The overview
City staff received a presentation regarding a request to amend the Preferred Scenario Map designation for approximately 200 acres of land on the western side of Francis Harris Lane, changing it from “Conservation/Cluster” to “Commercial/Employment Low.”
The proposed use of the land is to construct a data center. However, the current designation of “Conservation/Cluster” on the Preferred Scenario Map limits development, whereas “Commercial/Employment Low” allows for more industrial uses, according to agenda documents.
The property consists of two tracts: one is a 125.91-acre parcel already annexed into San Marcos and zoned as Character District 2.5 zoning, while the other is a 63.58-acre unzoned parcel requesting annexation.
Surrounding land uses include rural residential properties, the Hays Energy power plant, vacant or agricultural land, and a cemetery, according to agenda documents.
The agenda documents detail that the land is not on any floodplain or does not have other environmentally sensitive features. The rationale for placing a data center on the land is listed in a letter to the city:
- A data center will produce new tax revenues with limited need for city services.
- A data center will have a lower traffic footprint and produce less "wear and tear" on roads.
- This is the right location for a data center use from a planning perspective.
- The proposal is consistent with city precedent in this area and will complement the existing adjacent power plant use.
A data center, according to the Data Center Coalition, is a physical location organizations use to “house their critical applications and data.” These facilities contain essential digital infrastructure, house servers and enables the management, processing and storage of data.
Sorting out details
The proposed use of the land is to construct a data center; however, city staff and the landowners have clarified that the project is unrelated to CloudBurst, a data center that has been previously reported to come to San Marcos from other news publications.
The CloudBurst website states that construction on its San Marcos data center campus is expected to begin in the second quarter of 2025 on a greenfield site near San Marcos, which caused confusion among city staff.
A statement from CloudBurst to Community Impact states that they are not associated with the almost 200 acres of land that is being discussed at City Council and are not ready to disclose their location at this time.
City Manager Stephanie Reyes clarified that while this is the only data center the city currently has an application for, other surrounding property owners have expressed interest in developing data centers. Amanda Hernandez, director of planning and development services, further explained that while there may be other potential projects they do not have an application filed with the city at this time.
Maberry, the property owner of a tract of the land currently under discussion, said he has no knowledge of CloudBurst.
“I can tell you with 100% confidence,” Maberry said, “I don’t even know who [CloudBurst] are. ... Their press release said there’s a signed deal in place between Energy Transfer and CloudBurst. I’m not a party to anything with either of those companies anywhere. ... I couldn’t be more definitive about that.”
Alternatively, Hernandez noted that if CloudBurst is in discussions with a landowner who already has zoning, those private conversations could be happening without the city’s knowledge until the data center submits permit applications.
How it works
A Preferred Scenario Map is a citywide planning tool that outlines the city's vision for managing growth while balancing community needs, according to a city website. However, it is not the same as zoning, instead being described as a “high-level guide to assist decision-makers.”
The San Marcos City Council adopted its updated Preferred Scenario Map along with the Vision SMTX Comprehensive Plan on Oct. 15, according to previous reporting by Community Impact.
The request for a Preferred Scenario Amendment is paired with a request for a zoning change and an annexation request for the 63.58-acre parcel. At the Feb. 19 meeting, the council passed a resolution approving a service agreement in connection with the annexation and set a public hearing for the proposed annexation.
Zoning-related decisions have not yet reached the council.
If annexed, the property will be included in San Marcos’ wastewater service but will not receive city electric services, as it falls within the Pedernales Electric service area. According to Hernandez, clarification from the city's utility director noted that industrial uses typically do not have a significant impact on the wastewater system.
The next steps for this project and the Preferred Scenario Amendment process includes:
- Feb. 25: Planning and Zoning Commission public hearing
- March 18: City Council public hearing (no action)
- April 1: City Council public hearing (first reading)
- April 15: City Council ordinance reconsideration (second reading)
