An anti-data-center sign is posted at the farm of Derek Emadi near Lockhart on June 4. City leaders later directed staff to draft stringent regulations for data centers after debating whether to ban the facilities outright.
Jay Janner/Austin American-Statesman
Another small Texas town has joined the growing number of communities considering action as data centers expand across the region and draw scrutiny from lawmakers.
Leaders in Lockhart, 30 miles south of Austin and the “Barbecue Capital of Texas,” have directed city staff to develop “very strict standards” for the resource-heavy developments after City Council members said an outright ban, while preferred, could expose the city to legal challenges.
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“I would prefer an outright ban, but I don’t know that it’s the best choice for us because of the possibility of years and years of litigation and excessive expense for the city,” District 1 Councilmember Juan Mendoza said in a specially called meeting Thursday. “What I would like to see what the city can come up with as far as guardrails — very strong guardrails that make it almost impossible for any of these centers to want to come into Lockhart.”
The decision comes after widespread community uproar over the growth of data centers in the region.
At least five data centers are planned or under construction in Caldwell County, though all are outside Lockhart. City officials have not yet approved any within the city limits. The county, with an estimated population of 55,150, is experiencing many of the same growth pressures as Austin’s other suburbs. Lockhart has about 18,100 residents.
“We are the county seat for Caldwell County, so it’s up to us to lead by example,” Lockhart resident Jesús Pantel told council Thursday.
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Data center worries
Lockhart joins several local governments studying the potential impacts of data centers and seeking to slow the industry’s growth. As demand for artificial intelligence grows, Texas has become the country’s fastest-growing data center market, drawing developers with available power capacity, incentives and open land.
Texas stands to gain billions in investment from data center development, along with thousands of temporary construction jobs. But local and state officials have raised concerns about the potential strains they could place on infrastructure in a state that’s already facing water shortages and whose power grid has struggled to keep up with growth.
A data center under construction on FM 2720 near Lockhart sits across from farmland on June 30. Five data centers are planned or under construction in Caldwell County.
Jay Janner/Austin American-Statesman
There are at least 76 projects operating or in the works between Temple and San Antonio, according to ongoing data maintained by the Austin American-Statesman, with about 5,600 megawatts currently under construction in the Austin and San Antonio metro areas.
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The Electric Reliability Council of Texas, the state’s main grid operator, said data centers will cause Texas energy demand to surge 71% by 2031.
Gov. Greg Abbott has called for a pause on data center development in rural neighborhoods. Several legislative committees are holding hearings on the issue this summer ahead of the January session, with support from lawmakers in both parties.
“The governor’s recommendations have kind of done a 180 in the last few months,” Lockhart Mayor Lew White said Thursday night.
Austin City Council will discuss water restrictions for data centers at its meeting next week, including an evaluation of how data centers use non-disclosure agreements to protecy their corporate customers.
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Taylor, about 30 miles northeast of Austin, is reevaluating its zoning code after deciding to take no action on a resident-led petition to ban the developments.
Hays County approved a roughly six-month pause on approvals for the developments after its county seat, San Marcos, decided to outright ban data centers from its zoning code. Henderson, Hill, Hood, Somervell and Van Zandt counties have all weighed data center moratoriums and made calls for either a special session or for the issue to become a top legislative priority when lawmakers convene in January.
The attempt to ban or pause data center development is tricky for local governments, many of whom lack zoning authorities or have been threatened with lawsuits, including San Marcos.
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