San Marcos City Council Revisits $1.5B Data Center Proposal by Highlander SM One LLC
The San Marcos City Council is revisiting a $1.5 billion data center proposal by Highlander SM One LLC after a previous vote stalled its progress in August 2025. The project aims to reclassify 199.5 acres for commercial use to facilitate a multi-building campus with a total power capacity of 76 megawatts per building, but local residents have raised concerns about noise and its proximity to a power plant. The entitlement process is set to resume with Planning and Zoning Commission reviews in January and City Council consideration in February.
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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.
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