Time will reveal if City Council hears a report as to common constituent concerns across districts and any plans to address those at a high level.   

Six meetings, one video and no opportunity to hear specifics as to why people attended.  Did someone did not want to get lectured by a 92 year old lady, like Rep. August Pfluger?

Texas Energy: Expensive Only One Way

Texans who invested in home solar generation have not gotten a return on their investment as Texas' energy grid added fees while electricity providers dropped the price they paid generators for their power.

Contrast this with power devouring data centers, who have their hand out for giant tax breaks (sales, property) and direct economic development subsidies.  

Part of the reason for buying a solar system came from being left out in the bitter cold for five days in February 2021.  No one apologized to us them.  We are back there once again, economically.  No one is listening to us now.

Data centers that generate their own power stand to advance in our political climate.  Beacon Data Center's Westline Energy Infrastructure plans to install 240 gas fired generators and 40 diesel generators to power their data center complex.  Their "hot economic opportunity" stands to further heat and dry out our natural ecosystem.

A 5,000 gallon diesel spill in Spring Creek or Dove Creek would be disastrous.  That very thing just happened in New Jersey.  

Small person investment is rapidly eroded while the big boys rake it in.  Citizens are tired of getting the short end of every deal.  

Businesses and elected officials should take note.  There is little evidence that is happening.  

Trump II Wants Data to Reign

 Trump II recently wrote "Let data reign" on Truth Social.

"If you want to pay lower taxes, if you want to create tremendous wealth, if you want your house to be more valuable and everything else, you're going to want a data center," Trump told reporters in the Oval Office. "If you want to go through poverty, crime and squalor, I would say don't approve data centers." 

Commerce Secretary Howard Lutnick chalked up opposition to "propaganda by our adversaries" and said the benefits to communities are "obvious." 

Trump's former AI czar, David Sacks, asserted that "misinformation" was to blame for the  backlash and said "no one is trying to force these data centers down anyone's throats."

Actually a collection of someones is trying to just that, Mr. Sacks.  It's a combination of elected and unelected government officials, TechGods and their financiers (private equity underwriters (PEU)),  Sacks knows them well. 

Surely data exists on home valuations in close proximity to data centers.  I can't imagine it supports Trump II's assertions (which often are not fact based).  That said, if homes across from data centers become unsellable then that data could be missing.  Abandoned homes often become magnets for poverty, crime and squalor.  

The benefits of data centers to billionaires Trump II, Howard Lutnick and David Sacks are obvious.  The investor class has multiple ways to profit from data center proliferation.  They can front run government policy and federal budget priorities.  Annual financial disclosures will indicate how these "public servants" are profiting from their private holdings.

Also, Mr. Lutnick's getting a multimillion dollar house from Jeffrey Epstein for $10 is not available to common folk.

Trump II and his kingly court want data to reign.

 

Data cannot be a sovereign power.  It should not be chief of state or have the authority of a monarch.

TechGods's social media usurped children's brains, their physical/emotional safety, social development and individual autonomy.  With AI they are shooting to distort whole societies.  

Data is incapable of reigning.  It's purveyors have shown their ability to feign to maximize their financial position and personal power.  "Everyone can have a penthouse" and "AI will cure cancer."  

Trump II, Lutnick and Sacks are selling something.  It's called their own book.  Normally, those come with disclosures but we are in a non-disclosure agreement (NDA) world.  Leon Black is telling us that very thing with his non-testimony.

The only data that rains is what they want us to see.

--cross posted at PEUReport as private equity plays a key role in data center rollout

Beacon to Bypass Gov. Abbott's Approval?

Beacon Data Centers is yet to commit to Governor Gregg Abbott's data center requirements.  They may not need to given their project is not requesting access to the Texas electrical grid according to the Concho Observer.

Skybox committed.  Emergent committed, as did Cipher Digital.  These three names are associated with two planned data centers in northeast San Angelo.  

Emergent and Cipher Digital are competing for grid power in this ERCOT application round.

Beacon is counting on ERCOT to approach them for connection.  Beacon's power plant of 280 generators (240 gas & 40 diesel) will need to avoid Spring Creek's floodplain.

Financing will be the big hurdle for all three projects.  Cipher Digital already inked several major customers.  Emergent and Beacon are currently marketing their wares to various TechGods.

