San Angelo Mayor Tom Thompson recently appeared on The Building Texas Show to discuss the city's strategic growth potential, highlighting performance-based incentives, infrastructure projects, and water reclamation efforts that are positioning San Angelo as a competitive destination for large-scale industry.
Mayor Thompson emphasized the transformative potential of a third-generation data center currently under consideration for the region. Valued between $7 billion and $12 billion, such a facility would provide a massive surge in tax revenue without the public safety or infrastructure strain typically associated with residential growth. “Economic development really subsidizes all the improvements that move your city forward,” said Thompson. He noted that the city utilizes 380 agreements to ensure these projects are performance-based, protecting taxpayers while funding green spaces, parks, and roads.
San Angelo is currently the largest town in Texas without an interstate, a status the Mayor is working to change through the Ports to Plains and I-14 corridor projects. This 20-to-30-year vision aims to create a diagonal commerce route from Mexico to Canada, providing critical relief for the congested I-35 corridor. Additionally, the San Angelo Regional Airport is expanding, supported by the Angelo State University (ASU) flight program and international training partnerships with the Canadian Air Force.
Recognizing that “water is economic development,” the city is aggressively pursuing a reclamation project on the Concho River. This initiative aims to reduce daily groundwater reliance by 40-60% through reuse, ensuring the city remains resilient regardless of rainfall patterns. Thompson added, “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.”
With over 10,000 students at ASU and a nationally recognized cybersecurity program, San Angelo is focused on keeping talent local. The synergy between the university, Goodfellow Air Force Base, and recent investments by the FBI creates a robust ecosystem for engineering and intel-based careers.
The implications of these initiatives are significant for the region. The data center alone could generate substantial tax revenue without straining public services, funding improvements that benefit all residents. Improved transportation corridors would enhance commerce and connectivity, while water reclamation ensures long-term sustainability. For industries, San Angelo offers a business-friendly environment with incentives that mitigate risk, making it an attractive location for large-scale projects. The focus on education and talent retention further strengthens the workforce pipeline, benefiting employers and the local economy.
These developments underscore San Angelo's strategic approach to growth, leveraging its assets to attract investment while maintaining fiscal responsibility. The city's proactive stance on infrastructure and water security positions it as a model for other mid-sized cities seeking sustainable economic development.

