Data Center Census

San Marcos, Hays County, TX

Highlander SM One data center

Also known as Mayberry data center

DeniedCouncil denied land use change in Feb 2026; city prohibited data centers in all zoning districts on 2026-06-16
  1. Rumored
  2. Proposed
  3. Approved
  4. Under construction
  5. Operating
  6. Denied

Fort Worth-based Highlander SM One LLC proposed a $1.5 billion data center on about 200 acres west of Francis Harris Lane in San Marcos, next to the Hays Energy power plant. After an earlier request failed in August 2025, the City Council denied a second land use amendment 5-2 in February 2026. In June 2026 the council voted 4-3 to prohibit data centers in all zoning districts.

Key facts

Size & schedule

Site size200 acres [2]
about 60 acres in the extraterritorial jurisdiction
Stated investment$1.5 billion [3]

Water

Water use70,000 gal/day [4]
up to; over 25 million gallons annually
Water sourceLocal aquifers [1]
Source excerpt
“a proposed 200-acre development by Highlander SM One LLC, a Fort Worth-based developer, could consume more than 25 million gallons of water annually from local aquifers”

Local decisions & site

ZoningLand use amendment requested from Conservation/Cluster to Commercial/Employment Low [2]
Source excerpt
“from 'Conservation/Cluster' to 'Commercial/Employment Low.'”

Figures are as stated by the cited source. Where sources disagree, each figure is shown.

Timeline

  1. Planning & Zoning Commission recommends denial of first land use amendment [2]

  2. City Council votes 5-2 in favor but short of required supermajority; request denied [2]

  3. Second land use amendment application submitted [2]

  4. City Council denies land use change 5-2 in early-morning vote after a motion to postpone fails [4]

  5. Motion to prohibit data centers citywide fails 3-4; data centers restricted to high industrial zones [5]

  6. City Council votes 4-3 to prohibit data centers in all zoning districts [5]

Issues raised

  • Water use during drought was the main reason cited for denial [4][6]
  • Residents raised concerns about grid strain, livestock, and environmental impacts; 182 people registered to speak at the February hearing [3][5]
  • A state senator said he would challenge the citywide ban under state preemption law [1]

Sources

  1. San Marcos becomes the first Texas city to ban data centers, testing its local control
    Texas Tribune · Jun 30, 2026 · news
  2. San Marcos council to once again consider data center
    Community Impact · Jan 15, 2026 · news
  3. San Marcos City Council blocks proposed data center
    KUT · Feb 18, 2026 · news
  4. San Marcos City Council votes 5-2 to deny AI data center proposal
    CBS Austin · Feb 18, 2026 · news
  5. San Marcos council votes to prohibit data centers in all zoning districts
    Community Impact · Jun 17, 2026 · news
  6. Hays County data center proposition receives community pushback
    Spectrum News · Feb 23, 2026 · news