What's Actually Being Built Near Waco Right Now

This isn't speculative chatter. There are real projects, real dollars, and real timelines attached to data center development in and around Waco as of August 2026.

Lacy Lakeview Data District (L2D2)

The most significant local announcement is the Lacy Lakeview Data District, a proposed hyperscale AI data center district on roughly 520 acres north of Waco near Elm Mott.

According to Waco Data Center Community Information, the project calls for 925 MW of capacity with an option to scale to 1.2 GW, and a Phase I target of 300 MW. Total investment is expected to exceed $2 billion at full build-out. The Lacy Lakeview City Council approved a non-binding MOU for annexation and utility services in December 2025.

Local reporting from November 2025 by Waco Bridge confirmed negotiations for a $10 billion data center and power-plant complex on this same 520-acre site, describing it as the area's first large-scale data center project.

Cipher Digital Near Riesel

In May 2026, Waco Bridge reported that New York-based developer Cipher Digital is proposing a hyperscale data center on a 300-acre site near Riesel, about 10 miles east of Waco, close to the Sandy Creek coal-fired power plant.

Residents have already raised concerns about noise, traffic, and land-use changes, which means community opposition is a real variable in the timeline for this project.

Project Merlin in McGregor

Galaxy Digital's Project Merlin is a planned campus on 500 acres in McGregor's industrial park, west of Waco and near SpaceX's rocket test facility.

According to DataCenterMap, the project expects roughly $400 million in investment to construct up to eight buildings. McGregor already has an industrial identity, which may mean fewer land-use hurdles than agricultural parcels to the north and east.

CyrusOne DFW10 in Bosque County

The most near-term milestone for Waco-area investors is the CyrusOne and Calpine Corp. DFW10 campus in Bosque County, northwest of Waco.

According to Dallas Innovates, this is a $1.2 billion hyperscale campus with a 190-MW power agreement already signed, and it's slated to be operational by Q4 2026. Construction and pre-operation infrastructure work are already underway as of this writing.

Data Center Dynamics also reports that CyrusOne's DFW17 expansion, a $375 million development, is under construction from October 2025 through December 2026, with additional phases running into 2027.

Waco-Area Data Center Projects at a Glance

What This Means for Waco Real Estate Investors

Industrial and Rural Land Near the Campuses

The most direct impact is on industrial and rural land in the project zones. Areas like Lacy Lakeview, Elm Mott, Riesel, and the McGregor industrial corridor are seeing early speculative activity in surrounding parcels.

Hyperscale campuses create demand for support uses such as contractor staging yards, logistics and warehousing, equipment suppliers, and worker services.

If you own rural tracts near these corridors, the more useful question isn't simply whether values may change. It is how the parcel's zoning, utilities, access, and proximity to a viable project affect its actual development potential.

Data centers typically require industrial or special-use zoning approvals, which makes city council agendas, planning and zoning commission hearings, and utility-service agreements important due-diligence sources for land investors in McLennan County.

Infrastructure Upgrades That Change Property Potential

Every one of these campuses is sited near existing or planned high-capacity power infrastructure.

The potential knock-on effects for surrounding property include new or upgraded substations, road widenings to handle construction traffic, and possible water and sewer line extensions where campuses are annexed into city utilities.

Other notes on infrastructure improvements in the area:  Downtown Waco’s redevelopment and real estate opportunities. 

If you own property near a proposed data center corridor, understanding what utility and road improvements are planned, and whether your parcel sits inside or outside a proposed annexation boundary, is worth verifying before making a buy-or-sell decision.

Residential and Rental Demand

Large-scale construction projects bring workers, while operating data centers bring permanent staff, contractors, and secondary service jobs.

For residential investors, areas to watch include neighborhoods with access to the northwest Waco corridor toward the Bosque County DFW10 campus, as well as areas north and east of Waco that can serve Lacy Lakeview and Riesel.

Small towns in these corridors are candidates for additional rental demand, build-to-rent projects, and small-scale multifamily activity as construction progresses. 

The 76705 ZIP code, which covers the Lacy Lakeview and Bellmead area, is particularly relevant because of its proximity to the L2D2 district. See our 76705 housing market update for Lacy Lakeview, Bellmead and Gholson.

We've been tracking market conditions in that corridor, and recent housing data can help put any potential rental-demand story into context.

Community and Regulatory Risk

Not every announced project will necessarily be built on the original timeline, and some may face meaningful local opposition.

The Riesel proposal has already generated pushback from residents over noise and community character. Future projects may face buffering requirements, noise limits, traffic mitigation conditions, or environmental review requirements before they can break ground.

Investors betting on nearby property appreciation should treat public-meeting outcomes and conditional-use approvals as material information, not background noise.

Your specific opportunity, whether it's a rural tract, an industrial parcel, or a residential rental near one of these corridors, depends on proximity, zoning, infrastructure, and timing. Other notes on infrastructure improvements:  Downtown Waco’s redevelopment and real estate opportunities. 

What You Need to Know About Buying or Selling Property in Central Texas

No Transfer Tax in Texas

One advantage of investing in Central Texas is that Texas does not impose a statewide real estate transfer tax on property sales.

You'll still have recording fees, title company charges, and other transaction expenses, but the state transfer-tax line that appears in many other states does not apply here.

Background reference: 2026 consumer guide to selling a house in Texas.

How Closings Work in Texas

Whether you're buying a rural tract near a planned data center or a rental house in north Waco, Texas closings are generally handled through a title company.

The title company performs the title search, issues applicable owner's and lender's title insurance policies, manages escrow, coordinates the closing process, records documents with the county clerk, and disburses proceeds.

For large land assemblages tied to data center development, the same basic framework applies, although due diligence on commercial and rural tracts is typically more involved than a standard residential closing. 

For more on what it costs to sell a home in Central Texas look here. 

Frequently Asked Questions

See what other buyers and sellers have experienced working with us on Google and Zillow.