San Marcos council to once again consider data center

The recent request, submitted in October, is the second designation amendment application for the tract of land by owners Highlander SM One LLC, or John Maberry, and Donald and Germaine Tuff.

The owners hope to develop a data center on the land with an associated zoning change, according to previous Community Impact reporting.

The Preferred Scenario Map amendment would change the land’s designation from “Conservation/Cluster” to “Commercial/Employment Low.” The current designation reserves the land for future development, whereas the requested designation would enable the proposed data center’s development, according to the city’s presentation.

A majority of the land is located within city limits and currently zoned for primarily single-family residential uses. The Hays Energy Power Plant, located northeast of the land, is zoned for heavy industrial uses.

Of the approximately 200 acres of proposed land, 60 acres are located in the extraterritorial jurisdiction. An annexation case for the area of land is active.

Extraterritorial jurisdiction is the unincorporated area around a city where the city can still enforce some regulations, such as subdivisions, to allow for the planning of future growth.

The background

This is the second designation amendment request of its kind made by Highlander SM One LLC for the tract of land. The previous request was recommended for denial by the PZC in March 2025, according to previous Community Impact reporting.

The PZC’s denial recommendation created a condition that required the City Council to reach a supermajority vote of 6-1 in favor of the request to pass. The council voted 5-2 in favor of the request in August, failing to reach the supermajority and resulting in a request denial.

Citizens voiced their opposition to the potential data center during the first designation amendment request process, according to previous Community Impact reporting.

Community members continued to voice their concerns regarding the data center at the Dec. 16 council meeting. Attendees raised worries regarding the potential impact on livestock in the area, high water usage, excessive electricity usage and possible utility cost increase.

During the meeting, Maberry discussed the potential increase in jobs, tax base boost, strict environmental regulations and minimal impact on city resources.

Highlander SM One LLC developed a draft restrictive covenant designed to address community concerns regarding water usage, electricity usage and noise.

A restrictive covenant outlines regulations and limitations for a property owner put in place to maintain the value and enjoyment of the surrounding land.

The next steps

The tract of land west of Francis Harris Lane is currently zoned and entitled for the development of single-family homes. The council will address the requested designation amendment and zoning change with PZC recommendations at the following upcoming meetings:

• Feb. 3: City Council public hearing, no action
• Feb. 17: City Council public hearing and first reading
• March 3: City Council ordinance reconsideration, second and final reading