Business Moves · September 2026

The land left Uhland’s ETJ.
The project did not suddenly become final.

Nearly 900 acres tied to a proposed PowerHouse data center were released from Uhland’s extraterritorial jurisdiction on September 23. That is a real regulatory change. It is not the same thing as a final campus plan, approved building program, confirmed water demand or construction start.

The signal is governance: the site moved from city-edge oversight into a county environment with fewer land-use powers.

01 : The Jurisdiction Shift

The most important thing that changed is who gets to regulate the land.

Uhland did not approve a finished data center on September 23. The city acknowledged petitions releasing nearly 900 acres from its ETJ, placing the land primarily under Caldwell County jurisdiction.

Same land · different regulatory layer
Before
Uhland ETJ

The property sat inside the city's extraterritorial jurisdiction, where the city had certain development-review powers even though the land was outside the city limits.

→
After Sept. 23
Caldwell County

The released acreage is now primarily subject to county-level authority, where Texas counties generally have less zoning and land-use control than cities.

That is why the release matters. It changes the rulebook around the land. It does not answer what PowerHouse will ultimately build.
02 : Permission Is Not a Final Project

Here is what we actually know, and where the blanks still are.

01 · Confirmed
Developer
PowerHouse Data Centers, owned and operated by American Real Estate Partners, is pursuing the site near Uhland in the Caldwell Valley Technology Park.
Known
02 · Confirmed
Jurisdiction
Nearly 900 acres were released from Uhland's ETJ and shifted into Caldwell County's regulatory purview.
Changed Sept. 23
03 · Conceptual
Campus plan
The project shown to residents earlier in 2026 was conceptual. Public reporting says the presentation did not establish final size, building count, power demand or water use.
Still open
04 · Not established
Construction
The ETJ release itself is not a construction permit or operating date. Final plans, infrastructure, permits and development agreements still matter.
Not final

The acreage is especially easy to overread. “Nearly 900 acres released” should not be rewritten as “900-acre data center confirmed.” The jurisdictional action covers land associated with the proposal, not a final campus footprint we can responsibly treat as built.

03 : Why Water + Power Keep Coming Up

Caldwell County’s fight is bigger than one project.

The county has become a target for multiple data-center proposals at the same time that local officials are arguing they do not have enough regulatory authority.

In May, Caldwell County commissioners unanimously approved a resolution opposing high-volume potable-water cooling for data centers and asking the Legislature for greater county regulatory authority. The resolution explicitly points to the limits counties face compared with cities.

PowerHouse representatives had previously told local officials the Uhland-area concept would use reclaimed water and minimal potable-water connections, according to Austin Business Journal reporting. But the same reporting says detailed size, power and water specifications were still not publicly established.

That means the responsible read is neither “this will drain the county” nor “water is solved.” The current public record is not detailed enough for either conclusion.

04 : Headline vs. Reality

The regulatory move is real. The project details are still incomplete.

“Uhland approved the data center.” +
No. The September action released the land from the city’s ETJ. That changed jurisdiction. It did not function as approval of a final data-center campus.
“It is a confirmed 900-acre data center.” +
Nearly 900 acres were released from the ETJ, but that acreage should not be treated as the final data-center footprint. Public reporting says the final campus scope remains unclear.
“Moving into the county means no rules.” +
Also no. County, state, utility, environmental, fire, road and other requirements can still apply. The meaningful distinction is that Texas counties generally have fewer zoning and land-use tools than cities.
“The water impact is already known.” +
Not from the public material used here. Reclaimed water has been discussed, but final water demand and technical design have not been publicly established in the reporting we reviewed.
05 : Reader Context

What part of this are you trying to understand?

The same ETJ change means something different depending on why you are paying attention.

Watch the actual site plan and infrastructure

The ETJ release tells you who regulates the site. The next useful facts are access roads, utility routes, generation, cooling design, setbacks and where buildings actually sit.

Do not rely on either side’s headline number yet

The public record we reviewed does not establish final water demand. Reclaimed water has been discussed, but detailed technical plans remain the better evidence to watch.

The pattern is regional

PowerHouse is one of several data-center developers targeting Caldwell County. The policy question is becoming whether infrastructure and regulation can keep pace with that pipeline.

Jurisdiction can matter without predicting value

Large infrastructure projects can change roads, utilities, noise, land use and development patterns. None of that translates automatically into a positive or negative property-value forecast.

Simple version

The land moved out of Uhland’s edge-of-city jurisdiction. That makes Caldwell County the more important local regulator. We still do not have a final public campus design.

06 : What We’re Watching Next

Four things that would turn this from a jurisdiction story into a project story.

01

Final campus scope

Building count, developed acreage and actual phasing.

02

Power plan

Utility connection, on-site generation, capacity and grid-related infrastructure.

03

Water + cooling

Reclaimed-water source, potable-water demand and the final cooling system.

04

County agreements

Any development, road, tax, infrastructure or mitigation agreements that create enforceable obligations.

07 : Common Questions

FAQ

What is an ETJ? +
An extraterritorial jurisdiction is an area outside a city's corporate limits where the city can exercise certain limited development-related powers under Texas law. It is not the same as being inside the city.
Is construction starting now? +
The ETJ release does not establish a construction start. Public reporting still describes the project details as unresolved.
How big will the data center be? +
A final public size and scope were not established in the sources used here. We are intentionally not converting the ETJ acreage into a confirmed campus size.
Will it use drinking water for cooling? +
PowerHouse had discussed reclaimed water and minimal potable-water connections, according to ABJ. Final demand and cooling specifications were not publicly established in the material reviewed.
Sources
  • Austin Business Journal, Sept. 28, 2026, reporting on the ETJ release and current project status. Source article.
  • Caldwell County, May 2026 data-center resolution opposing high-volume potable-water cooling and requesting broader county regulatory authority. County summary.
  • Texas Governor's Office, Aug. 18, 2026 announcement that PowerHouse agreed to statewide data-center standards. State announcement.
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