Dozens of Four Points neighbors, members of the 2222 Coalition of Neighborhood Associations (2222 CONA), city officials and a representative from SB Energy attended a town‑hall on Sept. 17 to receive the latest update on the former 3M campus off River Place Boulevard.
Background and ownership
The 3M‑owned site was sold to investment firm Karlin Real Estate in 2021 and renovated in 2024. After a 2024 rebranding as Highpoint 2222, the property was marketed as a mixed‑use development with retail, housing and space for tech and life‑science tenants. Travis County records show Karlin transferred the land to SB Energy in early 2026. SB Energy builds infrastructure for AI data centers.
First tenant announced
British semiconductor maker Graphcore was named the first tenant. Jaime Carlson, SB Energy’s head of commercialization and risk, said Graphcore will use the River Place campus as its U.S. engineering headquarters to research, develop and test power‑dense chips for advanced computing and robotics. The project is being called “Project Cosmos.”
Carson noted that this investment differs from SB Energy’s typical approach, which usually involves years of permitting, fire‑department coordination and outreach to local school districts before breaking ground. She emphasized that the company is focusing on the tenant’s current needs and will engage the city if those needs change.
Zoning, water and power details
According to Carlson, the site’s zoning will remain unchanged. Noise levels will stay within existing ordinance limits, and water use is expected to be at or below the 24‑36.6 million gallons per year that 3M consumed between 2012‑18, thanks to closed‑loop chillers. Electrical demand is capped at a maximum of 50 megawatts.
Austin Water’s chief administrative officer, Heather Cooke, said the agency is reviewing a revised site plan and will likely require a water‑benchmarking application to assess projected use and identify conservation opportunities.
Utility considerations
Austin Energy’s director of local government affairs, Amy Everhart, explained that customers are not required to disclose specific electricity usage, but the utility ensures the grid can handle each customer’s demand without harming reliability or affordability for existing ratepayers. Large customers must fund any necessary engineering studies and infrastructure upgrades.
Resident concerns
Neighborhood members raised questions about wildfire risk, underground vibrations that could affect local wildlife, and whether the campus will become a full‑scale data center or remain a research and development facility. An SEC filing on Aug. 31 lists Cosmos as a data center.
“We are not here in opposition; we are here to get facts,” said 2222 CONA member Linda Bailey. She asked for clearer information on potential noise, vibration, environmental impacts, utility demand and long‑term costs for nearby schools and the preserve.
Policy context
State law passed in 2013 waives sales tax for qualifying data centers, allowing them to purchase electricity, cooling systems and related technology tax‑free. Texas House District 47 Representative Vikki Goodwin noted that the state awarded $1 billion in data‑center tax incentives in 2025, with expectations of $3.5 billion in the coming years. Goodwin called for stronger county land‑use authority and greater transparency on energy and water consumption, warning that without regulation new facilities could shift costs onto ratepayers.
Next steps
Austin City Council is working on a new regulatory framework for data‑center siting. Meanwhile, 2222 CONA is conducting a survey of Four Points residents to gather feedback on Project Cosmos; the survey remains open until Oct. 5.
Original reporting: Community Impact — Austin — read the source article.
