A proposal to lease county-owned land in downtown Amarillo to a private data infrastructure firm has ignited a lively and necessary debate about how public assets should be used, who benefits, and what "value" really means in an increasingly digital world.
On Monday, July 14, the Potter County Commissioners’ Court heard a presentation from Michael Keough and Derek Criswell of Region 16 Education Service Center, on behalf of Duos Edge AI — a company that specializes in installing modular, secure “edge” data centers across the Texas Panhandle.
At the heart of the discussion is a 20-year lease proposal that would allow Duos Edge AI to place a small, hardened, SOC 2-compliant data pod on county-owned land next to the Santa Fe Building at 810 S. Tyler St. The company already operates one such pod behind Region 16's Bell Street headquarters and plans to install a dozen more across cities like Pampa, Canyon, Dumas, and Lubbock.
What’s Being Proposed?
Keough described the facility as a “hardened modular unit similar to a Conex box,” built to resist disruption and support continuous, secure internet routing. The pod would be placed at the center of Amarillo’s broadband infrastructure — right next to where 80% of Panhandle internet traffic already flows.
“This will be the most secure distributed data center in Amarillo — at the center of everything,” Keough told the court. “SOC 2 compliance is critical for protecting data and for attracting national clients.”
For the uninitiated, SOC 2 (System and Organization Controls 2) is a leading cybersecurity certification that validates a system's security, availability, processing integrity, and confidentiality — especially important when dealing with sensitive data, such as what schools, hospitals, and businesses generate daily.
Importantly, the Amarillo pod would link with other regional pods to form a redundant, distributed network that could help cities, schools, and businesses stay online during fiber outages — a regular problem in rural communities.
“This isn’t just about schools — it’s about uptime for everyone,” Keough said. “When entire cities go dark because of a single fiber cut, this creates backup pathways.”
A Question of Compensation
While Commissioners acknowledged the potential value of improved internet resilience, they were quick to raise practical concerns — especially around public accountability and financial fairness.
Commissioner John Coffee voiced what many taxpayers might be thinking: If a private company is making money using public land, the public deserves a cut.
“If someone’s making money off our property, we need to see a return — even if it’s small,” Coffee said. “We’ve got expenses going out. Our citizens are paying taxes. A lease, licensing agreement, whatever you call it — we just need something.”
According to Keough, the pod could hold up to 18 server cabinets, each potentially earning $1,800 per month in rental fees. But he downplayed the revenue potential, emphasizing that the site would be more of a regional infrastructure asset than a cash cow.
“This isn’t a million-dollar operation,” Keough said. “It’ll generate revenue, yes, but it’s also what enables larger companies to even consider setting up in Amarillo.”
History of the Land
Adding another layer of complexity: the land in question was originally gifted to West Texas A&M University for parking tied to a proposed downtown nursing school. That plan never materialized, and the property reverted to county ownership.
“WT doesn’t want it anymore, so now Duos wants to use it,” said County Judge Nancy Tanner. “This will be a lease, not a sale — and we still plan to allow county and city employees to park there.”
Legal Questions Still Unsettled
County Attorney Scott Brumley pointed out that Texas law typically requires counties to lease property through public auction, sealed bids, or via a broker. But he acknowledged that a licensing agreement — which might avoid some of the red tape — could be a legally viable alternative.
“There has to be some form of consideration,” Brumley said. “Even if it’s not traditional rent, there must be a justifiable public benefit.”
For now, no decisions have been made. Keough and Criswell assured the Commissioners that Duos Edge AI is open to lease negotiations and will return with a draft agreement in the next two months.
“We want this to be a win for everyone — for the county, for taxpayers, for schools and for the larger business community,” said Criswell.
What’s the Bottom Line?
This proposal sits at the intersection of public good, private innovation, and local governance. There’s no doubt the technology could bring serious benefits: stronger broadband, regional redundancy, and potential attraction of tech investment. But the debate highlights a timeless tension — when public property is in play, accountability matters just as much as innovation.
Yes, Amarillo could become more attractive to tech developers. Yes, local schools and governments could gain reliable internet access even in emergencies. But in return, citizens — through their elected officials — are right to ask: What do we get back?
