San Marcos officials have turned down the proposal for a new data center following an extensive city council meeting that drew a large crowd. The decision came after a lengthy discussion that extended into the early hours of the morning.
On a vote of 5-2, the city council ultimately rejected the project, which had sparked significant debate among residents. The proposed data center was slated to be constructed on nearly 200 acres located near the intersection of Francis Harris Lane and Grant Harris Road, just southwest of downtown.
Supporters, including many from local labor unions, argued that the center would generate valuable jobs and increase tax revenue for the community. Numerous union members attended the meeting to express their backing for the project, emphasizing its potential economic benefits. One advocate stated, “Some jobs can carry you to the next paycheck. Projects like this can carry you to the next chapter of your life. This is the kind of project that allows a worker to get healthcare for the first time and lets a parent get their kid braces.”
However, opposition to the data center was equally vocal, with many residents concerned about the potential burden on the area’s already limited water resources and the strain it could place on the power grid. A protest organized by the San Marcos Data Center Action Coalition took place at the proposed site, where one resident expressed frustration, saying, “It’s inconceivable that I have to stand before you today and beg and plead to every single one of you elected officials to not support the building of this or any AI data center. The cost is too high; no amount of money is worth the devastating resources as precious as our waterway.”
Hays County Judge Ruben Becerra commended the council’s decision, highlighting the importance of community action in safeguarding local resources. Earlier in the month, Becerra had urged all water providers in the county to implement stringent stage 4 water restrictions, which included measures such as reducing water pumping, halting non-essential outdoor water use, and suspending permits for high-impact industrial operations.
Becerra remarked, “I was so grateful that the community came together the way they did as a unified front. We came together to protect our very limited resources, and fortunately for us, the city council heard it loud and clear.”
In light of the ongoing water crisis, Becerra has called for a moratorium on high-volume industrial water usage to ensure long-term water security for both residents and agricultural needs. He is seeking a 30-day moratorium to facilitate discussions with key water providers regarding the area’s water capacity and future growth projections.
The company behind the proposed data center, Fort Worth-based Highlander SM One LLC, has the option to submit a new application to revisit the project, although they will need to wait a period of six months before doing so.
