San Antonio will consider regulating data centers. It’s unclear if that involves a moratorium.

San Antonio City Council is deliberating new requirements for data centers operating within city limits. These proposals, presented by the city's Development Services Department, include restricting data centers to industrial or commercial zones, establishing a 500-foot setback from homes, schools, hospitals, and assisted living facilities, and prohibiting their construction in the Edwards Aquifer Recharge Zone. Any project not meeting these criteria would require direct City Council approval.

The council is also considering initiating a temporary moratorium on data center development for up to 180 days to allow time for comprehensive regulation. This potential local moratorium follows a statewide directive from Governor Greg Abbott, who recently issued a moratorium on new data center connections to Texas’ power grid, pending an audit by ERCOT.

The proposed rules have sparked debate among council members and stakeholders. Councilman Jalen McKee-Rodriguez (D2) voiced support for a moratorium, citing environmental and resource protection, while others emphasized economic benefits like property tax revenue and job creation for skilled trades, as highlighted by representatives from the International Brotherhood of Electrical Workers (IBEW). Deedee Belmares of Public Citizen advocated for more data on environmental impacts like noise and heat before finalizing setback requirements.

Key issues surrounding water and power usage remain unaddressed by the current zoning proposals. Councilman Ric Galvan (D6), whose district hosts numerous data centers, urged San Antonio's publicly owned utilities, CPS Energy and SAWS, to develop policies to manage these resource concerns. The city's Zoning Commission is expected to finalize updates to the Unified Development Code by September, with City Council potentially approving them in October.