Texas town's data center ban challenged by state senator

In June, San Marcos became the first city in Texas to prohibit data centers.

1 minute read

July 6, 2026, 6:00 AM PDT

By Diana Ionescu @aworkoffiction


Aerial of downtown San Marcos, Texas.

San Marcos, Texas. | Jacob Boomsma / Shutterstock

In June, San Marcos, Texas became the first city in the state to ban data centers. Now, a state senator is challenging that decision, testing the limits of local power, reports Emily Hallas in Washington Examiner.

Republican state Sen. Paul Bettencourt told the Texas Tribune that state law does not allow San Marcos to "ban anything everywhere in the city," citing House Bill 2559 and the 2023 "Death Star Law" that restricts cities from enacting local laws that contradict state laws. 

"The battle over San Marcos comes as Texas Republicans divide over the path of data center development in the state. Most acknowledge expansion is necessary to support the artificial intelligence revolution but have split on how much control local authorities should wield over the process," Hallas explains. 

Bettencourt believes the state's economic growth depends on "statewide, top-down guidelines," and is part of a cohort of state officials including Gov. Greg Abbott, who has called Texas an "epicenter" of AI development.

Tuesday, June 30, 2026 in Washington Examiner

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