All three could make and conversely, none could come to fruition.  That's not reassuring to residents of Dove Creek or northeast San Angelo neighborhoods.

State government does not have our backs.  That said, Rep. Drew Darby has asked Beacon Data Centers to be more forthcoming regarding its air emission plans.  Future issues to address include water (which shifted from surface only to drilling wells), noise, the project's heat signature and traffic.  

Beacon executives said "we wouldn't be a good neighbor if we did that."  The next time he showed up "that" was in their plans.  No wonder they don't want more public meetings given they plan to be a bad neighbor.

Update 8-25-26:  It remains to be seen if TCEQ holds a public meeting on Beacon's air emissions application.

Residents have until Friday, Aug. 14, to file a written protest with the TCEQ about Beacon Data Centers' air quality permit applications. The TCEQ will make a decision about whether to hold a public hearing on the company's air quality permit applications based on community input.

Update 8-26-26:  InsideClimateNews wrote about emissions from numerous Texas data centers, including Westline.

George P. Bush indicated two of the three possible data centers may come to fruition at a Chamber of Commerce sponsored event.

Update 9-4-26:  Trump II is likely in favor of Beacon's data center approach for Dove Creek, that is until he learns they are a Canadian company sponsored by a Canadian private equity underwriter (PEU).

Trump said that he’s letting companies build their own power plants so they don’t have to use the grid, which would mean lower energy costs for residents. He didn’t mention, however, that would also mean excess pollution and smog for communities that would have the additional power plants in their backyards.

Update 9-5-26:  Who knew data center wastewater might introduce potentially deadly pathogens.  

Meta Cheyenne Datacenter CHY1-2 discharge contained Cupriavidus gilardii.

It came from their closed loop cooling system, currently under construction. 

Camp Mystic Shuffled Funds to Insiders before Bankruptcy

A bankruptcy filing shed light on Camp Mystic's finances according to KERA News:

....filing also shows Camp Mystic reported about $774,000 in payments or transfers benefiting company insiders between June 2025 and April 2026. That category includes managers of the company, their relatives and affiliated businesses. 

The largest share — $480,000 — went to Natural Fountains Properties Inc., an affiliated company that owns property used by the camp. Camp Mystic paid the company $80,000 a month in rent from July through December 2025. 

Edward Eastland, a manager of Camp Mystic, received about $69,800 during the period covered by the filing. 

George Eastland received about $60,300, while Richard Eastland Jr. received about $59,200. Together with compensation paid to their spouses, the six members of the Eastland family received nearly $300,000 since June 30, 2025.

More than 130 people died across the region, including 25 campers and two counselors at Camp Mystic, along with camp owner and executive director Dick Eastland.

Siphoning cash before a bankruptcy is a common move in the financial world.  Private equity underwriters (PEU) are infamous for bleeding affiliates prior to an insolvency.  

PEUs also utilize interrelated corporate entities to maximize profits and ring fence liability.

Twenty seven people died in the hands of Camp Mystic.  Officially 119 people died in Kerr County from the July 4th floods. 

Kerr County is yet to conduct an evaluation of its disaster response on July 4, 2025.  They've had ample time but lack the will to do an emergency management basic.  So far, the state of Texas has given Kerr County officials an undeserved pass.   This too has a PEU ring and echoes the Bush White House Lessons Learned report on Hurricane Katrina which never mentioned the hospitals with the highest death toll in Katrina's aftermath.  One was PEU owned, the other other landed a Bush on its corporate board.  

Texas has more in common with Louisiana than I thought.  Political connections, so canaille (mischievous; sneaky, wily). 

Beacon's San Angelo, Alabama

Beacon Data Centers has more than one San Angelo in its sites for a future data center.  In July Beacon shared its intent to build in Mobile County, Alabama.

Oddly, their map mislabeled their new Mobile County location.

Someday Beacon's Canadian and Irish executives will learn the difference between West Texas and the Redneck Riviera.  Until then, it's Beacon AI, garbage in, garbage out.  

Update 9-5-26:  Beacon's campus map shows the Alabama site as San Angelo, Texas.  I checked from multiple browsers just to make sure.  Maybe someday, their marketing folks or an AI product will find and correct the error.