San Marcos Residents Speak Out Against Proposed Data Center

News Clip3:08University Star·San Marcos, Hays County, TX·4/17/2026

San Marcos, Texas residents are divided over a proposed AI data center, with the City Council preparing for its initial vote. Concerns primarily center on potential water scarcity, despite promises of job creation and economic benefits. The community held public hearings and information sessions to discuss the project.

zoningoppositionwatergovernment
Gov: San Marcos City Council, San Marcos Planning and Zoning Commission

The San Marcos City Council is set to hold its initial vote on a proposed AI data center, a topic that has generated significant community debate. While the San Marcos Planning and Zoning Commission previously approved a zoning change for the project after an initial denial last August, the city council's decision is still pending, with votes scheduled for February 17th and March 3rd.

Community members expressed diverse opinions at a public hearing. Texas State alumni Kaye Champagne voiced strong concerns about the city's projected water deficit by 2040, highlighting that San Marcos is already under stage-three drought restrictions. She emphasized the potential strain from additional AI data centers on water resources.

In contrast, Matthew Gonzalez, business manager for the Laborers International Union of North America, supported the initiative, citing job creation and economic benefits for San Marcos. The Data Center Action Coalition, led by SC, also held an information session to inform residents about the implications of the data centers and encourage opposition. Texas State alumni Erica Moore acknowledged the city's financial struggles but expressed reservations about the "corporate entity" potentially taking advantage and making unsubstantiated promises. The City Council's final decision is anticipated after a second round of votes.