Data centers in Hays County, Texas: 3 projects mapped

Imagery: Esri, Maxar

In Hays County, where aquifer levels have been falling for years and the governor renewed a drought disaster proclamation in February, the data center fight is about water. It came to a head in San Marcos, where Fort Worth-based Highlander SM One proposed a $1.5 billion data center on about 200 acres off Francis Harris Lane, between San Marcos and New Braunfels, next to the Hays Energy power station. Hundreds turned out; 125 people signed up for citizen comment and 57 more for the public hearing. "I ask you to envision what your future of San Marcos looks like," resident Melanie Babot told the council. "Is it one that values natural resources for people, not AI?" At 2:14 a.m. on February 18, 2026 the council voted 5-2 to deny the land use change, and the overflow room cheered.

San Marcos then went further. On June 16, after first making data centers conditional on council approval, the council voted 4-3 to prohibit them in every zoning district. Council member Lorenzo Gonzalez, who had opposed a ban in April, switched: "Ultimately, I concluded that the promised benefits remained speculative while many of the concerns raised by residents remained unresolved." Mayor Jane Hughson voted no, saying she wanted to leave the possibility open while projects still had to come before the council.

A week later, on June 23, the Hays County Commissioners Court approved Judge Ruben Becerra's resolution creating a 180-day water protection review period, during which it will not grant discretionary approvals for data centers or other high-water-use industry, and a review board to assess them. The court also petitioned Gov. Greg Abbott for a special session to give counties more power over water-hungry projects, and said it would offer data centers no tax incentives. "I am not a fan of data centers," said Commissioner Michelle Cohen. Water advocates are watching five more projects in and just outside the county, two of them in neighboring Caldwell County, that they say would draw on the Edwards Aquifer.

Every project above is drawn from public records, filings and local reporting. Each row links to what it is based on. Statuses change, so check the source date before you rely on one. Found something wrong? Write to [email protected] and it gets fixed.