New Rules Could Keep Data Centers Away From Neighborhoods And The Edwards Aquifer While Council Weighs A Temporary Development Freeze
San Antonio is preparing to tighten its rules for large data centers as City Council weighs how much control the city should have over an industry expanding rapidly across Texas.
Council members on Tuesday discussed proposed changes to the city’s Unified Development Code that would establish new limits on where future data centers could be built. The city is also considering whether to pursue a temporary moratorium on new developments while officials continue studying their effects on surrounding communities and infrastructure.
The discussion comes as concerns over data centers have grown beyond electricity demand, with residents and policymakers raising questions about water use, noise, heat, lighting, air quality and the impact of massive facilities located near residential areas.
Proposed Rules Would Create New Buffers
Under the proposal being considered, data centers would generally be directed toward commercial and industrial areas and required to maintain greater separation from sensitive properties.
One of the central provisions would create a 500-foot setback between data centers and homes, schools, hospitals and assisted living facilities. Construction would also be prohibited within the Edwards Aquifer Recharge Zone.
Projects unable to comply with the new standards could face an additional approval process before City Council.
The 500-foot buffer has already emerged as a major point of debate. Some industry representatives have argued that the distance should be reduced, while residents and environmental advocates have questioned whether 500 feet is enough to protect nearby communities.
Also Read: Greg Abbott Says Texas Data Centers ‘Dug Their Own Grave,’ Marking A Sharp Turn From His Earlier AI Push– Gina Hinojosa Calls For A Moratorium And Stronger Protections
Advocates have called for additional study of noise, light, pollution, heat and other effects produced by large-scale facilities before the city establishes permanent rules.
The proposed regulations are not final. Development Services is continuing its stakeholder process before the amendments move through the city’s zoning review and ultimately to City Council. The city says the current effort grew out of calls for a broader examination of data center growth, particularly as large developments have expanded on San Antonio’s West Side.
Moratorium Remains on the Table
Council members are separately considering whether San Antonio should temporarily stop certain new data center development while permanent regulations are developed.
Texas law allows municipalities to establish building permit moratoriums, but the process requires public notice and hearings and takes roughly three months to implement, according to the city.
Any local pause would also have limits. Projects that have already reached certain stages of development or utility planning could potentially continue moving forward, meaning a moratorium would not necessarily stop every data center project already in the pipeline.
Councilman Jalen McKee-Rodriguez said the city should take stronger action to protect residents and natural resources as the industry expands.
“Data centers are one of the largest, fastest-growing threats to our communities,” McKee-Rodriguez told local news outlets. “We have to do everything in our power to protect our access to natural resources, to preserve the land and environment that we rely on, and to mitigate the impacts of these data centers in our communities.”
San Antonio Debate Mirrors Statewide Fight
San Antonio’s discussion is unfolding as Texas takes a harder look at the explosive growth of data centers statewide.
On Aug. 3, Gov. Greg Abbott ordered the Public Utility Commission of Texas and ERCOT to audit data center projects seeking access to the state power grid before allowing them to move forward. Abbott directed regulators to examine electricity and water demand, cooling systems, tax incentives, ownership and steps developers are taking to reduce impacts on surrounding communities.
The order applies to projects moving through ERCOT’s interconnection process rather than every data center development in Texas.
Democratic gubernatorial nominee Gina Hinojosa, who recently discussed data centers and utility costs with the San Antonio Observer, has argued that state leaders allowed the industry to expand too quickly before imposing stronger safeguards.
That leaves San Antonio facing its own version of the statewide data center debacle.
City officials are expected to continue refining the proposed zoning changes before they reach City Council for possible final approval this fall.




