AUSTIN, Texas — Austin city leaders are considering new regulations for data centers as officials prepare for the possibility of much larger facilities seeking to develop in the city.
Austin currently has 10 data centers, ranging from 1 to 20 megawatts of electricity demand. None meet the state’s definition of a “large-load” customer, which begins at 75 megawatts, but Austin Energy has received inquiries for projects ranging from 20 to 74 megawatts.
RELATED| Austin City Council approves first step toward oversight of large water users
City staff said the industry is changing rapidly, with some hyperscale data centers elsewhere requiring more than 100 megawatts of power and some exceeding 300 megawatts.
Staff recommendations include updating Austin’s land-use rules, creating new siting and zoning standards for higher-impact data centers, and establishing requirements addressing water efficiency, noise, lighting, and other environmental impacts.
Water use has been a particular concern as data center development expands. Existing data centers accounted for less than 0.3% of Austin Water’s total water use in 2025, but officials are looking at ways to prepare for significantly larger facilities in the future.
The discussion follows a City Council resolution approved in July directing staff to develop recommendations for greater oversight of large-volume water users.
Council members will hold a dedicated data center work session Aug. 25, followed by potential action Aug. 27 to begin the process of amending Austin’s Land Development Code.