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
vs. 5M gal/day (typical 400 MW facility)
- Water intake
- Unknown
- Lost to evaporation
- 100%
- Returned to system
- 0% (None reported)
Direct water figures are estimates from permit applications and developer disclosures. Indirect (power generation) figures are calculated estimates. Actual water use depends on technology choices, operating capacity, and weather conditions.
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
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)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)
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.