Austin could treat data centers like 'adult businesses' under new regulations

Austin may apply data-center rules similar to how the city regulates “adult-oriented” businesses, according to policy steps moving through city hall. In a memo released Oct. 28, staff laid out a two-phase framework after an August council resolution directing updates to Austin’s land development code for data-center restrictions. Phase one would define data centers in Title 4 of the city code and set initial requirements for facilities housing computer servers. Phase two could use zoning and research from peer cities. Councilmember Mike Siegel said residents want reassurance that facilities won’t be cited near homes and businesses. A final framework could take until May 2027, while Siegel expects a ban on large data centers by December. The Data Center Coalition disputes claims that data centers are inherently incompatible with neighborhoods.