San Marcos leaders reject plans to build controversial data center

SAN MARCOS, Texas - San Marcos leaders have rejected plans to build a new data center in the city after a lengthy city council meeting.

Hundreds showed up to weigh in on the proposed center Tuesday night. The meeting went into the early morning hours. 

On a 5-2 vote, council ultimately turned the project down.

The backstory:

It was a packed house Tuesday as the city council decided the fate of a controversial data center.

If city council approved the zoning changes, the data center would be built on a nearly 200 acre plot near the intersection of Francis Harris Lane and Grant Harris Road, southwest of downtown.

Labor unions strongly support the proposal, saying it will add valuable jobs and tax revenue to the community.

Dozens of union members showed up to voice their support for the data center.

"Some jobs 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. The kind that lets a parent get their kid braces," said one supporter.

Those opposed were worried about the strain a data center would have on limited water resources and the power grid.

The San Marcos Data Center Action Coalition held a protest Monday at the future site of the proposed center.

"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 previous as our waterway," said one resident who is against the center.

Water crisis in Hays County

Dig deeper:

Hays County Judge Ruben Becerra praised the decision by council.

Earlier this month, Becerra urged all water providers to implement stage 4 water restrictions, calling for pumping reductions, halting non-essential outdoor water use, and suspending permits for high-impact industrial operations.

"I was so grateful that the community came together the way they did as a unified front. We came together to protect our resources, our very limited resources, and we benefited from the unity and, luckily for us, the city council heard it loud and clear," said Becerra.

Just days ago, Becerra called for a moratorium on high-volume industrial water use to ensure long-term water security for residents and agriculture.

"I am asking for a 30-day moratorium in commissioner's court this Tuesday. And if I get the support of the court members, I will be able to push through a summit that I will have with every water provider, major water provider in the county and assess exactly what our water capacity is per agency and what we expect in the natural future growth and how we would deal with industrial applications such as a data center," said Becerra.

What's next:

Fort Worth-based Highlander SM One LLC, who proposed the data center, could re-apply to potentially bring the data center back, but they'll need to wait six months to do so.