San Antonio City Council Seeks Oversight on Data Center Growth

Council members raise concerns over water and power usage, suggest zoning changes to limit data center locations.

Published on Mar. 5, 2026

Got story updates? Submit your updates here. ›

The San Antonio City Council is looking to take a more active role in overseeing the growth of data centers in the city. Council members expressed concerns about the significant water and power usage of these facilities and suggested exploring zoning changes to limit where they can be built. The council is also seeking better coordination between the city's utilities, CPS Energy and SAWS, to manage the increasing demand from data centers.

Why it matters

Data centers are a rapidly growing industry in Texas, and San Antonio has seen a boom in these high-tech facilities. However, the council is concerned about the strain these centers are placing on the city's water and power resources. By seeking more oversight and potential zoning changes, the council aims to balance the economic benefits of data centers with their environmental impact on the community.

The details

There are currently about two dozen data centers in San Antonio, with 11 more projects totaling 1,746 megawatts expected to come online in the next 5-7 years. Data centers are considered 'large load customers' by CPS Energy, using the equivalent power of about 10,000 homes. SAWS officials said data centers currently account for 0.1% of the utility's drinkable water usage and 1.25% of its recycled water usage, but that could grow to 0.3% of drinkable water and 12% of recycled water with the planned projects. Council members expressed interest in expanding SAWS' recycled water system to accommodate the data center growth and potentially requiring the facilities to use treated wastewater instead of drinkable water.

  • CPS Energy and SAWS recently rolled out a non-disclosure agreement that allows them to share data on data center projects.
  • CPS Energy began charging developers $75,000 to $150,000 for engineering studies this year to ensure projects are serious.
  • Data centers face a 10-year performance period with CPS Energy, with 'clawbacks' if they don't meet power usage and revenue projections.

The players

Jenny Kane

Associated Press reporter.

Ric Galvan

San Antonio City Council member who filed a policy proposal to explore regulating data centers.

Elaina Ball

Chief Strategy Officer at CPS Energy.

Donovan Burton

Senior Vice President of Water Resources and Governmental Relations at SAWS.

Gina Ortiz Jones

Mayor of San Antonio.

Got photos? Submit your photos here. ›

What they’re saying

“We are not anticipating generation that would surpass what Donovan is talking about.”

— Elaina Ball, Chief Strategy Officer, CPS Energy (expressnews.com)

“The jobs and revenue that these data centers can bring to our city just cannot be ignored.”

— Marc Whyte, San Antonio City Council member (expressnews.com)

What’s next

The San Antonio City Council's Planning and Community Development Committee will begin discussions on potential zoning changes to regulate where data centers can be built in the city.

The takeaway

San Antonio is grappling with balancing the economic benefits of the booming data center industry with the strain it places on the city's water and power resources. By seeking more oversight and potential zoning changes, the council aims to find a way to responsibly manage this growth and ensure the sustainability of the city's utilities.