Austin could treat data centers like ‘adult businesses’ under new regulations
Austin officials are developing regulations that could limit where data centers operate, potentially treating them similarly to other businesses considered undesirable in neighborhoods. City Council may vote on initial code changes in December, while a broader regulatory framework could take until 2027.
Austin city staff have proposed a two-phase regulatory framework for data centers after the City Council approved an August resolution directing officials to pursue restrictions through the land development code. The initial phase would define data centers in the city code and amend Title 4, while a later phase would address zoning, land-use standards and community engagement. Council Member Mike Siegel said large facilities could be banned by December, although a comprehensive framework may not be finalized until May 2027.
The proposal has drawn opposition from the Data Center Coalition, whose Texas government affairs leader Jess Heck argued that data centers provide jobs and tax revenue and should be governed by targeted standards rather than broad bans. City documents say Austin Energy has heard from 13 potential data center projects, none currently approaching hyperscale size, while community concerns include noise, light, pollution, water use and energy demand. The council may vote on Title 4 changes Dec. 3, with a broader framework expected for public release in early 2027.