A proposed AI data center project in Hutto will no longer move forward after the developer, Zydeco Development, withdrew its request to rezone roughly 40 acres of land, city officials confirmed.
The Austin-based company had sought to rezone property at 450 Ed Schmidt Boulevard from multi-family residential to heavy industrial use to accommodate the project.
The request was formally withdrawn ahead of a scheduled Planning and Zoning Commission meeting on April 20. With the application pulled, that meeting has now been canceled and no further action is required from city leaders.
The proposed development—sometimes referred to as “Project Hutto”—would have included a data center facility of roughly 225,000 square feet with significant power capacity.
Some city officials had already expressed concerns about the project prior to its withdrawal. Hutto’s Director of Development Services, Howard Koontz, recommended against approving the rezoning, saying it did not align with the city’s long-term growth plans.
“Our comprehensive plan reflects the community’s vision for how Hutto should grow,” Koontz said. “As submitted, this proposal was not consistent with that vision.”
The rezoning request would have required amendments to both the city’s Future Land Use Map and its SOAR 2040 Comprehensive Plan—changes that typically face additional scrutiny from staff and elected officials.
The withdrawal also follows organized opposition from residents. Community members raised concerns about placing heavy industrial zoning near existing neighborhoods, as well as potential impacts on infrastructure and quality of life.
Some residents also filed formal protests, which under Texas law could have triggered a requirement for a supermajority vote by the City Council if the case had moved forward.
With the rezoning request now withdrawn, the proposed AI data center will not move ahead as planned.
City officials say they remain committed to what they describe as “responsible, community-driven growth” and will continue evaluating future development proposals through the established planning process.
