Austin Considers Business Code Rules for Data Centers Ahead of Zoning Changes

Austin is considering a two-stage approach to data center regulation, beginning with a definition of data centers in Title 4 of the city’s Business Code. The proposal outlined in an October 28 staff memo could come before council on December 3, with a separate round of zoning work to follow. Power Grab TX’s account of the city’s proposal

The Business Code changes would establish how the city defines the facilities for regulatory purposes. The later zoning work would address where those facilities can locate. Staff would review approaches used in other cities and conduct targeted public engagement before presenting a broader land-use framework, expected in February or March 2027. Final zoning rules are targeted for May 2027.

The proposal also calls for Austin Energy and Austin Water to notify council each month about service requests from large-load customers. That reporting would give council a regular view of potential electricity and water demand while proposed facilities are still taking shape.

Austin Energy had heard from 13 potential data center projects as of late September, according to the reporting. Staff said none approached hyperscale size and that some may never be built. The December date remains a possible vote on the first stage, with land-use rules on a separate schedule.