Zoning authority could be the answer to data center woes, as San Marcos becomes the first Texas city to ban data centers

Date:
Wed, 01 Jul 2026 21:05:00 +0000

Description:
Zoning laws could help ban data centers in Texas cities, but there is state legislation that might get in the way

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter San Marcos councilors have approved new zoning laws that ban data centers The same zoning laws could be used by 352 cities across Texas But there are a few hurdles to jump through before anyone can celebrate San Marcos may have just answered the main question surrounding data center construction in US cities - how do we
prevent it?

Well, it turns out that simply defining what a data center is and then excluding their construction from zoning codes may have been the answer
cities across the US have been looking for. That is exactly what the San Marcos City Council did, voting 4-3 on June 16 to ban the construction of
data centers within the city limits on the basis that they would deprive the local population of water and energy resources. Latest Videos From Watch full video here: San Marcos bans data centers The San Marcos City Council feared that new data centers would encroach on the city limits, with two new
projects being proposed just outside of the city in unincorporated parts of Hays County.

Banning data centers at the county level is a hurdle multiple councilors have attempted to jump across the US with little effect a problem Hays county councilors have encountered following the introduction of a non-legally binding data center development pause. You may like A Californian city just became the first to permanently ban data centers Maine becomes first US state to pass data centre construction ban Seattle votes for year-long ban on new
AI data centers

San Marcos may be a case to watch, as it will likely see opposition from data center development groups and legal challenges from representatives such as state Sen. Paul Bettencourt, who commented on the city councils decision stating, They should not use zoning to ban anything everywhere in the city, because thats not lawful under the state of Texas guidelines. [A ban] doesnt work here, and this will get challenged.

There are other cities in Texas with similar levels of control over zoning 352 to be exact that will be following the legal challenge against this ruling closely because, if it is successful, it will set a precedent for
other cities across the state to ban data centers within city limits. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting
your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.

The experts certainly believe that the San Marcos moratorium could pass, with Robert Paterson, a professor at the University of Texas in Austin stating, theoretically, I think the courts could uphold it.

But the main obstacle to both San Marcos ban and the wider Hays County pause is the 2023 Death Star law, which prevents local law from overriding state law.

Elsewhere in the US, both representatives and citizens are using whatever action they can take to oppose local data center construction projects , with around half of US data centers planned for 2026 canceled or delayed . Local councilors are losing their jobs after approving data center projects against their constituents wishes, and data centers will be a key issue during the upcoming midterm elections.

Smaller cities with less power to control zoning are instead making it as difficult as possible to build a data center within city limits, rather than banning them outright, in order to skirt around regulations on construction bans and moratoriums .

Via Texas Tribune Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.



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