San Antonio, Medina County continue to attract data centers

The San Antonio area and Medina County continue to attract major data center developments, with Amazon and Microsoft significantly expanding their footprints. Recent filings with the Texas Department of Licensing and Regulation indicate Microsoft plans to construct two additional data centers totaling nearly 500,000 square feet in Rio Medina, Medina County, at a cost of $56 million. Similarly, Amazon is expanding its presence with two facilities, each over 100,000 square feet, on the Southeast and West Sides of San Antonio, costing $65 million and $25 million respectively. These expansions have sparked concerns among local residents regarding the substantial demands on water for cooling and electricity for power, particularly in a region prone to drought. Noise pollution from the facilities is also a common complaint. San Antonio Mayor Gina Ortiz Jones acknowledged these concerns, stating that while data centers are coming, the city has a say in their placement and intends to consider their impact on utilities and optimal location within the city. CPS Energy and the San Antonio Water System executives informed city councilmembers about the 20-plus existing data centers and anticipated growth, expressing confidence in their ability to meet the industry's demands. Medina County Judge Keith Lutz was unavailable for comment on his county's data center growth. Pia Orrenius, a vice president at the Federal Reserve Bank in Dallas, projected that the AI boom and data center construction would position Texas as the second-largest data center market in the U.S. by 2026, after Virginia.