San Antonio Weighs New Regulations for Surging Data Center Industry

City Council debates zoning, resource use, and community impact as data centers rapidly expand in the area.

Published on Mar. 7, 2026

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San Antonio city leaders are considering new regulations for the growing number of data centers in the area, focusing on zoning rules and ensuring sufficient resources, particularly recycled water, are available to support the facilities. The discussion was sparked by Councilman Ric Galvan's request to review data center development and resource use, with Council members exploring ideas like community benefit agreements, encouraging tech job creation, and having data centers share backup power with neighborhoods during outages.

Why it matters

The increasing demand from data centers highlights a critical balancing act for San Antonio: maximizing economic opportunity while ensuring responsible resource management and community well-being. As the number of data centers grows, the city must find ways to regulate the industry to mitigate potential strains on water, power, and other infrastructure.

The details

Councilman Galvan proposed updating San Antonio's Unified Development Code (UDC) to categorize data centers as general industrial, noting that current zoning laws lack specific rules for these facilities. While the UDC is typically updated every five years, with the next update scheduled for 2027, Galvan and Mayor Gina Ortiz Jones advocated for an earlier review. Councilwoman Phyllis Viagran suggested waiting until 2027, while Councilman Marc Whyte highlighted the potential economic benefits of data centers, including job creation and increased property tax revenue.

  • In 2025, 75% of water used by data centers in San Antonio was recycled water, an increase from 48% in 2023.
  • The next scheduled update to San Antonio's Unified Development Code is in 2027.

The players

Ric Galvan

A San Antonio City Council member who requested a review of data center development and resource use in the city.

Gina Ortiz Jones

The mayor of San Antonio who advocated for an earlier review of the city's Unified Development Code to address data center regulations.

Phyllis Viagran

A San Antonio City Council member who suggested waiting until 2027 to update the Unified Development Code.

Marc Whyte

A San Antonio City Council member who highlighted the potential economic benefits of data centers, including job creation and increased property tax revenue.

Amin Tohmaz

The city of San Antonio's development services director, who suggested that updating the Unified Development Code could allow the city to require data centers to be at least 1,000 feet from residential areas, parks, and other incompatible land uses.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The city of San Antonio is expected to consider updates to its Unified Development Code in the coming years to address the growing data center industry and its impact on the community.

The takeaway

As data centers continue to expand in San Antonio, the city must find a way to balance the economic benefits of the industry with responsible resource management and community well-being. Updating zoning regulations and exploring innovative solutions like shared backup power could help the city navigate this challenge.