Overview
- San Marcos’s city council voted 4–3 to amend zoning to effectively ban data center development in the city, a measure that city officials say protects local water and energy supplies.
- State Sen. Paul Bettencourt has announced he will challenge the San Marcos ban as unlawful under Texas law and plans to push for state enforcement against local bans.
- Gov. Greg Abbott has shifted to press for stricter limits on data centers and on June 10 ordered regulators to stop ratepayers from funding new grid costs while urging measures to force developers to fund infrastructure and reuse water.
- Several counties tried moratoriums this year but those pauses proved fragile after developer lawsuits, most notably Hill County rescinding its halt after a $100 million suit, highlighting legal limits on county authority compared with city zoning power.
- Public opposition is rising and could shape policy and politics: a University of Texas/Texas Politics Project poll found 56% of voters oppose local data centers and state leaders are preparing legislative proposals for the 2027 session that would require water‑efficient cooling, reporting and ending some tax breaks.