Regulating data centers in San Antonio has boiled down to one choice.

Should data centers be approved on a case-by-case basis or can they be built by-right, whenever they meet a set of pre-determined city standards?

On Tuesday, the City of San Antonio’s Zoning Commission recommended a plan for regulating data centers. It gives San Antonio City Council, which will make a final decision next week, a fourth option for regulations after three were presented last week.

All four use by-right, case-by-case or a combination of those approval processes.

There are some clear starting points for any data center land-use policy in San Antonio. Data centers will only be built in industrial, commercial or manufacturing zones. They will also not be allowed over the Edwards Aquifer Recharge Zone. These rules are only for land use — regulations regarding power or water use would fall under CPS Energy and the San Antonio Water System’s authority.

The city’s Development Services Department presented two initial options for data center rules.

The by-right option allows data centers to be approved automatically once they meet a list of city requirements. The case-by-case policy would require each data center project in the city to be plead its own case in front of City Council.

Mayor Gina Ortiz Jones presented a third option last week, giving developers a list of citywide standards that developers could meet before they earn approval from City Council on a case-by-case basis.

On Tuesday, the city’s Zoning Commission put forward its own recommendation. The committee of council member-appointed residents, which makes recommendations on land-use to City Council, outlined a policy that allows by-right data centers in some parts of the city , but not in others.

San Antonio City Council will decide what the new rules will be at an Oct. 29 A session.

The newest proposal

On Tuesday, the Zoning Commission put forward its proposal for regulations.

The commission’s policy proposal would allow by-right development in industrial areas, specifically the general, heavy, mixed and mixed heavy industrial districts, while there would be specific use authorization in business park, light industrial and general commercial zones.

To build data centers by-right, developers would have to leave 350 feet of separation between data centers and residential or neighborhood buildings and have a 100-foot setback from their own property line. The rules also require downward-facing lighting, to prevent light pollution.

The Zoning Commission also considered data centers that were already built; San Antonio currently has at least 19 data centers, according to the Texas Tribune.

Sparrow said many previously built data centers would be non-conforming with new rules. They would be allowed to keep operating, he said, but they would not be able to expand or conduct extensive repairs unless they come into line with new policies.

Commissioner John Bustamante recommended including an exemption for older data centers under the new rules, allowing them to finish expansions or phased construction. It was approved as part of the Zoning Commission’s recommendation.

The Zoning Commission does not enact policies. Its recommendation will go to City Council members, who will consider it when making their decision.

The first two options

Councilman Ric Galvan (D6) got the ball rolling on data center regulations almost a year ago, when he submitted a request in October 2025 to start the policymaking process.

Data centers have multiplied across Texas as larger facilities look to serve artificial intelligence needs. Galvan’s district has been a hotspot for their development within city limits.

Staff from the city’s Development Services Department had four public meetings between May and September, where they discussed potential policies with stakeholders.

“If you wanted to participate, you were invited,” said Logan Sparrow, assistant director at the DSD. “Not going to lie, a lot of those folks were from the [data center development] industry, but we certainly tried our best to include as many people as we could.”

Developers have pushed for a set of clear requirements for construction. They see those rules as more stable, making investment and construction more dependable.

That’s why they want by-right development, one of the first policies proposed by DSD. Developers could build a data center if they own the land and meet city requirements, which would include being 500 feet away from residential, school, hospital, day care and assisted living properties and a landscape buffer onsite. City officials are referring to this as Option 1.

“Anytime we want to attract investment, there has to be consistency and predictability. They want to know the rules of the game,” said Stephanie Reyes, president of the Real Estate Council of San Antonio, who spoke in favor of by-right development on Tuesday.

DSD staff also proposed case-by-case evaluations of data centers. That would require what’s known as a specific use authorization for each proposed data center. That means every data center would go in front of the Zoning Commission and City Council, which would lay out specific requirements for each data center. City officials are referring to this as Option 2.

“It’s so important for you all to recommend to City Council this specific use authorization because it would give the public the opportunity to ask these questions and to give feedback and to share their concerns,” said Deedee Belmares, Clean Energy advocate for advocacy group Public Citizen.

Public Citizen monitors data centers and informs residents about their development in San Antonio and across the state. On Wednesday, Belmares advocated for case-by-case evaluations of data centers, speaking out against DSD’s by-right proposal and the Zoning Commission’s latest recommendation.

The Mayor’s proposal

During an Oct. 14 City Council meeting, Jones shared what she called a combination of by-right and case-by-case processes. She said it gives data centers a clear list of guidelines to meet before each goes to city council for approval.

“We understand the importance of this computing power for our national security and our economic security,” she said. “At the same time, we can balance the request for transparency that the community is clamoring for.”

Jones’ proposal starts with a list of city standards and questions that data centers could choose to meet.

Those include limiting noise, 1000 feet of separation between data centers and residential properties, enclosing backup generators to prevent air pollution and replacing green space that’s destroyed in building the data center.

Developers would have to notify city officials 45 days before they file for permits. Once they file for permits, they would have to show plans for two public engagement meetings with seven days of advance notice for residents. 

There are other questions that the city would ask as part of Jones’ proposal: will data centers meet air quality monitoring and reporting requirements? Will they share energy and water usage information? Are there any other public benefits?

Meeting these requirements wouldn’t give developers the right to build data centers. They would still have to receive specific use authorization from City Council, when residents would have another 10 days to review proposals, but Jones said it would create the consistent requirements developers crave. Jones is calling this Option 3.

“Here’s the test. We’re giving you the answers to the test. This is what we care about,” Jones said. “We’re going to have a discussion. It allows them to make the case, but also allows us to formally approve or disapprove those based on how well they apply.”

What will council do?

On Oct. 14, when council members first discussed by-right, case-by-case or Jones’ proposed rules a majority of council members supported some form of case-by-case approval that would require each data center to seek specific use authorization.

The mayor and at least five other council members — Galvan, Jalen McKee Rodriguez (D2), Edward Mungia (D4), Teri Castillo (D5) and Ivalis Meza Gonzalez (D8) — signaled support for case-by-case approvals of data centers through Jones’ or DSD’s plan.

Council members Misty Spears (D9) and Marc Whyte (D10), the council’s two conservative voices, pushed back against regulation. Whyte argued for by-right development, while Spears argued for no regulations at all.

There are still details to hammer out. Council members could consider older non-conforming data centers. They’ll also now considering a new proposal from the Zoning Commission.

“We really need to understand how attractive we are for these data center companies,” Jones said. “We own all of our utilities. We we have land, right? We should not also be attractive as, frankly, being a cheap date.”