San Marcos Data Center — Meta / Hays County
San Marcos, Hays County, Texas
CRITICAL RISK
Trajectory: Denied 3 times in 12 months. Emergency drought declaration. Organized coalition with 53 data center proposals tracked across Central Texas.
Last updated 2026-03-29
The Edwards Aquifer hit record lows. The governor declared a drought emergency. And a developer asked to build a data center that would consume 70,000 gallons a day in a town fighting over every drop. San Marcos denied it three times in 12 months. The final vote came at 2:14 AM after an 8-hour hearing with 130+ speakers. The overflow room erupted in cheers.
Three denials in 12 months: P&Z in March 2025, Council in August 2025, Council again in February 2026. No data center has ever been approved in San Marcos.
Water is the kill shot. The Edwards Aquifer is at historic lows, the governor declared a drought emergency, and the facility would draw 25+ million gallons annually.
The Central Texas Water Coalition is tracking 53 data center proposals across the region. Their executive director warned a data center "could run a municipality out of water."
4,000+ petition signatures. 130+ speakers at the final hearing. A surrounding-landowner petition triggered a supermajority requirement the developer could not clear.
County Judge Becerra proposed a moratorium on industrial water users consuming over 20,000 gallons/day. It was tabled on legality grounds but is expected to return.
Inside this score
How the 100 points break down.
Each dimension is scored out of its own weight, and the four add up to the score. A higher score is a clearer market-level path; it is not a likelihood of approval for a parcel.
- Regulatory Riskweight 303 / 30
What it reads, and where it stops
Measures zoning classification, approval pathway type (by-right, CUP, rezoning), moratorium status, and regulatory trajectory. Higher scores indicate clearer regulatory paths.
Reads the written route and the stated direction of a market's rules as of the edition date. It does not read a particular parcel's zoning, and a rule recorded here can change at the next meeting of the body.
- Infrastructure Readinessweight 254 / 25
What it reads, and where it stops
Measures utility capacity, grid interconnection availability, water supply adequacy, and infrastructure investment commitments. Higher scores indicate better infrastructure readiness.
Reads the utility, grid, water and investment record for the market. It does not confirm capacity at a given site, and delivery timelines for power and water are separate from entitlement risk.
- Opposition Densityweight 251 / 25
What it reads, and where it stops
Measures organized opposition groups, petition scale, public hearing attendance, political consequences (elections, recalls), and legal challenges. Higher scores indicate less opposition.
Reads organised opposition that shows on the public record: groups, petitions, hearings, elections and legal challenges. A quiet record is not evidence of support, and a loud one is not a count of votes.
- Approval Timelineweight 200 / 20
What it reads, and where it stops
Measures historical approval durations, number of sequential approval steps, legal challenges affecting timeline, and demonstrated fast-track capabilities. Higher scores indicate faster approvals.
Reads how long recorded approvals have taken and how many sequential steps they needed. Past duration is a record of what happened, not a schedule for the next application.
3 + 4 + 1 + 0 = 8 of 100 · Critical Risk
Dimension Breakdown
Four dimensions that determine entitlement feasibility.
Regulatory Risk
30 pts
Data centers are not a permitted or conditional use in any San Marcos zone. Proposed site zoned Conservation/Cluster requiring both a Preferred Scenario Map amendment and rezoning to Light Industrial. P&Z Commission recommended denial. City Council denied twice (August 2025 and February 2026).
Score: 3/30. Data centers are not a permitted or conditional use in any San Marcos zone. The site was zoned Conservation/Cluster — requiring both a Preferred Scenario Map amendment and rezoning to Light Industrial. Three separate veto points. Three denials.
Infrastructure Readiness
25 pts
Edwards Aquifer at historic lows. Governor issued emergency drought declaration January 17, 2026. Proposed facility would consume 70,000 gallons/day, exceeding 25M gallons annually. Water supply from Crystal Clear SUD, not the city. At least 14 Central Texas counties in moderate to extreme drought.
Score: 4/25. The Edwards Aquifer — an EPA-designated sole-source drinking water supply — is at historic lows. Crystal Clear SUD's own policies warn water may be limited during extended drought. Power adjacency provides a minor offset, but water scarcity is structural.
