HyperDataGrid Plans Data Center Development on Former Mill Site in Lufkin, Texas

Data center developer HyperDataGrid is moving forward with plans to build a facility outside Lufkin, Texas, marking another step in the expansion of digital infrastructure into smaller cities in the southern United States. The project highlights the growing demand for high-density computing capacity driven by AI workloads, and the industry’s increasing interest in redeveloping former industrial sites.

According to local reports, HyperDataGrid is developing the data center on Highway 103 West, on the site of the former Northern Chip Mill, a 40-acre timber facility located on Ben Dunn Road. Angelina County Judge Keith Wright confirmed that the company has already secured electrical and water service agreements and has begun clearing the land for construction. Angelina County sits between Houston and Dallas, near the Texas-Louisiana border, a region that has seen growing interest from the data center industry.

HyperDataGrid, which is based in Texas, specializes in high-density liquid-cooled data centers. The company says its facilities will utilize closed-loop systems and direct-to-chip cooling technology capable of supporting up to 600kW per rack. On its website, HyperDataGrid states it can bring its 20MW facilities online within 12 months, a timeline that underscores the rapid deployment model needed to meet surging demand for compute power.

This project is not the company’s first in the region. The developer is also known to be building a 20MW facility in Parsons, Kansas. In addition, HyperDataGrid’s website lists plans for two facilities in Texas, though it provides few details on those projects. The broader Lufkin area is also attracting other developers; AmpZ is reportedly looking to build a data center campus near the city at the Southland/Abitibi Paper Mill site.

The redevelopment of former industrial sites like the Northern Chip Mill reflects a broader trend in the data center industry, as developers seek to repurpose existing infrastructure and land with available power capacity. The push into smaller markets like Lufkin also aligns with the industry’s search for lower land costs, tax incentives, and access to reliable energy, particularly as major metropolitan areas face power constraints and longer permitting timelines.