
San Marcos City Council faces a pivotal decision on a $1.5 billion data center proposal amid recent debate over growth, water use and industrialization impacts.
SAN MARCOS, Texas — A $1.5 billion data center proposal that has divided San Marcos residents is back before a city council meeting on Tuesday, marking a pivotal step in a yearslong fight over growth, water use and industrial development.
The nearly 200-acre project, planned near Francis Harris Lane, stalled last year after council members failed to reach the supermajority needed to approve a rezoning request that would allow a large data center campus on land now mapped for future development and low-density uses. The setback sent the developer back to the Planning and Zoning Commission to restart the process.
Last month, the commission voted to recommend rezoning the property for data center use, clearing the way for the proposal to return to the council agenda. The project calls for a multi-building data center campus on roughly 200 acres off Francis Harris Lane.
Developers say the facility would rely on a closed-loop, water-based cooling system that would use up to 75,000 gallons of water each day and is designed to recycle that water rather than discharge it. They also say sound from the site would be limited to about 75 decibels at the property line through the use of enclosures and other noise-mitigation measures.
Supporters -including labor groups and some local officials- argue the data center could bring construction and tech-related jobs, along with millions of dollars in future property tax revenue for San Marcos.
Opponents, many of whom live near the proposed site, say the project would strain local water supplies, increase demand on the electric grid and accelerate the industrialization of a historically rural area.
Tuesday’s meeting includes a public hearing and a first reading of the rezoning ordinance tied to the data center plan, according to city notices. If the measure advances, a second and final reading is expected on March 3, when council could ultimately approve or reject the project.