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Residents press council about proposed AI data centers; council says ETJ and county permitting likely handle projects outside city limits

Lufkin City Council · May 19, 2026
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Summary

Several residents sought to discuss proposed AI data centers and tax abatements; councilors told speakers that a proposed facility outside city limits lies in the city's ETJ and that permitting and abatements would likely be handled by the county commissioner's court.

Multiple members of the public used the meeting’s public-comment period to raise concerns about proposed AI data centers in the area and ask why the topic was not on the city agenda.

Council staff told speakers that the specific site they referenced is outside Lufkin’s city limits and lies in the extraterritorial jurisdiction (ETJ); staff said the council’s regulatory authority outside city limits is limited and suggested attendees take the matter up with the county commissioner's court, which would consider tax abatements. The mayor also said the city is working on industrial performance standards that would apply to data centers if a facility were proposed within city limits.

Some commenters pressed the council on when a proposed in-city data center would be added to the council agenda; staff said no permit application had been filed and the land had not been sold. One speaker was asked to sit down after repeatedly trying to speak about the data center despite being told the topic was not on the agenda.