Opposition Density
25 pts
Among the most organized opposition documented in any U.S. data center case. Three named groups: Central Texas Water Coalition (Shannon Hamilton, tracking 53 regional DC proposals), Data Center Action Coalition, Hays County Water Watchers. 130+ public comments at February 2026 hearing (2:14 AM vote after 8+ hours).
Score: 1/25. Among the most organized opposition documented in any U.S. market. Three named groups. 4,000+ petition signatures. 130+ public speakers. A landowner petition triggered the supermajority requirement.
Approval Timeline
20 pts
Denied 3 times in 12 months (March 2025 P&Z denial, August 2025 Council denial, February 2026 Council denial). Developer can refile after 6-month waiting period (earliest August 2026), but political environment unchanged.
Score: 0/20. Denied three times. The developer can refile after a 6-month waiting period (earliest August 2026), but the drought continues, the opposition is organized, and the political environment is unchanged.
Key Findings
What the record shows.
San Marcos City Council voted 5-2 to deny the Preferred Scenario Map amendment at 2:14 AM on February 18, 2026, after an 8+ hour hearing with 130+ public comments.
KUT Radio: San Marcos City Council blocks proposed data centerThe Edwards Aquifer is at historic lows. Governor issued emergency drought declaration on January 17, 2026 affecting Hays County.
Spectrum News: Hays County data center proposition receives community pushbackCentral Texas Water Coalition executive director Shannon Hamilton identified 53 data center proposals in the region.
KUT Radio: With 5 data centers on the horizon, Hays County water advocates see the fight as just beginningHays County Judge Ruben Becerra stated: "We are no longer just looking at a dry spell. We are looking at a potential catastrophe."
Hays Free Press: Hays County Judge Ruben Becerra tables water moratoriumRecorded Acts
Dated acts on the public record.
San Marcos City Council
Voted 5-2 to deny the Preferred Scenario Map amendment.
Opposition Profile
Who is organizing.
Central Texas Water Coalition (Shannon Hamilton, ED) — tracking 53 regional DC proposals
Data Center Action Coalition — organized opposition coalition
Hays County Water Watchers — water-focused advocacy group
130+ public comments at February 2026 hearing over 8+ hours
Online petition opposing data centers in the region
Timeline
How it unfolded.
March 25, 2025
P&Z Commission recommended denial of PSA amendment and rezoning.
August 19, 2025
City Council denied the zoning request (PSA amendment failed to achieve required supermajority).
January 13, 2026
P&Z Commission voted 6-2 to approve on second application attempt.
February 18, 2026
City Council voted 5-2 to deny the PSA amendment at 2:14 AM after 8+ hour hearing.
Dates on the record
Dates on the record.
As of the 29 Mar 2026 edition
No date after the 29 Mar 2026 edition is on the record for San Marcos.
Only dates that this market's own timeline gives. No outcome is named. The dated acts that have already happened are in the timeline above.
Known Risks
What could change.
Active risk factors documented in public record.
Data centers not permitted in any San Marcos zone classification
Edwards Aquifer at historic lows with emergency drought declaration
Three organized opposition groups with sustained campaign
Project denied 3 times in 12 months with no path to reversal
Recommendation
CRITICAL RISK — Score 8/100
Critical Risk. Three denials in 12 months combined with emergency drought conditions and organized opposition make San Marcos effectively blocked for data center development.
Sources
Claims cited.
San Marcos Land Development Code — Chapter 4 Zoning Regulations (Municode)
secondaryCommunity Impact: Proposed data center denied by San Marcos P&Z
secondaryKUT Radio: San Marcos City Council blocks proposed data center
secondaryCBS Austin: San Marcos City Council votes 5-2 to deny AI data center proposal
primaryCrystal Clear Special Utility District — official website
From the record
What the public record holds for San Marcos.
Each case file below is a verified public record with its sources attached; each note is a dated research note. They sit beside this market's score; they do not change it.
Case files in San Marcos
- San Marcos denied the Francis Harris Lane map amendmentData centers · San Marcos, Texas
Case files elsewhere in Texas
- Fort Worth approved FedEx truck parking for two yearsIndustrial · Fort Worth, Texas
Notes about Texas
- The cost of a data center is not in the land or the shell anymoreJurisdiction Data · 13 Apr 2026
Sector page: Data centers
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