Palomino Alpha Data Center
Proposed size
360 MW
Site area
365 ac
Developer
PALOMINO ALPHA, LLC
A proposed 360 MW data center in northern Guadalupe County, near the unincorporated community of Zorn on Highway 123. The developer entity is PALOMINO ALPHA, LLC (principals not publicly identified). The Guadalupe County Commissioners Court approved "Palomino Alpha Reinvestment Zone #1" in December 2024 and expanded its boundaries in February 2026 to add buffer requirements. A development agreement was signed with the county. The project encompasses approximately 365 acres and is adjacent to LCRA's largest regional substation — a significant power-readiness indicator. The development agreement references recycled water systems for cooling. This project is explicitly not affiliated with CloudBurst Data Centers.
Water Impact
Daily water use (estimated range)
Unknown
Water returned per day
None reported
- Water intake
- Unknown
- Lost to evaporation
- 100%
- Returned to system
- 0% (None reported)
Location
Address: Highway 123 (near Zorn), Zorn, Guadalupe County, TX
Water source: Recycled water (per development agreement)
Application is filed — your voice carries extra weight right now
Officials are still persuadable. A formal application creates the paper trail that triggers public notice, but no vote has been scheduled yet. Letters received during the review period go into the record and are read by staff writing the recommendation.
Timeline
March 25, 2026
Guadalupe County development agreement vote fails 2-2
The Guadalupe County Commissioners Court voted 2-2 on March 25, 2026 on a development agreement with Palomino Alpha, LLC. The tie vote means the agreement did not pass. County Judge Kyle Kutscher abstained from the vote, citing a conflict of interest: his family owns approximately 200 acres adjacent to the project site (land held in family since the 1930s). Developer principals remain publicly unidentified. No resubmission date has been announced.
Source →(opens in new tab)Via research-projects
February 25, 2026
Commissioners expand Palomino Alpha zone boundaries, add buffer requirement
Guadalupe County Commissioners Court voted 3-1 to expand and amend Palomino Alpha Reinvestment Zone #1, enlarging its boundaries and adding a buffer requirement between construction and neighboring properties to address noise and other community concerns. Commissioners Ott, Wolverton, and Engelke voted in favor; Commissioner Germann dissented. Judge Kutscher abstained again, reaffirming his family's land interest in the project area.
Source →(opens in new tab)April 15, 2025
Updated Palomino Alpha development agreement (version dated 4-10-2025) presented to Guadalupe County Commissioners Court
The April 15, 2025 Guadalupe County Commissioners Court regular meeting agenda (item 7.O) included "The Development Agreement with Palomino Alpha, LLC" for discussion and possible motion. The supporting document was titled "Palomino Alpha-Guadalupe County Development Agreement Updated 4-10-2025," indicating a revised agreement was prepared following the March 25, 2025 failed vote. The meeting outcome of this item has not been confirmed from available public sources as of April 2026.
Source →(opens in new tab)Via foia-monitor
March 25, 2025
Guadalupe County Commissioners Court declines Palomino Alpha development agreement (vote fails)
Guadalupe County Commissioners Court considered the Palomino Alpha LLC development agreement on March 25, 2025. The motion failed to carry; County Judge Kutscher abstained, citing a disclosed conflict of interest (family owns approximately 200 acres adjacent to the project site). Concerns raised during the meeting included estimated water consumption, an on-site natural gas backup power plant, and insufficient technical documentation. The county directed staff to obtain firm technical documentation before reconsideration. [CITATION NEEDED: Confirm vote count and individual positions from the March 25, 2025 official meeting minutes — https://www.co.guadalupe.tx.us/commissioners_court/agendas_and_minutes. The April 15, 2025 Granicus agenda item 7.O referencing an "Updated 4-10-2025" development agreement corroborates that the original agreement did not pass.]
Source →(opens in new tab)Via foia-monitor
December 1, 2024
Guadalupe County approves Palomino Alpha Reinvestment Zone #1
Guadalupe County Commissioners Court approved "Palomino Alpha Reinvestment Zone #1" — a designation enabling property tax abatements for a proposed data center development near Zorn on Highway 123, adjacent to the largest regional LCRA substation. County Judge Kyle Kutscher abstained, disclosing that his family owns approximately 200 acres adjoining the project area.
Source →(opens in new tab)
Sources
- 1. Officials amend changes for data center plans officially in the works in Guadalupe County — Seguin Today, 2026-02-27. Link →(opens in new tab)
- 2. County OKs reinvestment zone for development (Palomino Alpha, Dec 2024) — Seguin Gazette, 2024-12-01. Link →(opens in new tab)
- 3. Guadalupe County commissioners deadlock on Palomino Alpha data center agreement — Seguin Today, 2026-03-25. Link →(opens in new tab)
Community Notes
County Judge Kyle Kutscher abstained from both the December 2024 approval and the February 2026 expansion votes, publicly disclosing that his family has owned approximately 200 acres within the Palomino Alpha Reinvestment Zone boundary near Zorn since the 1930s. Commissioner Germann cast the lone dissenting vote in the February 2026 expansion. The project is located in Guadalupe County, which is generally outside the Edwards Aquifer recharge zone — but the Guadalupe River system (which the LCRA oversees) is hydrologically connected to regional water resources. The development agreement specifies recycled water for cooling, which would be positive for local water supplies if followed. Daily water consumption figures are not yet publicly disclosed.