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.

The Watershed is slated to combine a beverage program, a food truck and a communal gathering space for all on one property in Clarksville.

The new business is led by Patrick Gartner, owner of Verified Hospitality, as well as Austin Berry and Austin Pfiester with Lost Heard Enterprises. Locals can expect to see the space open in late August, Gartner said. The main goal for Gartner “is to do fun stuff with talented people,” he said. 

Learn more: The Watershed will soon be home to Grisette’s, serving up coffee, natural wines and beer in-house. The all day coffee shop and beer and wine bar will serve coffee from local roasters, Gartner said.

On the menu: Visitors can dine on food from Claudia Willis Villegas at her food truck: Muy Yum. Willis Villegas is cooking up grazing boards, rice bowls and light bites made with locally sourced ingredients from Texas and Mexico. 

• 1004 W. 11th St., Austin

Tiny Grocer owner Steph Steele announced that Tiny Grocer on South Congress will be closing, and moving operations to a new location off East Martin Luther King Jr. Boulevard in fall 2026, replacing the former Longhorn Meat Market, according to previous Community Impact reporting. 

Learn more: Steele announced the upcoming closure in an Instagram post in July. The store’s official closing date is Aug. 23, Tiny Grocer employee Daniel Mendoza said. 

To prepare for the store’s closing, Tiny Grocer is hosting a 10% off sale on retail items at its South Congress and Hyde Park locations. The sale began on July 15 and will run until the end of the month, according to Steele. 

In their own words: “I want to tell you, Bouldin Creek and Travis Heights, you have my heart,” Steele said. “I’m working as hard as I can to come back as fast as I can to continue to serve you.”

• 1718 S. Congress Ave., Austin

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.

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.