government
San Marcos becomes the first Texas city to ban data centers, testing its local control
By Texas Tribune at KVIA ABC-7
· June 30, 2026
· 11 min read
by Katlyn Ma, The Texas TribuneJune 30, 2026
San Marcos has become the first Texas city to ban data centers within city limits, banking on its local authority to stop the data center boom and setting a precedent for other municipalities to follow.
San Marcos City Council voted 4-3 on June ...
Key takeaway Early June, Hill County rescinded its data center moratorium after a developer sued the county for $100 million.
Why this matters in The El Paso
The move by San Marcos to ban data centers within its city limits has significant implications for El Paso , as it tests the boundaries of local control in Texas. El Paso, like San Marcos, has home rule powers, which could potentially be used to restrict or regulate data centers in the city. As the city of El Paso continues to grow and develop, it may face similar concerns about water and energy resources, making San Marcos' approach worth watching. The outcome of the expected challenge to San Marcos' ban by state Sen. Paul Bettencourt will be particularly important, as it could set a precedent for other cities, including El Paso, that are considering using their local authority to regulate data centers. If San Marcos' ban is upheld, it could embolden other cities to take similar action, potentially altering the trajectory of data center development in Texas.
About this story
Original reporting by KVIA ABC-7 . The El Paso surfaces reporting from trusted publishers and adds local editorial context so readers can quickly understand what a story means for their community. We attribute every source, link to the original report, and follow a documented editorial standards policy. To understand how stories are selected and reviewed, read our about page .
For the complete original report, visit KVIA ABC-7 . Have a tip or correction? Contact our newsroom .
Category: government ·
Published: June 30, 2026 ·
Source: KVIA ABC-7 ·
Reading time: 11 min
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Frequently asked about this story
What is this story about? by Katlyn Ma, The Texas TribuneJune 30, 2026
San Marcos has become the first Texas city to ban data centers within city limits, banking on its local authority to stop the data center boom and setting a precedent for other municipalities to follow.
San Marcos City Council voted 4-3 on June ...
When was this published? This article was first published on June 30, 2026 by KVIA ABC-7 and curated for The El Paso readers.
Who reported this story? This story was reported by Texas Tribune at KVIA ABC-7. To learn more about how The El Paso selects and reviews stories, see our editorial standards .
Where can I find related coverage? See more government coverage from The El Paso, or browse our daily briefing and topic hubs .
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