How should San Antonio regulate data center growth?

How should San Antonio regulate data center growth?

News ClipTexas Public Radio | TPR·San Antonio, Bexar County, TX·3/30/2026

San Antonio City Council is actively debating how to regulate the growing data center industry, balancing economic benefits against concerns about infrastructure strain and neighborhood impact. While some council members advocate for a light regulatory touch to encourage investment, others are pressing for stricter rules regarding zoning and utility usage. The discussion highlights the complexities of accommodating rapid technological growth within existing urban frameworks.

zoninggovernmentelectricitywater
Gov: San Antonio City Council, CPS Energy, San Antonio Water System
San Antonio City Council is engaged in a significant policy debate regarding the regulation of data center growth within the city. District 10 Councilman Marc Whyte advocates for a relatively lenient approach, emphasizing the economic advantages such as increased tax revenue, job creation, and the industry's willingness to fund necessary infrastructure. He suggests avoiding excessive barriers that could deter investment. Conversely, District 6 Councilman Ric Galvan and other city leaders are pushing for more stringent regulations. Their concerns focus on land use, the strain on utilities like CPS Energy and San Antonio Water System (SAWS), and the need for new zoning standards to protect neighborhoods, particularly where data center clusters are close to residential areas. City staff have proposed future zoning changes that could mandate buffer zones of at least 1,000 feet between data centers and homes or other incompatible land uses. Utility officials presented varied impacts: CPS Energy currently serves 21 data centers, generating $110 million in revenue, and anticipates 59 future projects requiring substantial electricity. While CPS believes it can meet near-term demand through cost-recovery contracts, future power sources may be necessary. SAWS reported that data centers currently use only 0.1% of drinking water, with increasing reliance on recycled water (75% by 2025). However, officials warned that planned projects could push the recycled water system to its capacity limits, necessitating upgrades. The overarching challenge for San Antonio is to balance capturing economic growth with safeguarding infrastructure and preserving neighborhood quality of life.