Austin City Council on Thursday moved to fast-track new regulations that could keep large data centers out of the city, accelerating a process that otherwise would stretch into next spring.
The unanimous vote reflects growing urgency at City Hall over hyperscale data centers, which council members say could strain Austin’s water and electric systems and disrupt surrounding neighborhoods. Because the city’s land code does not specifically regulate data centers, council members are now trying to close that gap by December amid concerns that a large facility could be built under the existing rules before new regulations are in place.
After months of discussion about how to regulate the facilities, council members directed city staffers to propose amendments to the land development code specifically addressing the data centers. Instead of waiting until spring 2027 for a comprehensive regulatory framework, they asked staff to return with an initial set of rules by December.
That would allow the council to ban large data centers from the city limits by the end of the year, Council Member Mike Siegel said.
“Until we have real regulations in place, there’s going to be this risk that certain property owners who have access to enough electricity could build a data center on their property and wouldn’t have to tell the city what they’re doing,” Siegel said.
The second phase of the effort, which would address more detailed development and environmental standards, could come in the spring.
The move comes as cities in Texas and across the country push back against hyperscale centers. Some data farms span more than 1,000 acres, sucking up hundreds of millions of gallons of water a year and burning through more than 100 megawatts of power. City officials say 100 megawatts is enough to power about 25,000 homes.
City leaders have been talking for months about regulating hyperscale data centers. At a press conference held earlier this week, some council members said they want to ban large data centers because they use too much water and power, make too much noise, use bright lighting and negatively affect neighbors.
But the city can’t ban something that doesn’t exist in city code, officials say. And there is no land use specifically for data centers. Because of that, city officials say it’s difficult for them to track which data centers exist or may be coming. Right now, they are categorized as “communications services” and are generally located in less-restrictive zoning districts.
If the City Council wants to block large data centers, it has to first define them in city code and establish development rules, design standards and operating regulations.
That would take until spring 2027, said Joi Harden, acting assistant director of the city planning department.
City Council members say that’s not fast enough. On Thursday, the group told staffers to break up the process. By December, they are expected to come back with code amendments that would dictate which data centers are allowed within the city limits.
Not all data centers are created equal. The city currently has 10 data centers that use between 1 and 20 megawatts. The new rules will account for those that already exist.
The council did not specify exactly what regulations city staff should propose. But Mayor Kirk Watson told them to pay attention to what the council has been saying.
“The members of the council individually and collectively have spoken pretty clearly about what it is they hope to see,” Watson said. “Read the room.”
Thursday’s council meeting drew dozens of people who supported efforts to regulate or ban large data centers, urging the city to protect the environment and quality of life. Local beekeeper Matt Fox said he worried about the effect data centers could have on the insect’s health.
“No bees, no plants, no food,” he said.
