A data center proposal has been rejected in San Marcos outside Austin, Texas.
First reported by Community Impact, Armbrust & Brown PLLC proposed a data center across two parcels of land: a 125-acre parcel already annexed into San Marcos and a 63.68-acre unzoned parcel.
The land is located at 904 Francis Harris Lane, adjacent to the Hays Energy power plant. Details of the data center were shared in agenda documents.
Plans for the data center were first announced earlier this month.
The San Marcos Planning and Zoning Commission recommended the denial of the data center applicant’s request to rezone the land and to amend the city’s Preferred Scenario Map.
The Preferred Scenario Map amendment would change the designation of the land from conservation/cluster to commercial/employment low. The rezoning request would rezone the 200-acre parcel from future development and character district 2.5 to light industrial.
The current landowners are Highlander SM One LLC and, separately, Donald and Germaine Tuff.
Michael Whellan, a representative for Armbrust & Brown PLLC, said the project would yield a tax revenue of nearly $3.02 million for the city, as well as providing tax benefits and complementing the adjacent power plant.
The facility is also currently approved for 559 living unit equivalents (LUEs) from Crystal Clear Water, a special utility district in San Marcos.
LUEs represent the typical flow that would be produced by a single-family residence or 3.5 people.
Residents expressed concerns about noise, pollution, and power consumption. In response, John Maberry, on behalf of Highlander SM One LLC, said the project would include sound attenuation panels, masonry walls, and compliance with city noise ordinances.
He added that the project would undergo a rigorous approval process with ERCOT.
It was also confirmed during the hearing that the facility would not be used for Bitcoin or as an artificial intelligence center.
The project will now need a supermajority vote by the City Council to go forward. City Council public hearings are set to take place on April 15, May 6, and June 3.
The proposal is not the CloudBurst data center, which was also proposed for San Marcos last month. CloudBurst is planning a gas-powered data center with Energy Transfer, aiming for a 2026 completion date.
San Marcos is located between Austin and San Antonio in Texas, two of the state’s largest data center markets. Austin is home to Lumen, Digital Realty, CyrusOne, DataBank, Colovore, and Cogent. Stream, CyrusOne, Microsoft, H5, CloudHQ, AWS, and Lumen all have a presence in San Antonio.
