San Marcos Data Center I to Deliver First 50MW Phase by Q4 2026

NEW BRAUNFELS, Texas / HOUSTON, Texas – November 5, 2025 – CloudBurst Data Centers (“CloudBurst”) and Evolve Holdings (“Evolve”) today announced the groundbreaking of San Marcos Data Center I, a next-generation, AI-focused data center campus located in the San Marcos / New Braunfels corridor of Central Texas. The site is master-planned for up to 1.2 gigawatts (GW) of AI/HPC capacity, with the first 50MW phase scheduled to go live in Q4 2026.

The campus situated in Guadalupe and Hays Counties, placing it between Austin and San Antonio—one of the fastest-growing data center regions in the United States. CloudBurst has secured a long-term natural gas supply agreement with Energy Transfer’s Oasis Pipeline, providing up to 450,000 MMBtu per day, enough to generate more than 1.8GW of on-site power for the campus.

As CloudBurst’s flagship “GigaCenter,” San Marcos Data Center I is being designed and built by Evolve, leveraging high-density architecture, advanced cooling technologies, and behind-the-meter power to support the next wave of AI and high-density compute workloads.

A New Model for AI-Ready Infrastructure

CloudBurst’s Texas flagship campus is engineered around four core principles: speed-to-power, high rack density, integrated power, and future-ready cooling.  This combined engineered approach will help customers scale from initial megawatts to gigawatt-scale deployments in a single location.

The on-site natural gas strategy follows an emerging trend in the sector, where large AI and cloud campuses secure dedicated gas for hybrid generation to overcome transmission constraints and long interconnection queues.

“San Marcos Data Center I combines behind-the-meter natural gas generation with rapidly deployable, AI-ready design, giving hyperscale AI customers a scalable platform that can move at their pace” said Tye Johnson, CEO of CloudBurst Data Centers and Founder & CEO of Evolve Holdings, Inc. 

Evolve’s team has consistently delivered high-density compute facilities for more than 2 decades, along with modular manufacturing, energy management, and lifecycle O&M services for critical infrastructure.

“Central Texas has become one of the most rapidly expanding AI corridors in North America,” Johnson added. “This campus is situated right in the middle of that growth—between Austin and San Antonio—with the land, energy, and fiber access available to support global AI platforms.”

Designed for AI, and High-Density Compute

San Marcos Data Center I is being master-planned to serve AI, high-performance computing (HPC), and large enterprise tenants. Planned design elements include:

• Phased development that can be delivered in blocks to match customer ramp profiles.
• Support for high rack densities optimized for AI workloads.
• Dedicated, behind-the-meter power facilities using natural gas, designed to expedite power delivery and support rapid scaling.
• A roadmap for advanced cooling technologies and potential future testbeds for liquid and hybrid cooling as part of CloudBurst’s SuperLab™ concept.

“AI customers don’t just need more megawatts—they need capacity that is designed around density, resiliency, and speed-to-deployment,” said Cynthia Thompson, Executive Chair, CloudBurst. “Their role (Evolve) as design-build partner is to turn CloudBurst’s Next-Gen vision into a repeatable blueprint: standardized blocks, predictable timelines, and a lifecycle model that extends from site selection through operations and maintenance.”

Community, Resiliency, and Sustainability

The Central Texas Hill Country has emerged as a data center hotspot, bringing both economic opportunity and community questions around water, power, and land use. CloudBurst and Evolve say they are committed to working closely with local officials and stakeholders in Hays and Guadalupe Counties throughout the project.

Early planning considerations include:

• Responsible water use, with a focus on water-efficient cooling options and minimizing usage during operating conditions.
• Noise and visual screening to limit impact on neighboring properties.
• Long-term economic contributions through construction jobs, specialized technical roles, tax base expansion, and local vendor partnerships.

“We recognize that building a gigawatt-scale campus in a rural area comes with real responsibilities,” Johnson said. “Our goal is to be a long-term partner — one that listens, adapts, and builds infrastructure that benefits both our customers and the local community.”

Project Snapshot – San Marcos Data Center I

• Location: San Marcos / New Braunfels corridor, Central Texas in Hays and Guadalupe Counties.
• Total Planned Capacity: Up to 1.2GW across multiple phases.
• Phase 1: 50MW, targeted Q4 2026 go-live.
• Primary Power: Behind-the-meter natural gas generation via a long-term agreement with Energy Transfer’s Oasis Pipeline (up to 450,000 MMBtu/day).
• Use Cases: AI and HDC workloads, high-density compute environments.

About CloudBurst Data Centers

CloudBurst Data Centers is a U.S. data center developer focused on Next-Gen, AI-ready “GigaCenters” that combine advanced cooling, higher rack densities, behind-the-meter power, and rapid deployment. Its Texas Flagship campus near San Marcos, along with a planned Oklahoma City development, positions CloudBurst at the forefront of the AI/high-density compute revolution. The company’s leadership team brings more than 150 years of combined experience and has been involved in the design, master planning, and marketing of more than 200 data centers worldwide.

About Evolve Holdings

Evolve Holdings is a pioneering data center and critical infrastructure firm known for delivering end-to-end life-cycle solutions—from site selection, design-build, and modular manufacturing to power systems, operations, and long-term service. Under the leadership of founder and CEO Tye A. Johnson, Evolve has served clients across the U.S., Canada, and the U.K., helping hyperscale, enterprise, and service provider customers deploy highly adaptable data centers that are scalable and efficient with alternative approaches to traditional brick-and-mortar and modular builds.

Evolve’s portfolio includes high availability,  high-density compute facilities, critical power  generation projects, and critical facility site developments across all verticals and leading digital infrastructure brands.