Austin and Hillsboro Move to Restrict Large Data Centers

Municipal leaders in Austin and Hillsboro are taking steps to curb the rapid expansion of large-scale data centers. On August 27, the Austin City Council unanimously approved a resolution to update the land development code, establishing new requirements for noise, lighting, water consumption, and energy use. The city currently lacks a framework for hyperscale centers exceeding 75 megawatts, and any such projects proposed before new rules are finalized by the end of 2026 must receive council approval.

Mayor Kirk Watson amended the resolution to ensure the council is notified of any project requesting more than 20 megawatts of power or 85 million gallons of water annually. While Watson emphasized a thoughtful approach to avoid loopholes, council members Vanessa Fuentes and Mike Siegel advocated for a total ban on hyperscale facilities to protect the environment and quality of life.

Similarly, the Hillsboro Planning Commission held a public hearing on Wednesday to discuss restrictions on data center size and proximity to schools. These proceedings follow a 120-day moratorium implemented by the city shortly after Digital Realty Trust applied to build a facility approximately 200 feet from Liberty High School. Local residents have expressed opposition to the facilities while calling for clear regulations to manage AI-driven infrastructure growth.