Highlander SM One Data Center
Proposed size
380 MW
Site area
137 ac
Building area
2,200,000 sq ft
Investment
$1.5B
Developer
Highlander SM One LLC
A proposed 380 MW, $1.5 billion data center campus on 200 acres at 904 Francis Harris Lane, San Marcos. The project required a Preferred Scenario Map amendment to allow heavy industrial use on agricultural land within the Edwards Aquifer watershed. San Marcos City Council denied the application 5-2 on February 17, 2026, after more than 8 hours of public testimony and 130+ public comments.
Water Impact
Daily water use (estimated range)
20K – 75K gal/day
Water returned per day
None reported
Per Restrictive covenant submitted to San Marcos City Council (second application, Oct 2025); San Marcos Record public hearing coverage Feb 2026, based on Developer proposed closed-loop cooling with daily use of 20,000–35,000 gal/day typical; one-time system fill ~70,000 gal; covenant caps total daily draw at 75,000 gal/day maximum. Figures are developer-stated; no independent engineering review published.
vs. 5M gal/day (typical 400 MW facility)
The higher estimate is equivalent to the daily water use of approximately 750 households. San Marcos has approximately 25,000 households.
- Water intake
- 20K – 75K gal/day
- Lost to evaporation
- 100%
- Returned to system
- 0% (None reported)
Direct water figures are estimates from permit applications and developer disclosures. Indirect (power generation) figures are calculated estimates. Actual water use depends on technology choices, operating capacity, and weather conditions.
Location
Address: 904 Francis Harris Lane, San Marcos, Hays County, TX
Distance to aquifer edge: 0 miles
Water source: Crystal Clear Special Utility District
Early signs — this is when awareness matters
Your most powerful action right now is building community awareness. Getting neighbors informed and on record early means officials know there will be scrutiny when the application lands.
Timeline
February 24, 2026
Hays County tables moratorium — county attorneys warn of legal risk
Commissioners Court tables the proposed 30-day water-use permit pause after county attorneys warn it would trigger a lawsuit the county would lose under Texas state law. Judge Becerra vowed to pursue state-level reforms and a "Clear Water Summit" with regional water providers.
Source →(opens in new tab)February 17, 2026
City Council denies PSA 5-2 — final denial after 9-hour meeting
After a nearly 9-hour meeting (vote at 2:14 a.m.), Council voted 5-2 to deny the Preferred Scenario Map amendment. Voting to deny: Garza, Rodriguez, Paselk, and two others. Voting for project: Mendoza and Gonzalez. A motion to postpone to March 31 failed 3-4 before the final vote. Developer must wait 6 months before resubmitting — earliest August 17, 2026.
Source →(opens in new tab)February 17, 2026
City Council denies application 5-2 after 8+ hours of public testimony
After an 8+ hour public meeting with 130+ public comments, San Marcos City Council voted 5-2 to deny the Preferred Scenario Map amendment. The developer must wait 6 months before resubmitting.
Source →(opens in new tab)February 16, 2026
Hays County Judge proposes 30-day moratorium on high-water-use permits
Judge Ruben Becerra announces intent to propose a county-level moratorium on industrial development permits using more than 25,000 gallons/day — explicitly aimed at data centers. The Highlander project's 75,000 gal/day cap would exceed this threshold. He also called for Stage 4 drought restrictions across all water providers.
Source →(opens in new tab)February 3, 2026
City Council first public hearing — second attempt; 180+ citizens register to speak
Council held public hearing with no action taken. Over 180 citizens registered to speak; hundreds attended. A motion to set a 25,000 gal/day water cap (instead of the covenant's 75,000) was discussed but not voted on.
Source →(opens in new tab)January 16, 2026
P&Z Commission recommends approval 6-2 — second attempt
After nearly 8 hours of public discourse, P&Z voted 6-2 to advance both the Preferred Scenario Map amendment and rezoning to City Council. Voting for: Case, Burleson, Costilla, Dunn, Spell, Van Oudekerke. Against: Meeks, Agnew.
Source →(opens in new tab)October 1, 2025
Second application filed — enhanced restrictive covenants
Maberry submits new application (PSA-25-02 and ZC-25-13) resetting the entitlement process. Revised covenants add: 75,000 gal/day water cap, 75 dB noise limit, reduced impervious cover, LEED certification requirement, drainage improvements.
Source →(opens in new tab)August 19, 2025
City Council vote fails supermajority — first Council denial
Council voted 4-2 in favor of the Preferred Scenario Map amendment, failing to achieve the 6-vote supermajority required after P&Z's 8-1 denial recommendation. CyrusOne had already announced it would no longer participate due to project delays; Maberry stated their agreement had expired.
Source →(opens in new tab)August 1, 2025
City Council denies map amendment — lacked supermajority to override P&Z
San Marcos City Council voted on the Preferred Scenario Map amendment but could not achieve the supermajority needed to override the Planning & Zoning Commission's denial recommendation.
Source →(opens in new tab)June 18, 2025
Developer John Maberry presents to San Marcos Rotary Club
John Maberry (Managing Partner, Highlander Real Estate Partners) addressed the San Marcos Rotary Club in June 2025. He argued that modern data centers use less water than older facilities and characterized data centers as among the more environmentally responsible types of large-scale development. Community advocates and water-policy organizations disputed both characterizations, citing industry-standard water-consumption benchmarks and the specific constraints of the Edwards Aquifer recharge zone.
