San Antonio Just Changed How Data Centers Are Built
By DeeDee Belmares
People across Texas who live near data centers have raised several concerns and want a say in where they go. On Oct. 29, San Antonio gave them one, and it’s a real win for transparency, and here’s how it happened.
How we got here
The San Antonio City Council voted 9-2 to require approval for every new data center, exactly one year after District 6 Council Member Ric Galvan asked the city to explore ways of managing data center growth. Galvan’s district has the highest concentration of data centers of any other part of the city, and residents there kept raising concerns about noise, lighting, water and power demands. In August, Galvan called for a temporary 180-day moratorium. Still, most of his colleagues preferred to work through the Unified Development Code (UDC), the city’s rulebook for where development can happen and what it must look like.
The options
City staff first proposed letting data centers be built by right in commercial and industrial zones if they met certain standards, with no council vote or public hearing. But that recommendation didn’t match Galvan’s intent for regulating growth, because he wanted a specific use authorization (SUA). Four ideas were on the table the day of the vote:
- Staff’s by-right proposal
- The SUA, with council reviewing each project
- Mayor Gina Ortiz Jones’ plan, pairing standards like 1,000-foot setbacks with an SUA (failed 6-5)
- A Zoning Commission compromise backed by Councilman Marc Whyte (failed 6-5)
Council then approved the SUA 9-2. District 10 Council Member Marc Whyte and District 9 Council Member Misty Spears voted no, arguing it would stifle investment in the city.
What changed
Council adopted Whyte’s definition of a data center, covering facilities used mainly for cloud computing, AI, or other high-performance computing. It also unanimously added a provision letting members weigh distance from the UNESCO World Heritage Sites on the South Side. Data centers can now go only in commercial or industrial zones. More importantly, residents will now be alerted if a data center is proposed near their neighborhood and can oppose it before a council vote.
Not everyone agreed. Construction workers and electrical workers from the International Brotherhood of Electrical Workers packed City Hall and pointed to the jobs and tax-revenue benefits of data centers. In contrast, residents pointed to pollution and home values as reasons to support the SUA.
Going Forward
Gov. Greg Abbott and his administration have been slow to respond to, or at least have been seen as taking ineffective, performative steps in responding to, the data center backlash. The new governor has pledged to tackle the issue. Until then, San Antonio has shown other cities they have options to protect communities from data centers encroaching on their way of life and consuming critical resources like clean air, energy and water.