Barrio Energy Data Center in Tyler
While major tech giants like Google and Meta are dropping multi-billion dollar “hyperscale” data center campuses across Texas, Tyler’s current development footprint is focused on a highly targeted, mid-sized project right near downtown.
The primary development making waves in Tyler is the **Barrio Energy Data Center** project.
The Barrio Energy Project: “Project Rose”
Rather than breaking ground on a massive rural plot, Barrio Energy acquired a historic property located at 1105 W. Erwin St. (just west of downtown Tyler) to rehabilitate it into a specialized facility.
* The Site: Built originally in 1947 as an auto repair shop, the property is being completely retrofitted into an industrial digital infrastructure hub. It encompasses about 8,000 square feet of warehouse and office space.
* Power Capacity: The facility is designed for 12 Megawatts (MW) of power capacity. For context, while this is considered a mid-sized data center compared to giant 1,000+ MW hyperscale facilities, 12 MW is still a hefty draw, capable of powering roughly 2,400 homes at peak usage.
* Grid Connection: The site is tied directly into the ERCOT grid and is targeting large-scale energy users, high-density computing, or potentially demand-response programs (where the facility can dial back power usage to help stabilize the local grid during peak summer or winter strains).
* Economic Advantage: Because the property sits within an designated Opportunity Zone, the project benefits from specific federal tax incentives designed to stimulate economic development and job creation in distressed or historic areas.
Where Tyler Stands in the Texas “Data Center Boom”
While the 12 MW downtown facility is a significant step, regional economic voices have been discussing whether Tyler should push harder for the massive, multi-billion-dollar campuses popping up elsewhere in the state (like Waco’s recently proposed $10 billion project).
Tyler has excellent access to major fiber optic corridors and proximity to East Texas natural gas infrastructure—which is increasingly attractive to developers who want to generate their own power on-site rather than waiting for over-taxed electrical grid connections. However, a major expansion would require heavy infrastructure investments in local power capacity.
The Regional Pushback
It is worth noting that the sudden explosion of data centers across Texas has triggered a massive wave of statewide and local scrutiny. Texas Agriculture Commissioner Sid Miller—who frequently speaks to local media in the Tyler area—recently proposed a temporary statewide moratorium on new data center developments.
The concern from rural and mid-sized communities largely centers around water consumption used for cooling servers and the immense strain on the electric grid, leading several neighboring North and East Texas counties to consider pauses or stricter regulations on future large-scale projects. Barrio’s project, being a smaller-scale urban retrofit, avoids many of the massive land-use battles seen in more rural parts of the state.
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