San Marcos City Council to Reconsider $1.5 Billion Data Center Development
December 29, 2025
A major data center project, valued at approximately $1.5 billion, is set to return to the San Marcos City Council for a crucial vote. The development's revival highlights the intense competition among municipalities in Central Texas to attract large-scale digital infrastructure investments, which promise significant long-term tax revenue and job creation but also raise concerns over resource usage and community impact.
The project, which had previously stalled in its approval process, will be back before the council for a vote on development entitlements. This procedural step is critical for the developers to secure the necessary zoning and regulatory approvals to move forward with construction. The specific timeline for the council's reconsideration was set for late December 2025, marking a pivotal moment for the proposed facility's future.
While the identity of the developer or the primary tenant has not been officially disclosed in available reports, projects of this scale typically involve partnerships between specialized data center operators, real estate investment firms, and major cloud or technology companies. The proposed $1.5 billion investment underscores the project's planned size and technological capacity, intended to serve the growing data processing demands of enterprises and cloud services.
The outcome of the council's vote will have substantial implications for the regional data center landscape. A positive decision would position San Marcos to capture a share of the booming data center market in Central Texas, a region already a major hub due to its favorable business climate and connectivity. Conversely, further delays or a rejection could see the investment diverted to neighboring jurisdictions, underscoring the high-stakes nature of such infrastructure decisions for local economies.
Source: bizjournals
