San Marcos becomes the first Texas city to ban data centers, testing its local control

News Clip0:33KVIA ABC-7·San Marcos, Hays County, TX·7/3/2026

San Marcos, Texas, has become the first city in the state to ban data centers within its city limits. The City Council voted 4-3 to redefine data centers in its zoning laws, making them ineligible for any part of the city. This decision was driven by concerns over potential water and energy resource depletion from the local community.

zoningelectricitywatergovernment
Gov: San Marcos City Council

San Marcos, Texas, has made a landmark decision, becoming the first city in the state to implement a ban on data centers within its municipal boundaries. The San Marcos City Council, in a 4-3 vote on June 16, officially redefined data centers in its zoning regulations, effectively making them ineligible for development anywhere within the city.

The council's decision was primarily motivated by concerns that such developments could significantly strain and funnel critical water and energy resources away from the local community. Although there are currently no data center projects proposed within San Marcos city limits, at least two data center proposals exist in the surrounding region.