Texas Firms Plan $1 Billion AI Data Center in Lufkin

AmpZ Champion Data Center Holdings and EPG Champion Development LLC intend to build an artificial intelligence data center on 1,000 acres at a former papermill site near Lufkin, Texas. The project involves $1 billion in private capital investment and is projected to generate 500 construction jobs and 30 full-time positions.

AmpZ Champion Data Center Holdings and its partner EPG Champion Development LLC are facing local opposition from residents concerned about water consumption, noise pollution, and rising electricity costs. In response, Raine Cotton of EPG Champion Development LLC stated the facility will utilize sound buffer zones and a closed-loop cooling system to minimize its environmental footprint.

Local officials are divided on the project's impact. Lufkin Mayor Mark Hicks supports the economic potential, while Angelina County Judge Keith Wright intends to tie any tax abatement agreements to strict environmental protections and resident safeguards. Meanwhile, Governor Greg Abbott has responded to the community backlash by calling for regulations and a potential ban on data centers located in rural neighborhoods.