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Corpus Christi Data Center Refuses to Make Usage Data public, Avoids taxes

Posted on 6/15/26 at 7:19 am
Posted by UltimaParadox
North Carolina
Member since Nov 2008
52628 posts
Posted on 6/15/26 at 7:19 am
quote:

Corpus Christi faces an ever-deepening water crisis, in response to the Observer’s public information request, the city is refusing to release the latest 2026 records of the mine’s water usage. The city is appealing the Observer’s request for those records to the Texas Office of the Attorney General, citing a section of the Texas Utilities Code that allows nondisclosure of an individual customer’s account. That’s a change from just last year, when the city provided water-usage records.


quote:

The city’s crisis has made state and national headlines amid predictions that its water demand could exceed supply as early as next summer without additional rainfall or some other water source. With drilled wells already dry and a hot-button desalination plant tabled for now, the city is readying itself for a more serious potential Level 1 Water Emergency, which would impose even more restrictions and penalties for exceeding limits. Residents already have been living under water restrictions since December 2024, curtailing activities like lawn watering and car washes. The next phase, which might come as early as December, would enforce a mandatory 25-percent reduction for residents, businesses, and large industrial users like petrochemical refineries.


quote:

As the Observer previously reported, the city was promised millions of dollars in tax revenue for what was originally a pair of 300-megawatt-capacity Bitcoin mines developed by the Dallas-based Bootstrap Energy. A 2022 presentation by then-Assistant City Secretary Andrea Gardner predicted revenues of $32 to $50 million over a 10-year period in exchange for the city’s de-annexation of the property, a decision that would enable Bootstrap to escape more than $70.5 million in franchise fees and sales tax on its electricity use.


quote:

From February 7, 2023, to January 8, 2025, mine operators paid the city just $2,639 in Payments in Lieu of Taxes fees, according to records previously obtained by the Observer via the local resident’s records request.


quote:

The most recent records obtained by the Observer through a public information request and a separate request indicate that the city invoiced mine operators in November 2025 for $1,631.65, and that operators paid $1,647.97 on March 6, well after the due date. Operators paid just $16.48 in April.


quote:

Now, as the city stares down a water emergency, Barrera told the Observer he’s considering asking the council to terminate the mine’s 2024 IDA prior to its end date in 2039 because the agreement hasn’t yielded the original revenues promised to the city. “Of course ’24 seems like a lifetime ago, with the year that we’ve been having with regard to water,” Barrera told the Observer. “If they’re using the water, they’re using the water, but my challenge is that we haven’t seen the return on the revenue from the IDA.”


quote:

We need to just do our due diligence. We know that these types of companies, that they use a lot of water, and we should have been more mindful of that instead of just listening to what they had to say,” she said.


Tale as old as time, give X tax breaks to a company. They weasel out of basically all commitments and the public is on the hook to pay the bill.

Texas Observer Source
Posted by ErectileReptile
Member since Jan 2016
523 posts
Posted on 6/15/26 at 7:21 am to
Corporate welfare. The republican way.
Posted by Philzilla2k
Member since Oct 2017
12938 posts
Posted on 6/15/26 at 7:26 am to
quote:

The republican way.

And you know the political affiliation of the Mayor and city council how?
Posted by wadewilson
Member since Sep 2009
41761 posts
Posted on 6/15/26 at 7:30 am to
If I was dictator for a day, that company would be purchasing the home and business of everyone affected for 25% over fair market value, and they'd pay for moving expenses for anyone who wanted to leave.
Posted by Trevaylin
south texas
Member since Feb 2019
11186 posts
Posted on 6/15/26 at 7:37 am to
mayor/city is leftist democrates
Posted by Tiger Prawn
Member since Dec 2016
25970 posts
Posted on 6/15/26 at 7:45 am to
quote:

Corporate welfare. The republican way.
As opposed to the democrat way of food stamps, section 8, and illegal immigrant welfare.
Posted by ragincajun03
Member since Nov 2007
29432 posts
Posted on 6/15/26 at 7:46 am to
This whole data center/AI “race” is probably going to end up causing more problems than creating solutions.

