LUBBOCK, Texas (KCBD) – The Lubbock Economic Development Alliance is defending its decision to approve a new data center inside city limits, saying the project is far smaller than the large-scale facilities residents have raised concerns about.
At its June board meeting, LEDA approved an agreement with the company Corva to build an inference data center near Municipal Drive and Guava, next to LP&L’s Northeast Substation outside the Loop. The project is known as “Project Infrared.”
LEDA President John Osborne said Corva plans to start by using 6 megawatts of power, with a maximum of 27 megawatts per day — comparable, he said, to large manufacturers such as X-Fab or Leprino. The city’s proposed definition of a large-scale data center sets the threshold at a minimum of 100 megawatts.
“They’re not a major power user like the hyperscale data centers are,” Osborne said.
The 50,000-square-foot center would not generate power on-site. Corva said the facility would use 1,500 gallons of water per day through a closed-loop cooling system. The city’s proposed definition of a hyperscale center requires a minimum of 100,000 gallons of water per day.
Osborne said LEDA has declined other projects over resource concerns.
“We’ve actually turned down $25 billion worth of projects that were looking to potentially come to Lubbock because they were using too much water,” Osborne said. “The bulk of those were data center related, but not all data centers. Some of those were actually manufacturers as well. And so, it’s not that every company is received with open arms coming to us.”
Osborne said the project was not publicly announced before the agreement was reached because Corva still needs to secure an interconnect with LP&L to access the ERCOT grid.
“And if they don’t get that, then the project goes away because there’s no need for them to actually be here if they can’t get the power that they need,” Osborne said.
Osborne said the project is not located on land near the North Interstate that was rezoned at a recent city council meeting. He said the nearest homes are about a mile away, off MLK Blvd.
“Of the 100 acres that are there, 80 of it is actually in a floodplain and not developable,” Osborne said.
The land is already designated as light industrial, Osborne said, meaning the project did not require review by the Planning and Zoning Commission. Because no city incentives were offered, the project also did not require city council approval.
“There’s no incentives that were being offered to this company,” Osborne said. “They paid for the land and they were paying for all the infrastructure upgrades that need to be taken place at that site and to be able to connect in and to receive the power they need. So as a result, not having any incentives, there’s not something for the council to actually have to approve.”
Osborne said the project is expected to generate $23 million for the city, $14 million for the county, and $3 million for the hospital district in tax revenues over the next decade.
He said council members have been involved in discussions about the project and have asked questions about power, water, and the impact on nearby residents.
“While this is a data center, it’s not a high water user, it’s not a high power user, they didn’t receive incentives,” Osborne said. “They’re willing to be inside the city of Lubbock, so they have to follow all the regulations the city of Lubbock has. And they are bringing a tremendously large investment to this community that will then go on the tax rolls.”
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