City of New Braunfels to amend land use ordinance in effort to deter data centers
The New Braunfels City Council is moving to amend its land use ordinances to better regulate and deter data center development within city limits. This decision comes after Mayor Michael French proposed a 90-day moratorium, which the council ultimately decided to forgo in favor of immediate ordinance amendments. The proposed changes aim to address concerns regarding water usage, electricity demand, noise, and other community impacts.
The New Braunfels City Council met on August 24 to discuss amending zoning ordinances in an effort to deter data center development. Mayor Michael French requested the item, presenting research on data center impacts and the city's legal options for regulation, citing concerns over unregulated, high-density digital infrastructure and its extraordinary demands on the Edwards Aquifer, city water systems, and local power grid. Planning Manager Matthew Simmont noted that current ordinances do not specifically define data centers, allowing them by right in intense industrial districts and with special permits in light industrial areas.
Simmont's research indicates that modern data centers' impacts, including significant water and electricity use, constant mechanical noise, and light pollution, may exceed those of traditional industrial uses. These impacts align with the city's comprehensive plan to protect natural resources, maintain neighborhood character, and reduce water consumption. Staff recommended an ordinance amendment to formally define data centers as a distinct land use, limit them to industrial districts, and require a special use overlay, allowing individual evaluation and tailored conditions by the city council.
French also suggested a two-phased legislative approach, starting with a 90-day moratorium under Texas Local Government Code, followed by permanent amendments to the unified development code and land development ordinance. He advocated for requirements such as closed-loop dry cooling, strict boundary decibel caps, acoustic walls, special use permits, grid impact studies, and developer offset fees. Councilmember Lee Edwards added suggestions like restrictions over aquifer recharge zones, quarter-mile setbacks from residential areas, and requirements for developers to provide their own water rights and pay impact fees for wastewater.
City Attorney Nathan Brown advised that a moratorium would take a minimum of 60 days to implement due to public hearing requirements. Consequently, the city council decided to forgo the immediate moratorium and directed city staff to proceed directly with preparing the ordinance amendments, which will be brought back for two readings and subsequent approval at a later date. This action positions New Braunfels to be among Texas cities proactively addressing data center growth, following examples like San Marcos which has banned them, and Comal County which has sought state guidance.