Just my overly pessimistic view with how it’s looking so far in its infancy.
Posted by MobileJosh
On the go
Member since May 2018
1330 posts
Posted on 6/15/26 at 7:46 am to
Never could stay sober there
Posted by notsince98
KC, MO
Member since Oct 2012
22139 posts
Posted on 6/15/26 at 7:56 am to
quote:

Just my overly pessimistic view with how it’s looking so far in its infancy.


In no way are data centers in their "infancy." They have been around since the 1980s. AI data centers are no different than any other data center other than the electrical loading is very volatile but that becomes a power quality issue and isn't really any different than traditional power demand and water issues.
Posted by UltimaParadox
North Carolina
Member since Nov 2008
52628 posts
Posted on 6/15/26 at 7:58 am to
quote:

This whole data center/AI “race” is probably going to end up causing more problems than creating solutions.

Just my overly pessimistic view with how it’s looking so far in its infancy


I dont think businesses lying about tax revenues and job creation is anything new to get tax breaks.

The difference is clearly in the outsized impact of regular citizens anywhere near the location.

Everything is always passed on to the public to absorb for the mistakes of their elected officials
Posted by mule74
Watersound Beach
Member since Nov 2004
12904 posts
Posted on 6/15/26 at 8:28 am to
I have tentatively started working on the insurance for a desalination construction project in Corpus.
Posted by sledgehammer
SWLA
Member since Oct 2020
7406 posts
Posted on 6/15/26 at 8:33 am to
I was reading awhile back that there was a lot of friction as to where they’d dump the salt. The area will be devoid of life whether they choose a place in the bay or on land. It will make some people pretty angry.
Posted by Barbellthor
Columbia
Member since Aug 2015
11338 posts
Posted on 6/15/26 at 8:51 am to
quote:

Corporate welfare. The republican way.

As opposed to NGOs, i.e. corporate welfare, and also welfare, the democrat way.
Posted by soccerfüt
Location: A Series of Tubes
Member since May 2013
75188 posts
Posted on 6/15/26 at 8:52 am to
quote:

If I was dictator for a day, that company would be purchasing the home and business of everyone affected for 25% over fair market value, and they'd pay for moving expenses for anyone who wanted to leave.
Why do that?

Just make the company make everyone there whole for the past, present & future as to water supply.

The populace elected folks who made a shitty tax deal; that’s not the company’s fault. If there was/is anything illegal as to the deal or how the company is paying its bills or operating, prosecute those responsible for the illegalities.
Posted by Clockwatcher68
Youngsville
Member since May 2006
8114 posts
Posted on 6/15/26 at 9:11 am to
quote:

Corporate welfare. The republican way.


Big pharma says hi. Boggles the mind that so many still fall for the red vs blue psyop.
Posted by TigerBear1971
Member since May 2026
215 posts
Posted on 6/15/26 at 9:19 am to
quote:

The populace elected folks who made a shitty tax deal; that’s not the company’s fault. If there was/is anything illegal as to the deal or how the company is paying its bills or operating, prosecute those responsible for the illegalities.

Seems they made a favorable deal to their understanding. And the matter isn't criminal, but civil, which the Data company knows. If you're a Big Data shill, just say so.
Posted by bluedragon
Birmingham
Member since May 2020
9671 posts
Posted on 6/15/26 at 10:08 am to
Democrat way is Communism. Give it a rest.
Posted by Bigdawgb
Member since Oct 2023
4311 posts
Posted on 6/15/26 at 10:08 am to
quote:

Corporate welfare. The republican way.

It's been the way of Congress as a whole for 50 years now.

Can we not just agree that corporate welfare is shitty without shoehorning in the tired old refrain of "my side good other side bad"?

Posted by LemmyLives
Texas
Member since Mar 2019
16613 posts
Posted on 6/15/26 at 10:12 am to
quote:

hot-button desalination plant tabled

I guess they don't want water. I'd call them retarded, but given the area, we already knew they were predominantly leftists.
Posted by KamaCausey_LSU
Member since Apr 2013
17754 posts
Posted on 6/15/26 at 11:01 am to
quote:

I was reading awhile back that there was a lot of friction as to where they’d dump the salt. The area will be devoid of life whether they choose a place in the bay or on land. It will make some people pretty angry.

Couldn't they send it out offshore into the Gulf through a pipe with a diffuser?
This post was edited on 6/15/26 at 11:02 am
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