San Marcos, Texas, February 5, 2026
The San Marcos Planning and Zoning Commission has approved measures for a $1.5 billion data center project, despite significant community opposition. Concerns raised at an eight-hour meeting include environmental impacts and potential water shortages. The city council will hold further discussions on the project next month as developers hope to create construction jobs and facilitate digital infrastructure development in the region.
San Marcos, Texas: $1.5 Billion Data Center Project Advances Amid Community Debate
San Marcos, Texas – A proposed $1.5 billion data center project has moved forward in San Marcos, despite ongoing community opposition. The San Marcos Planning and Zoning Commission voted 6-2 in favor of rezoning measures necessary for the development, following an extensive eight-hour public meeting.
Project Details
The Highlander SM-1 Data Center plans to construct a multi-building facility spanning 200 acres on Francis Harris Lane. The project aims to invest $1.5 billion into the development, with each of the five proposed buildings designed to deliver 76 megawatts of power capacity. While the exact number of permanent jobs remains undisclosed, the project is expected to create numerous temporary construction jobs during its development phase. The developers have committed to working with union labor on this project.
Community Concerns
Over one hundred residents attended the meeting to voice concerns about the project’s environmental and neighborhood impacts. Issues raised included potential water shortages, increased electricity costs, and the effect on local livestock. The Data Center Action Coalition, a group of concerned citizens, has been actively organizing educational meetings and rallies to address these concerns.
Regulatory Process
This marks the second attempt by the developers to gain approval for the data center. A similar proposal was voted on in March of the previous year but was rejected. In August, the City Council voted in favor of rezoning, but the decision lacked the supermajority required for approval. Since the council did not formally deny the proposal, the developers were able to refile the same proposal, bypassing the one-year waiting period. The Planning and Zoning Commission’s recent vote is a significant step forward in the approval process.
Next Steps
The San Marcos City Council is scheduled to hold a public hearing on the data center project on February 3, with the first reading of the ordinance set for February 17 and a second reading on March 3. These meetings will provide further opportunities for public input and discussion regarding the project’s future.
Background Context
Data centers are large-scale facilities that house computer systems and associated components, such as telecommunications and storage systems. They are essential for supporting the digital infrastructure of modern economies. The proposed data center in San Marcos is part of a broader trend of significant investments in data infrastructure in Texas. For instance, Microsoft is planning a $1.5 billion data center campus in Castroville, Texas, just outside San Antonio, with construction underway through 2027.
As the demand for digital services continues to grow, the development of data centers is expected to increase, bringing both economic opportunities and challenges related to environmental and community impacts. The San Marcos project exemplifies the balancing act between fostering technological advancement and addressing local community concerns.
FAQ
What is the Highlander SM-1 Data Center project?
The Highlander SM-1 Data Center is a proposed $1.5 billion development aiming to construct a multi-building facility on 200 acres in San Marcos, Texas. The project plans to invest in five buildings, each designed to deliver 76 megawatts of power capacity.
What are the community concerns regarding the project?
Residents have expressed concerns about potential water shortages, increased electricity costs, and the impact on local livestock. The Data Center Action Coalition has been actively organizing to address these issues.
What is the current status of the project’s approval process?
The San Marcos Planning and Zoning Commission voted 6-2 in favor of rezoning measures necessary for the development. The San Marcos City Council is scheduled to hold a public hearing on the project on February 3, with the first reading of the ordinance set for February 17 and a second reading on March 3.
How does this project fit into the broader trend of data center development in Texas?
The San Marcos project is part of a broader trend of significant investments in data infrastructure in Texas. For example, Microsoft is planning a $1.5 billion data center campus in Castroville, Texas, just outside San Antonio, with construction underway through 2027.
What are the potential benefits of the data center project for San Marcos?
The project is expected to create numerous temporary construction jobs and contribute to the local economy. The developers have committed to working with union labor on this project.
Key Features of the Highlander SM-1 Data Center Project
| Feature | Details |
|---|---|
| Investment | $1.5 billion |
| Location | 200 acres on Francis Harris Lane, San Marcos, Texas |
| Number of Buildings | Five |
| Power Capacity per Building | 76 megawatts |
| Job Creation | Numerous temporary construction jobs; permanent job count undisclosed |
| Developer Commitment | Collaboration with union labor |
| Community Concerns | Potential water shortages, increased electricity costs, impact on local livestock |
| Approval Status | Planning and Zoning Commission approved rezoning; City Council hearings scheduled |
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