San Marcos, a small town in Central Texas, has become the first city in the state to ban data centers, raising questions about local governance. The San Marcos City Council voted 4-3 in June to amend zoning laws to prohibit data centers, citing concerns over resource depletion. Currently, there are no data centers planned in the city following the council's decision to block a proposed development earlier this year.
State Senator Paul Bettencourt has announced plans to challenge the ban, arguing that it violates state law, specifically House Bill 2559, which limits municipal moratoriums on property development. Bettencourt expressed confidence that the state would compel San Marcos to reverse its decision if a developer does not file a lawsuit first.
The debate over data center development in Texas reflects a division among Republicans regarding local control. Some, like State Rep. Cody Vasut, advocate for more local authority, while others, including State Rep. Helen Kerwin, have called for a temporary moratorium on new projects to conduct impact studies. Bettencourt, who supports increased state oversight, has previously pushed for legislation that allows landowners to remove property from city jurisdiction.
Governor Greg Abbott has taken a balanced approach, urging state regulators to address energy and water concerns related to data centers while promoting Texas as a hub for artificial intelligence development. Recently, he announced plans for three new data centers in West Texas and the Panhandle.