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Austin leaders poised to ban large data centers, tighten regulations for smaller facilities

Local leaders are aiming to limit the spread of data centers with new standards for the development of smaller facilities in Austin, and a complete ban on larger and more resource-intensive projects.

The details: City officials are gearing up for a review of data center development policy that could conclude by next spring. The process is the result of a recent council request intended to balance Austin's economic strategy with community values and well-being, given limited city oversight of data centers today.

New rules could restrict data centers to certain types of property, require a public permitting process for any individual projects to advance, or block them completely. Various site development standards would also be included, and city staff recommended setting performance standards to address data centers' noise, heat, light and water usage, and related civic enforcement.

 
Latest Education News
Round Rock ISD anticipates $23.6M deficit for FY 2025-26

Round Rock ISD is anticipating a larger-than-expected gap between revenues and expenses for the 2025-26 financial year as administrators work to close the books.

In a nutshell: Higher insurance costs, legislative impacts and property tax protests are behind a jump in the expected shortfall, RRISD’s new Chief Financial Officer Ludivina Cansino said in an Aug. 20 update.

The district is expecting a $23.6 million shortfall that will reduce its fund balance to $43.2 million, Cansino shared in her presentation.

She said the district could anticipate a hit to its financial ratings, as the Texas Education Agency factors unassigned fund balance into its annual Financial Integrity Rating System of Texas assessment of school districts’ financial practices. Generally, the system rewards districts that have a fund balance equal to around 60 to 90 days of expenditures.

At $43.2 million, this fund balance is equal to about 30 days of the approved $486.1 million in expenditures for the 2026-27 budget.

 

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CI Texas
Texas Department of Insurance must work to reduce home insurance costs, Gov. Abbott says

The Texas Department of Insurance must take action to promote competition and “prohibit excessive or unfairly discriminatory rate setting" in the state's homeowners insurance market, Gov. Greg Abbott said Aug. 24.

The background: Texans are paying the fourth-highest home insurance premiums in the nation, Community Impact previously reported. State data shows that the average Texas home insurance premium nearly doubled from $1,791 in 2016 to $3,506 in 2025.

The details: Abbott asked the TDI to prohibit insurers from using the age of a home and homeowners' personal data when setting rates; create a task force targeting insurance fraud; study the impact of inflated insurance claims; and require insurers to consider a homeowner's participation in a roof fortification program when writing policies.

Another perspective: "Under Greg Abbott, Texas has been one of the most expensive states in the country to own and maintain a home," Gina Hinojosa, the Democratic candidate for Texas governor, said in a statement. "If Abbott really wanted to lower costs, he would have done it in the last 12 years."

 
What's Next Wednesday
Data center, new ACC building: Check out 5 major Austin-area permits filed this week

A data center in Cedar Creek, a new building for the Austin Community College Hays Campus and renovations at Liberal Arts and Science Academy are among the five most expensive projects filed with the Texas Department of Licensing and Regulation in the Austin metro this week.

1. EDCAUS ($700 million): A data center campus is being developed in Bastrop County.

2. Austin Community College - Hays Campus ($101 million): A three-story Health Sciences instructional building with classrooms, administrative offices, a testing center, vocational training, instructional spaces, and laboratories will be constructed at the Austin Community College Hays Campus.

3. LASA High School ($21.3 million): Renovations will take place at the Liberal Arts and Science Academy in Austin.

4. Bartlett's South ($4 million): A new location of Bartlett’s steakhouse is coming to Austin.

5. Smart Stop ($1.5 million): A new one-story convenience store and two future tenant spaces are coming to Pflugerville.

 

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