This Texas town shot down a proposed $1.5B data center project

This Texas town shot down a proposed $1.5B data center project

News ClipAustin American-Statesman·San Marcos, Hays County, TX·2/18/2026

The San Marcos City Council voted 5-2 to deny a preferred scenario map request for a proposed $1.5 billion, 200-acre data center campus by Highlander SM One LLC. The project faced strong community opposition, with hundreds of residents protesting the plan during a heated city council meeting that lasted nearly 9 hours.

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Gov: San Marcos City Council
San Marcos, Texas residents successfully protested and voted down a proposed $1.5 billion data center project. After a heated city council meeting, the council rejected the project's annexation and rezoning, citing concerns over water usage and its impact on the local community. The decision marked a reversal from the council's earlier approval, as residents, including those living near the proposed site, strongly opposed the data center due to its water and power demands. This outcome reflects growing tensions over data center development in Central Texas, where officials have proposed moratoriums to study the effects on local resources.