'Prefer an outright ban': Small Texas town weighs data center restrictions amid industry growth
Lockhart City Council in Texas has directed staff to draft stringent regulations for data centers, after debating an outright ban due to potential legal challenges. This decision follows widespread community opposition and concerns over infrastructure strain, particularly electricity and water, as data center development rapidly expands across the region.
The Lockhart City Council in Texas has instructed city staff to develop stringent regulations for data centers, considering a ban but ultimately opting for strict standards to avoid potential legal challenges and extensive litigation costs. Council Member Juan Mendoza expressed a preference for an outright ban but cited concerns about legal exposure.
This move comes amid growing public opposition to data center expansion in the region. At least five data centers are planned or under construction in Caldwell County, though none are within Lockhart city limits yet. Residents, like Jesús Pantel, have urged city leaders to set an example for the county. The issue of data center growth has become a statewide concern, with Governor Greg Abbott calling for a pause on developments in rural areas and legislative committees conducting hearings ahead of the 2027 session.
Other local governments are also addressing the issue: Austin City Council is discussing water restrictions for data centers, Taylor is reevaluating its zoning code, and Hays County approved a six-month moratorium on data center approvals. San Marcos outright removed data centers from its zoning code, while Henderson, Hill, Hood, Somervell, and Van Zandt counties have also weighed moratoriums. Concerns revolve around the strain on the state's power grid, which ERCOT projects could see a 71% surge in demand by 2031 due to planned data centers, and existing water shortages.