San Antonio Requires Council Approval for Every New Data Center

San Antonio City Council has approved a policy requiring every data center developer to obtain a special permit from the council before construction can begin. Council members rejected by-right development, which would have let projects proceed once they met listed standards.

The 9-2 vote came Thursday. Councilman Ric Galvan (D6), who first asked city staff to draft regulations in October 2025, joined most of the council in backing the case-by-case approach. Council members Misty Spears (D9) and Marc Whyte (D10) voted no.

The city's Development Services Department spent the summer meeting with residents and developers before presenting options this fall. Mayor Gina Ortiz Jones proposed a stricter framework that included 1,000-foot setbacks, noise limits and water and energy disclosures, but it failed 6-5. A Zoning Commission alternative also fell on a narrow vote.

The rules allow data centers only in commercial or industrial zones. Council will review each proposal on factors such as distance from homes, noise, water and power use, and lighting. Separate setback rules apply near the city's UNESCO World Heritage Sites on the South Side.

For developers and lenders, the practical takeaway is that site selection in San Antonio now depends on a discretionary council vote, which adds schedule risk and public comment exposure to any data center project.