Austin's first data center rules could get a council vote Dec. 3. A new city memo lays out the plan

Austin's first rules for data centers could reach the City Council on Dec. 3, according to an Oct. 28 staff memo to the mayor and council. The memo is the 60-day update the council asked for in August. For residents worried about big server farms using power and water near homes, it sets the order of events: a quick first step this year and fuller zoning rules in spring 2027.

KXAN reported on the memo Oct. 30. The first step would put large data centers under Title 4 of the City Code, the business regulations chapter that already covers businesses such as adult-oriented establishments.

This follows our Oct. 18 story on the council's August vote to start writing rules.

What the memo proposes

The memo, from Austin Planning Director Andrea Bates, Austin Energy General Manager Stuart Riley and Austin Water Director Shay Ralls Roalson, recommends two phases:

• Phase 1, by year's end. Change Title 4 to set "non-land use requirements" for large-scale data centers, and possibly add a definition of "data center" to Chapter 25-1. The proposal would be posted on the council agenda Nov. 20 for consideration Dec. 3.
• Phase 2, in 2027. Define data centers as a land use in the zoning code and decide which zones, if any, would allow them. Staff plan to release a proposal for public review in February or March, hold a joint Planning Commission and council meeting and open houses in March, go to the Planning Commission in April and reach the council in April or May.

Staff are also drafting an "Operations Plan" that certain data centers would have to file, with input from Austin Energy and Austin Water.

What the utilities are seeing

As of Sept. 30, Austin Energy had received 13 inquiries from potential data centers seeking 20 megawatts or more, the memo says. If all were built, which staff call unlikely, they would add 664 megawatts across the utility's service area over 12 years. None of the inquiries exceeds 75 megawatts. Four are in a planning study, five are waiting for the customer to accept a study, four are in a facilities study, and none is ready to sign an agreement. The memo says one megawatt typically serves about 250 homes.

Austin Water has received no request above 85 million gallons a year. It does have one completed wastewater request for a proposed data center near 16301 Cameron Road. That site is outside the city and its extraterritorial jurisdiction but inside Austin Water's wastewater service area.

The memo also explains a limit on the city. State law requires Austin Energy and Austin Water to serve customers in their certificated areas, and the Public Utility Commission can take away service territory from a utility that does not.

Reaction

Council Member Mike Siegel, who pushed for the rules, told KXAN he expects a ban on large data centers in December. The Data Center Coalition, an industry group, said in a statement to KXAN that it was "not accurate" to treat data centers as incompatible with neighborhoods, and urged the city to keep working with stakeholders before acting.

What our records add

The August vote. On Aug. 27 the council approved the resolution starting this work, 11-0, as amended at its Aug. 27 meeting. It told staff to bring the simplest changes by the end of 2026 and to report to the council before approving any request for more than 20 megawatts of power or 85 million gallons of water a year while rules are written.

Water use rules on a separate track. On July 23 the council approved, on consent, Siegel's resolution on large-volume water customers, 10-0, with Council Member Vanessa Fuentes absent. The memo says Austin Water will present a "High Impact Water User" policy framework, with conservation plans, water budgets and annual reporting for big users, to the council's Climate, Water, Environment, and Parks Committee on Dec. 9.

The commission angle. The city's Technology Commission meets Nov. 4 and has a presentation on its research partnership on data centers and public surveillance, according to its agenda.

What's next

• Nov. 20: The Dec. 3 agenda, with the staff proposal, is due to be posted.
• Dec. 3: Possible council vote on the Title 4 changes.
• Dec. 9: Austin Water's large water user framework goes to the council committee.
• Spring 2027: Zoning rules for data centers.

Austin Energy and Austin Water will keep sending the council monthly notices of large service requests until new rules take effect, the memo says. Questions go to Austin Planning's interim assistant director, Joi Harden, according to the memo.