The applicant requested a postponement after the public hearing, but the commission denied the request. The commission then recommended the denial of two key items related to the project—one to amend the city’s Preferred Scenario Map and the other to rezone the land.
The project now moves to the City Council for consideration and will require a supermajority vote to pass.
What’s happening?
The proposed data center would span two tracts of land: a 125.91-acre parcel already annexed into San Marcos and a 63.68-acre unzoned parcel, according to previous Community Impact reporting. The landowners are Highland SM One LLC or John Maberry and, separately, Donald and Germaine Tuff, according to agenda documents.
Data centers are physical locations that organizations use to house critical applications and data, according to the Data Center Coalition. These centers require cooling to maintain temperatures and prevent equipment damage.
On March 25, the P&Z Commission held a public hearing on zoning and land-use changes tied to the project, specifically:
- Preferred Scenario Map amendment: Change the designation from “Conservation/Cluster” to “Commercial/Employment Low” for the same land.
- Zoning change request: Rezone 199.49 acres from Future Development and Character District 2.5 to Light Industrial. The land is located south of the intersection of Grant Harris Road and Francis Harris Lane.
- Provide tax benefits
- Have a low traffic footprint
- Align with city planning goals
- Complement the adjacent power plant
The construction of the data center is expected to take roughly five to seven years, according to agenda documents.
According to Maberry, he originally planned to develop a single-family home community with approximately 470 houses, but stated that poor market conditions and lack of interest from homebuilders prevented the idea from gaining traction. He emphasized that the land will be developed in some form since he works for a development company.
Additionally, the agenda documents from the applicants claim that the traffic footprint will be small because large data centers generally report having an estimated 50 employees per data center building. Michael Whellan, who works for Armbrust & Brown PLLC, on behalf of the data center applicants, stated that the project would yield a tax revenue of nearly $3.02 million for the city and $5.08 million for San Marcos CISD.
The data center is currently approved for 559 living unit equivalents, or LUEs, from Crystal Clear Water, a special utility district in San Marcos. LUEs, as defined by the city of Austin, represent the typical flow that would be produced by a single-family residence, or 3.5 people. Crystal Clear Water is currently under Stage 3 water restrictions, according to their website.
A cemetery is located in the middle of Tract 1, and Whellan explained that Maberry has owned the property for three years and has never objected to anyone seeking access, although no one has reached out to him.
Abigail Lindsey, a resident living near the proposed data center, stated that the gate to the cemetery currently has padlocks, and residents don’t have Maberry’s contact information to gain access to the area. More details about the data center, according to city documents, include:
- Electricity would be provided by the Pedernales service area.
- There are existing wastewater lines along Francis Harris Lane.
- The site is not located within the floodplain, Edwards Aquifer Recharge Zone or San Marcos River Corridor.
- The need for street maintenance and emergency services is limited.
Taking a step back
The Preferred Scenario Map is a citywide planning tool that guides development while balancing community needs. It is separate from zoning and was last updated Oct. 15, along with the Vision SMTX Comprehensive Plan, according to previous Community Impact reporting.
- Current designation (Conservation/Cluster): Discourages development over the life of the city’s Comprehensive Plan, and development that does happen has to be low impact.
- Proposed designation (Commercial/Employment Low): Allows for industrial uses, distribution centers, auto-oriented retail and lower-intensity commercial developments.
What the commissioners are saying
After the public hearing on the first item and the presentation of both items, Maberry requested a postponement to prepare a restrictive covenant related to residents’ concerns. The applicant had previously postponed the item once before.
A restrictive covenant is a provision in an agreement that limits certain uses of a property, such as water usage, according to Cornell Law School.
“When do [residents] get to ask for a postponement of this?” said Jennifer Lindsey, sister of Abigail Lindsey and resident who lives near the data center. “Why do they get to hear all of our comments, which they’ve already heard—three, we’ve had three meetings. ... I don’t think that’s fair. ... I want [the commission’s] answers tonight.”
P&Z Chair David Case moved to postpone the items, seconded by Commissioner Griffin Spell. However, the motion failed 8-1, with only Case voting in favor of the postponement.
“The applicants knew that the meeting was going to be tonight, and this is the time that they need to put their best foot forward,” Commissioner Rodney van Oudekerke said. “This is the night that they should’ve had it all together.”
Following the failure of the motion, Case moved to recommend approval of the first item—the Preferred Scenario Map amendment—to the City Council. However, commissioners raised concerns about water usage, electricity demand, noise pollution and accessibility to the cemetery located in the middle of the property.
“I don’t mind taking risks with my personal assets, but the San Marcos river doesn’t belong to me; it belongs to all of us, and we don’t get do-overs if we mess it up,” Oudekerke said. “I’m not willing to support this if there’s even the slightest chance of harming that river.”
Case argued in favor of the data center, stating that one will be built regardless, and at least within the city’s jurisdiction, officials can regulate it.
Regarding noise pollution, Maberry said the data center would include sound attenuation panels, masonry walls, and compliance with city noise ordinances.
Regarding electricity, he explained that the project must undergo a rigorous approval process with the Electric Reliability Council of Texas, or ERCOT, which has not yet confirmed how much power will be available for the site. He acknowledged that the data center would be a significant power consumer.
The commission ultimately voted against recommending approval of the first item, 8-1, with Case dissenting. The second item—the zoning change request—was also recommended for denial.
The commission’s recommendation of denial means that the City Council will need a supermajority vote to approve the items. If the City Council approves the changes, the next step would be an annexation request for the 64-acre portion outside city limits.
Public input
At a previous P&Z informational presentation in February, two speakers participated in public comment, according to a March 9 agenda document.
At the March 25 meeting, approximately 70 public comments were given by 52 unique speakers.
Commissioner Jim Garber said the meeting’s turnout was one of the largest he had seen in his 10-15 years as a commissioner.
“On Feb. 11, my sister and I came to the meeting; we were the only ones here speaking about this,” Abigail Lindsey said. “And I just want y’all to look [at all of the residents at the meeting]. In that time, the two sisters have spread the word. ... We are here because we care.”
Public comments raised concerns about electricity consumption, water usage, noise and air pollution, accessibility to the cemetery in the middle of the tracts, and the potential impact on nearby properties with agricultural exemptions.
Residents also expressed concerns about electricity usage, asking if, in the event of a power outage during a storm—like Winter Storm Uri in 2021—the data center would lose power as well, not just the residents.
Put in perspective
The number of data centers has increased over the years. The U.S. Department of Energy states that data centers consumed over 4.4% of total U.S. electricity in 2023 and are expected to consume approximately 6.7% to 12% of total electricity by 2028.
Data centers are also known for their high water usage. A lawsuit in Dallas, Oregon, against Google’s data center accused the company of using more than one-quarter of the town’s annual water consumption, according to the American Society of Civil Engineers. Data centers are ranked among the top 10 water-consuming industries, according to a study published in the journal Environmental Research Letters.
What’s next
The next meetings related to this item are as follows:
- April 15: City Council public hearing (no action)
- May 6: City Council public hearing (first reading)
- June 3: City Council ordinance reconsideration (second reading)
