San Angelo Mayor Tom Thompson recently appeared on The Building Texas Show to discuss the city's strategic growth initiatives, highlighting a potential third-generation data center valued between $7 billion and $12 billion that could transform the local economy. Thompson emphasized that such large-scale industrial projects provide substantial tax revenue without the public safety or infrastructure burdens typically associated with residential growth.
"Economic development really subsidizes all the improvements that move your city forward," Thompson said, noting that the city uses performance-based 380 agreements to protect taxpayers while funding amenities like green spaces, parks, and roads. The data center represents a key part of San Angelo's strategy to attract high-value industry.
Transportation infrastructure is another critical focus. San Angelo is currently the largest city in Texas without an interstate, a status Thompson is working to change through the Ports to Plains and I-14 corridor projects. These initiatives aim to create a diagonal commerce route from Mexico to Canada, providing relief for the congested I-35 corridor. The 20-to-30-year vision also includes expansion of the San Angelo Regional Airport, supported by the Angelo State University (ASU) flight program and international training partnerships with the Canadian Air Force.
Water security is a top priority, with the city pursuing a reclamation project on the Concho River to reduce daily groundwater reliance by 40-60% through reuse. "Water is economic development," Thompson stated, emphasizing that this initiative ensures the city remains resilient regardless of rainfall patterns.
Talent retention is bolstered by ASU's over 10,000 students and its nationally recognized cybersecurity program. The synergy between the university, Goodfellow Air Force Base, and recent FBI investments creates a robust ecosystem for engineering and intelligence-based careers, helping keep local talent in the region.
Thompson encapsulated the city's outlook: "San Angelo is a can-do city. People are ready and willing to make the investment to move forward. Economic development provides the revenue to subsidize those improvements." The full interview is available on The Building Texas Show YouTube channel.
These developments position San Angelo as a competitive destination for large-scale industry and infrastructure projects, with implications for regional economic growth, job creation, and improved quality of life. Leaders in business and technology should watch San Angelo's progress as a model for leveraging strategic incentives and infrastructure investments to drive sustainable growth.

