San Marcos, Texas, February 5, 2026
The San Marcos Planning and Zoning Commission has given the green light to a $1.5 billion data center project, known as Highlander SM-1. This decision, reached with a 6-2 vote, is part of ongoing efforts to meet the region’s growing demand for digital infrastructure. The project has faced significant community opposition, especially concerning environmental impacts. The City Council will hold public hearings to further discuss the project details, making it a pivotal moment for the local community and its development.
San Marcos, Texas
San Marcos Planning and Zoning Commission Approves $1.5 Billion Data Center Project
The San Marcos Planning and Zoning Commission has approved a $1.5 billion data center project, moving it closer to final approval. The commission voted 6-2 in favor of rezoning the 200-acre site on Francis Harris Lane to accommodate the development. This decision follows extensive public discourse, with over 100 citizens attending the meeting to voice concerns about environmental and neighborhood impacts.
Project Details
The proposed data center, known as Highlander SM-1, plans to construct multiple buildings on the site. The development is expected to invest $1.5 billion into the project. The developers have committed to working with union labor for the construction phase. Once operational, the data center is anticipated to employ approximately 20 people on-site.
Community Response
The project has faced significant opposition from local residents. Many expressed concerns about potential environmental impacts, such as water usage and heat emissions, as well as the effect on local wildlife and livestock. A group called the Data Center Action Coalition has been actively organizing educational meetings and rallies to address these issues.
Next Steps
The San Marcos City Council is scheduled to hold a public hearing on February 3, with the first reading of the ordinance on February 17 and a second reading on March 3. These meetings will provide further opportunities for public input and discussion before the project moves forward.
Background
This project is part of a broader trend of data center developments in Texas, driven by the state’s growing demand for digital infrastructure. In 2024, data centers contributed over $1.6 billion in tax revenue to the state and local governments. The San Marcos data center aims to meet the increasing demand for data processing and storage in the region.
Related Developments
In addition to the San Marcos project, other significant data center investments are underway in Texas. For instance, Microsoft is constructing a $1.5 billion data center campus in Castroville, Texas, which is expected to be completed by 2027.
Conclusion
The approval of the Highlander SM-1 data center project marks a significant step in San Marcos’ development as a hub for digital infrastructure. While the project has sparked considerable debate, it reflects the growing importance of data centers in supporting technological advancements and economic growth in the region.
FAQ
- What is the Highlander SM-1 data center project?
- The Highlander SM-1 data center project is a proposed $1.5 billion development on a 200-acre site in San Marcos, Texas, aiming to construct multiple data center buildings to meet the region’s growing digital infrastructure needs.
- What was the outcome of the San Marcos Planning and Zoning Commission’s vote?
- The commission voted 6-2 in favor of rezoning the site to allow the data center project to proceed, moving it closer to final approval.
- What are the community’s concerns regarding the project?
- Local residents have expressed concerns about potential environmental impacts, such as water usage and heat emissions, as well as effects on local wildlife and livestock. A group called the Data Center Action Coalition has been actively organizing educational meetings and rallies to address these issues.
- What are the next steps for the project?
- The San Marcos City Council is scheduled to hold a public hearing on February 3, with the first reading of the ordinance on February 17 and a second reading on March 3. These meetings will provide further opportunities for public input and discussion before the project moves forward.
- How does this project fit into the broader trend of data center development in Texas?
- This project is part of a broader trend of data center developments in Texas, driven by the state’s growing demand for digital infrastructure. In 2024, data centers contributed over $1.6 billion in tax revenue to the state and local governments. The San Marcos data center aims to meet the increasing demand for data processing and storage in the region.
Key Features of the Highlander SM-1 Data Center Project
| Feature | Details |
|---|---|
| Investment | $1.5 billion |
| Location | 200-acre site on Francis Harris Lane, San Marcos, Texas |
| Development Plan | Multiple data center buildings |
| Construction Employment | Union labor |
| Operational Employment | Approximately 20 on-site employees |
| Community Concerns | Environmental impacts, water usage, heat emissions, effects on local wildlife and livestock |
| Next Steps | Public hearing on February 3, first reading on February 17, second reading on March 3 |
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