$1B AI data center project planned

LUFKIN – Public clarifications about a planned AI data center under development near the city have been issued. A data center project representing a $1.05 billion capital investment is currently being negotiated for the Southland Paper Mill site, According to a City of Lufkin press release and out news partner KETK.

The site lies outside Lufkin’s city limits but is projected to create up to 500 construction jobs over a four-year period, according to the city. If the data center project is constructed, it could create up to 30 full-time jobs. The Lufkin Economic Development Corporation told KETK News that the Denver-based company Amp Z is behind the data center plans.

Amp Z describes their company as an “AI-era digital-infrastructure platform” that combines “utility power with onsite self-generation to deliver gigawatt-scale AI data center campuses.”

The city’s press release explained that Amp Z project representatives anticipate the project would use around 500 gallons a day and not “a recently cited figure of 20 million gallons per day” which was the total capacity of the former paper mill’s water infrastructure, which the city acquired in 2009.

“Importantly, this water system was acquired by the City to serve potential industry and support job growth. It does not affect water service for the broader Lufkin community. The property is an established heavy industrial site that historically supported large-scale paper mill operations,” the city of Lufkin said. “Current redevelopment plans call for removal of obsolete structures and construction of modern, warehouse-style data center facilities consistent with the site’s historic industrial use and applicable zoning. The project offers an opportunity to revitalize a long-dormant industrial property and return it to productive use.”

Lufkin officials said they will provide updates as discussions and negotiations on this project continue.