The San Marcos City Council voted 4-3 on June 16 to adopt zoning amendments that effectively ban the construction of new data centers within city limits. City officials cited concerns regarding the significant consumption of water and energy resources by these facilities. This decision faces potential legal challenges regarding municipal zoning authority under Texas state law.
Why did San Marcos ban data centers?
The San Marcos City Council moved to restrict data center development primarily due to infrastructure strain. Members expressed concerns that the high utility demands of data centers could deplete local water and energy supplies. The move follows proposals for two data center projects located in unincorporated areas of Hays County, just outside the city’s jurisdiction.
Is the zoning ban legally enforceable?
The enforceability of the San Marcos ordinance remains a point of contention among legal observers and state representatives. Paul Bettencourt has publicly questioned the legality of the move, stating, "They should not use zoning to ban anything everywhere in the city, because that’s not lawful under the state of Texas guidelines."
Bettencourt indicated that the city’s decision would likely face legal challenges. Robert Paterson, a professor at the University of Texas in Austin, noted that there is a theoretical possibility that courts could uphold the city’s decision.
How does the "Death Star" law impact local control?
A significant hurdle for the San Marcos ordinance—and similar efforts in Hays County—is the 2023 Death Star law, which prevents local law from overriding state law. Legal experts are watching to see if the city’s zoning code will be struck down for preempting state authority.
What is the broader trend in data center opposition?
San Marcos is part of a growing national trend where local municipalities are attempting to curb the rapid expansion of data centers. Around half of US data centers planned for 2026 have been canceled or delayed.
In some jurisdictions, city councils have attempted to implement "pauses" or moratoriums on development, though these are often non-legally binding. In areas where outright bans are legally difficult to enforce, some smaller cities are making it as difficult as possible to build a data center within city limits, in order to skirt around regulations on construction bans and moratoriums.
Key Considerations
- Resource Management: The primary justification for the San Marcos ban is the preservation of municipal water and energy capacity.
- State Preemption: The 2023 "Death Star" law remains the most significant legal barrier to local zoning restrictions that deviate from state policy.
- National Context: The pushback in Texas mirrors a wider U.S. phenomenon where local government officials face increasing pressure from constituents to limit large-scale industrial infrastructure projects.