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NewsWFLA News Channel 8November 1, 2026Hillsborough County

Austin staff propose regulating data centers under city code and potential zoning restrictions

Photo: WFLA News Channel 8

Austin city staff released a memo outlining a two-phase plan to regulate data centers under the city's land development code, which could include a potential ban on large data centers as early as December. The first phase involves defining data centers in city code Title 4 by December 3, while a second phase could establish targeted zoning rules by May 2027.

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Why It Matters

The proposed regulations could prevent data centers from operating near residential areas or ban large facilities entirely in Austin, impacting digital infrastructure development in a major regional market.

Key Facts

  • Austin city staff released a memo on Oct. 28 outlining a two-phase regulatory framework for data centers.
  • Phase one focuses on updating Title 4 of the city code to officially define data centers, with a potential council vote on Dec. 3.
  • Phase two may establish land use through zoning, utilizing peer city research and targeted engagement, with a final framework potentially arriving by May 2027.
  • Council member Mike Siegel expects a ban on large data centers to take place in December.
  • Austin Energy reported that 13 potential data center projects reached out to the utility as of late September, none of which are hyperscale facilities or exceed 75 megawatts.
  • The Data Center Coalition opposes banning large data centers, arguing they place minimal demands on public services and contribute to economic growth.

Who's Mentioned

PersonKirk Watson“Mayor of Austin who received the city memo on data centers.”OrganizationData Center Coalition“Membership association representing the data center community.”PersonMike Siegel“Austin City Council member representing District 7.”OrganizationAustin Energy“City utility that received potential data center project inquiries.”PersonJess Heck“Leader of DCC's Texas Government Affairs.”locationAustin“City where data center regulations are being proposed.”