San Marcos City Council Revisits $1.5B Data Center Proposal by Highlander SM One LLC
DATA AND AI INFRASTRUCTURE
The San Marcos City Council is revisiting a $1.5 billion data center proposal by Highlander SM One LLC after a previous vote stalled its progress in August 2025. The project aims to reclassify 199.5 acres for commercial use to facilitate a multi-building campus with a total power capacity of 76 megawatts per building, but local residents have raised concerns about noise and its proximity to a power plant. The entitlement process is set to resume with Planning and Zoning Commission reviews in January and City Council consideration in February.

Jan 6, 2026, 3:33 PM