San Marcos to reconsider stalled $1.5B data center project

San Marcos to reconsider stalled $1.5B data center project

News ClipAustin American-Statesman·San Marcos, 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
Protesters arrive at City Hall after marching through San Marcos in August to rally against proposed data centers and their environmental impacts. After initially failing to achieve a required supermajority, the proposed data center campus is once again moving through the approval process. SAN MARC