San Antonio Zoning Commission Recommends Mixed By-Right Rules for Data Centers

San Antonio is weighing how to regulate data centers, and the choice has narrowed to whether projects are approved case by case or built by right once they meet preset city standards. The city's Zoning Commission recommended a fourth option on Tuesday, giving City Council a new framework to consider before its final decision at the Oct. 29 session.

Under the commission's proposal, by-right development would be allowed in general, heavy, mixed and mixed heavy industrial districts. Business park, light industrial and general commercial zones would require a specific use authorization. Projects built by right would need 350 feet of separation from residential or neighborhood buildings, a 100-foot setback from the property line and downward-facing lighting.

Existing data centers, of which the city has at least 19, could keep operating but could not expand or undertake major repairs unless they meet new rules. The commission also approved an exemption that lets older facilities finish expansions or phased construction.

The Development Services Department presented earlier options, while Councilman Ric Galvan requested the policy process in October 2025. Developers have pushed for predictable by-right rules, while public advocates favor case-by-case review that allows public comment.

For developers and financiers, the practical implication is that site selection in industrial zones may soon hinge on separation distances, setbacks and lighting standards.