San Angelo leaders press water, infrastructure planning as data-center interest grows

City economic-development officials and staff told San Angelo council members during a strategy workshop that long-term water supply and utility capacity must be coordinated now if the city is to support large projects such as data centers and the continued build‑out of the industrial park.

Michael Dane, interim economic development director, told the council that while the city has identified long‑term supplies, the work to deliver water and to expand utility capacity remains urgent. “We have long term supplies identified. It's a question of following through on the development of those supplies so we bring that water to town,” Dane said.

Why it matters: multiple staff and board members said that large new users—particularly data centers—could require large up‑front water and electrical capacity even though ongoing water use is expected to be lower after initial system charging. Dane urged council to coordinate resources, saying the San Angelo Development Corporation (COSA DC) can help fund infrastructure but council and staff must set priorities.

What officials discussed: - Water supply and project risk: Dane and other staff described continuing work on multiple water sources, including participation in a West Texas water partnership. Brandon and other staff said the partnership and related projects face the routine legal and permitting challenges that large regional water projects encounter, and that the city is pursuing contingencies such as escrow protections tied to payments and permits. Dane said the draft permit for a Contour River water supply component was expected in mid‑July, and that federal grants being pursued by partner cities could affect project timelines and scope. - Data centers and utility needs: Staff described initial high volumes of water for charging closed‑loop cooling systems—“anywhere from 2 to 4 million gallons per building for their initial charge,” Shane said during the meeting—but emphasized that subsequent operational water use should be much lower and largely contained in closed systems. Staff also noted the need for adequate fire suppression and on‑site infrastructure for safety and accessory facilities such as staging warehouses. - Industrial park and airport demand: Dane said COSA DC plans to issue a notice to proceed to finish Phase 2 infrastructure in the industrial park by mid‑2026, and staff flagged the airport and industrial property as near‑term priorities that may require utility extension.

Funding and next steps: Dane and board members said COSA DC has limited flexibility because 72% of its ballot‑authorized funds are dedicated to water and housing uses; that constraint affects how much COSA DC can directly invest in traditional economic development projects. They urged council and the city to work with COSA DC and other partners on a coordinated funding approach to move projects forward. Dane asked council members to remain engaged with their COSA DC appointees while the contract with the Chamber of Commerce is updated to reflect performance measures for business recruitment and retention.

What was not decided: No formal council action or vote on funding for specific projects was recorded during the discussion; staff said they will bring specific funding requests and design proposals back to council for consideration.

Ending: Staff recommended that council prioritize water and utility investments as the city updates planning documents and pursues grant and private funding for industrial and data‑center prospects. Dane said supporting the data‑center opportunities would “have tremendous upside potential for impact to tax revenues,” and urged cross‑department coordination to respond if private prospects proceed.