Central Texas city becomes the first in state to ban data centers, testing its local control

News ClipHill Country News·San Marcos, Hays County, TX·7/2/2026

San Marcos, Texas, has become the first city in the state to enact a ban on data centers within its city limits. This move tests the city's local control and sets a precedent for other municipalities considering similar actions. The decision aims to stop the data center boom.

moratoriumgovernmentzoning
Gov: San Marcos

The city of San Marcos, located in Central Texas, has taken a significant step by becoming the first municipality in the state to ban data centers within its jurisdictional limits. This decision marks a pivotal moment, as the city leverages its local authority to curb the proliferation of data center developments.

The ban is seen as a precedent-setting move, potentially influencing other Texas cities grappling with the rapid expansion of the data center industry. By enacting this prohibition, San Marcos aims to manage its growth and development according to local priorities, testing the boundaries of local control against statewide industry trends.

This action signals a growing concern among some local governments regarding the impacts of data center growth, which can include resource consumption and land use, prompting them to explore regulatory measures.