SAN ANTONIO — Texas’ second largest city will soon decide whether to regulate the booming data center industry in the area.

Companies are opening up more and more data centers in and around San Antonio, but nowhere more than on the west side of the city.

San Antonio City Councilman Ric Galvan says he started getting calls from constituents asking about possible environmental risks and impact to utility bills.

“We’re seeing data center growth in Virginia, Dallas and in other places, and how it’s impacting some of the resources there,” Galvan said. “And they wanted to understand how it’s affecting us here.”

With more projects still planned in his district, Galvan says the city should have a better idea of where they’re built and how they operate. If passed, his proposal could require a special use permit for the data centers, allowing the city to oversee how much water and electricity they use. Galvan says it’s a way to protect natural resources and keep utility bills down, especially as higher costs are already in conversation.

“We’re seeing rate increases at SAWS [San Antonio Water System] and CPS [Energy] that are proposed,” Galvan said.

A study by the University of Houston found that just one large data center alone can use the same amount of power as 80,000 homes annually. Still, Galvan understands the economic benefit they offer and hopes partnerships with the companies can reassure residents with concerns.

“By having a conversation about community benefits, having conversations about how the environment is protected in some way, and what things the industry is already doing in that realm can help ease those tensions,” Galvan said.

The proposal is in the hands of the San Antonio Planning and Community Development Committee. It will then go before the full City Council early next year.