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Austin leaders eye water conservation measures for major projects as data center growth raises resource concerns

Austin leaders are seeking to mandate long-range water use and conservation plans from facilities that use large amounts of water, like data centers. The proposal comes as City Council is expected to consider several new regulations this summer that could restrict or ban hyperscale data center development in Austin.

“The overall message is that Austin is looking very carefully at water usage, and if you want to use a lot of water you’ll not only have to pay your fair share for water and infrastructure, but you also have to conserve as much as possible," said council member Mike Siegel.

The details: Siegel's resolution approved July 23 would impose new water planning processes for large-volume water users. It also kicks off new public reporting on usage by Austin Water's largest customers. More city policies related to land use, noise regulations and Austin Energy will be considered by council in the near future.

 
On The Business Beat
East Austin boutique Take Heart to celebrate 15 years

​Take Heart will celebrate its 15th anniversary Aug. 1, according to a social post from the company. 

The details: Saturday's celebrations will include 15% off in-store from 10 a.m.-6 p.m. and free vegan ice cream from Gati from noon-2 p.m, the anniversary post said. 

The backstory: The East Austin boutique opened in 2011, according to its website, and relocated down the street in 2019, as previously reported by Community Impact.

It carries a curated selection of home decor, accessories, gifts and art, including handcrafted ceramics, wooden goods, candles, cards, jewelry and textiles from independent makers, per its website.

 
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East Austin dirty soda trailer Drinki Soda Co. to close this month

Drinki Soda Co., the dirty soda shop located inside the car wash across from Nickel City and behind Paperboy, will be closing July 26, according to an Instagram post from the business.

The details: Launched by Lattice Hudson and Tiana Rodriguez in late October, the trailer was the city's first shop dedicated to dirty sodas—nonalcoholic drinks made by mixing soda with flavored syrups, creams and other add-ins, according to the business's Instagram page.

The shop will be open July 24-25 from noon-7 p.m. with street parking, and July 26 from noon-6 p.m., using the car wash parking lot, before closing its trailer. 

  • 1201 E. 11th St., Austin

 
Permit Preview Wednesday
Burlington, Fairfield Inn: Check out 5 major Austin-area permits filed this week

A Burlington in Kyle, a Fairfield Inn in Bastrop and an AutoZone in Austin are among the five most expensive projects filed with the Texas Department of Licensing and Regulation in the Austin metro this week.

1. Burlington ($16.5 million): A new Burlington store is coming to the Kyle Park mixed-use development.

2. Fairfield Inn Staybridge Suites ($10 million): A new 121-key hotel is coming to Bastrop, with construction set to conclude in summer 2028.

3. Slaughter Lane Signal Improvements ($1.2 million): This project includes the installation of accessible pedestrian push-buttons, pedestrian signal poles, and renovation of curb ramps and adjacent sidewalks at 11 traffic signals on the Slaughter Lane corridor.

4. AutoZone ($1.1 million): A new AutoZone location is planned for Austin. The 6,446 square-foot auto parts store is set to begin construction in April.

5. Jersey Mike's ($250,000): A new Jersey Mike's is planned for Cedar Park. The 1,457-square-foot sandwich shop is expected to be completed in October.

 
CI Texas
Texas spends billions on tax breaks for data centers. There’s a bipartisan legislative push to repeal them.

Texas lawmakers are considering cutting a costly, decade-old tax break for the state’s booming data center industry.

The overview: Texas spends more than $1 billion annually on the sales tax exemption, and the comptroller’s office estimated in 2025 that due to the program, the state will lose about $3.2 billion in sales tax revenue over the next two years.

The Lone Star State is home to the nation’s fastest-growing data center market, and the Data Center Coalition, which advocates for the industry, has argued that the tax break program is key to maintaining that title. Senators and members of the public who spoke at a July 27 hearing disagreed.

Looking ahead: Amid a bipartisan push for more regulation of data centers, senators indicated that they intend to add more strings to the tax exemption program or eliminate it entirely.

"The question is whether or not we need to have a special session where all of us are focusing in on this," Sen. Royce West, D-Dallas, said.

“We do,” Sen. Lois Kolkhorst, R-Brenham, replied.

 

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