San Marcos City Council Revisits $1.5B Data Center Proposal by Highlander SM One LLC
A $1.5 billion data center project in San Marcos, Texas, is reentering the city's approval process after a divided City Council vote in August 2025 stalled its progress. The proposal, led by Highlander SM One LLC and landowners Donald and Germaine Tuff, seeks to amend the city's Preferred Scenario Map to reclassify 199.5 acres for commercial use, facilitating the construction of a multi-building data center campus.
The entitlement process restarted in October 2025, with Planning and Zoning Commission review expected in January and City Council consideration in February. The development could feature up to five buildings with a total power capacity of 76 megawatts each.
Local residents have expressed concerns over noise and proximity to a power plant. The city approved annexation of 64 acres in August 2025, but further approvals are pending.
