San Marcos to reconsider stalled $1.5B data center project
News ClipAustin American-Statesman·San Marcos, Hays County, TX·1/9/2026
The $1.5 billion data center project in San Marcos, Texas is once again moving through the approval process after facing community opposition that initially stalled the project. The San Marcos Planning and Zoning Commission will consider the project, which was previously recommended for denial but then narrowly approved by the City Council in a contentious vote. The developer Highlander SM One LLC is petitioning for approval, after the previous lead developer CyrusOne withdrew due to community pushback.
zoningoppositionannouncement
CyrusOne
Gov: San Marcos Planning and Zoning Commission, San Marcos City Council
San Marcos, Texas is reconsidering a $1.5 billion data center project proposed by Highlander SM One LLC, a Fort Worth-based developer. The project faced community opposition earlier, leading to the Planning and Zoning Commission's recommendation to deny it in March. However, the City Council approved measures to annex and rezone the land, though the required supermajority was not achieved.
The project is now back in the approval process, with Highlander SM One seeking approval from the Planning and Zoning Commission. Community members, such as Torrie Martin whose family ranch borders the proposed site, have expressed concerns about the environmental impact, water usage, and rising utility costs.
Despite the opposition, San Marcos and the surrounding area may soon be home to multiple data centers, as other projects by Sabey Data Centers and CloudBurst are also in the works. Data centers are a growing industry in Central Texas, but their power and water demands are raising concerns among residents.