Source →(opens in new tab)March 27, 2025
San Marcos Planning & Zoning Commission recommends denial (6-1 vote)
The Planning and Zoning Commission voted 6-1 to recommend denial of the Preferred Scenario Map amendment required for the data center.
Source →(opens in new tab)March 25, 2025
P&Z Commission recommends denial 8-1 — first attempt
Planning & Zoning Commission voted 8-1 against recommending both the Preferred Scenario Map amendment and Light Industrial rezoning. Because P&Z recommended denial, City Council would need a 6-of-7 supermajority to approve. Community concerns: water, grid reliability, noise, environmental impact.
Source →(opens in new tab)February 18, 2025
City Council first presentation on 200-acre data center
San Marcos City Council heard first formal presentation on Highlander SM One's proposal for a 380 MW data center on 200 acres at 904 Francis Harris Lane. Preferred Scenario Map amendment deferred; annexation of 53.57 acres discussed.
Source →(opens in new tab)
Documents
Sources
- 1. Council blocks Highlander SM One data center zoning — San Marcos Record, 2026-02-17. Link →(opens in new tab)
- 2. San Marcos council denies map change, stops data center development — Community Impact, 2026-02-18. Link →(opens in new tab)
- 3. San Marcos leaders reject $1.5B data center — KVUE, 2026-02-17. Link →(opens in new tab)
- 4. City Council votes to deny Francis Harris Lane data center project — University Star, 2026-02-18. Link →(opens in new tab)
- 5. Proposed data center denied by San Marcos Planning and Zoning Commission — Community Impact, 2025-03-27. Link →(opens in new tab)
- 6. Billion-dollar San Marcos data center revives bid after zoning stalemate — The Real Deal Texas, 2025-12-30. Link →(opens in new tab)
- 7. DATA CENTER DEJA VU: Maberry data center returns to planning and zoning for second attempt at rezoning — San Marcos Record, 2025-12-15. Link →(opens in new tab)
- 8. $1.5B data center moves forward to council — San Marcos Record, 2026-01-17. Link →(opens in new tab)
- 9. San Marcos council to once again consider data center — Community Impact, 2026-01-15. Link →(opens in new tab)
- 10. Maberry Data Center draws water, energy concerns at public hearing — San Marcos Record, 2026-02-08. Link →(opens in new tab)
- 11. San Marcos residents speak out on proposed data center — Community Impact, 2026-02-05. Link →(opens in new tab)
- 12. Council denies Maberry data center — San Marcos Record, 2026-02-18. Link →(opens in new tab)
- 13. San Marcos City Council blocks proposed data center — KUT Radio, 2026-02-18. Link →(opens in new tab)
- 14. San Marcos City Council votes 5-2 to deny AI data center proposal — CBS Austin, 2026-02-18. Link →(opens in new tab)
- 15. San Marcos leaders reject plans to build controversial data center — FOX 7 Austin, 2026-02-18. Link →(opens in new tab)
- 16. San Marcos Data Center Loses Key Vote as Hundreds Pack City Hall — GovTech Insider, 2026-02-18. Link →(opens in new tab)
- 17. County Judge announces moratorium for permits on high water use developments — San Marcos Record, 2026-02-16. Link →(opens in new tab)
- 18. Hays County Backs off Data Center Pause — The Real Deal Texas, 2026-02-26. Link →(opens in new tab)
- 19. Data center proposed for 200-acre site in San Marcos, Texas — Data Center Dynamics, 2025-02-01. Link →(opens in new tab)
- 20. Hays CAD Parcel R70024 — Highlander SM One LLC (136.96 ac) — Hays County Appraisal District, 2026-04-08. Link →(opens in new tab)
Community Notes
The Highlander SM One proposal sparked the most sustained community opposition of any data center case in Hays County history. Hundreds packed City Hall on February 17–18, 2026, with over 125 citizens registered against the project. The Central Texas Data Center Tracker organized a protest at the site the day before the vote. Developer John Maberry (Managing Partner, Highlander Real Estate Partners) originally proposed 470 homes on this 200-acre site before pivoting to data center use after connecting with CyrusOne as the planned operator. CyrusOne later withdrew from the process entirely in August 2025 after prolonged delays caused their agreement to expire. Maberry stated multiple other unnamed operators remained interested pending zoning approval. The second application (Oct 2025) added enhanced restrictive covenants: a 75,000 gal/day water cap, a 75 dB noise limit, LEED certification requirement, reduced impervious cover, and drainage improvements. Critics argued the water cap — three times the 25,000 gal/day threshold proposed in a Hays County moratorium — was still too high given Stage 3 drought conditions. Central concerns at hearings: (1) Water scarcity — Crystal Clear SUD serves this area; Shannon Hamilton of the Central Texas Water Coalition warned a data center "could run a municipality out of water." (2) Grid reliability — Council Member Rodriguez raised ERCOT failure risk. (3) Tax revenue vs. water risk tradeoff — Council Member Paselk, who voted to deny, acknowledged the project "could have solved a lot of economic stuff." Developer tax projections: $9M/yr to city, $15.2M to school district, $5.3M to county (all UNVERIFIED). The 6-month waiting period from the Feb. 17 denial makes the earliest resubmission August 17, 2026. As of April 2026, no new application has been filed.