Omicron Drive runs for roughly two miles at the western edge of Bexar County, before it enters neighboring Medina County and ends at County Road 381. It\u2019s not a major thoroughfare, like Potranco Road, several hundred feet to the north. It doesn\u2019t link major highways, like Texas Research Parkway to the west.<\/p>\n
But it is one of the focal points of data center construction in San Antonio.<\/p>\n
Companies like CyrusOne and Vantage Data Centers have registered construction worth more than $1 billion along the two-mile-long road since 2020, according to cost estimates in the Texas Department of Licensing and Regulation\u2019s project database.<\/p>\n
Data center development has increased as companies and consumers demand physical space for data, artificial intelligence and computing operations. <\/p>\n
More than 30 of data centers have already been built in Bexar County<\/a>, according to new research from The Texas Tribune, with at least 23 more on the way.<\/p>\n As the data centers quickly proliferate in the area and across the country, community members are asking what it means for the environment, infrastructure and economy<\/a> and how these hulking, monolithic loci of the internet fit into San Antonio\u2019s future.<\/p>\n Concern is becoming organized<\/p>\n Texas is business friendly with available land, water and power. That draws data centers, says Deedee Belmares, a San Antonio-based clean energy advocate with Public Citizen, a national nonprofit that advocates on issues from democracy to the environment. Her work focuses clean energy and utilities, but in recent years that\u2019s expanded to include data centers.<\/p>\n \u201cThey\u2019re able to cluster in the same area because they\u2019re able to utilize some of the same resources, like substations,\u201d Belmares said.<\/p>\n Data centers aren\u2019t all the same, she added. There are smaller facilities that serve institutions like hospitals, businesses and local governments with secure data storage. Recently, larger and larger data centers called hyperscalers have been built to run AI, Belmares said.<\/p>\n Belmares said Texas residents have been alarmed by noise and energy use, as well as pollution risks. Those concerns could land in court after Public Citizen, Sierra Club and the Environmental Integrity Project filed a complaint July 22 against two San Antonio data centers.<\/p>\n Mary Greene, director of enforcement at the Environmental Integrity Project, said two data centers and their accompanying power sources need a higher level of permitting for air quality. <\/p>\n The data centers, one near State Highway 151 and Wiseman Boulevard, the other on Omicron Drive, are owned by Vantage, according to the complaint, and both have onsite natural gas power plants operated by VoltaGrid.<\/p>\n \u201cThe developers are building 423 megawatts of dedicated generation capacity \u2014 enough to power about a fifth of San Antonio\u2019s homes \u2014 for a pair of huge data centers using permits meant only for minor sources of air pollution,\u201d read a press release from EIP.<\/p>\n The complaint asks Vantage and VoltaGrid to seek major source permits, which it says have more stringent pollution and monitoring requirements, or risk a lawsuit. Otherwise, Greene alleged, pollutants like nitrous oxides, volatile organic compounds and formaldehyde could threaten local populations with smog, respiratory issues and cancer risks.<\/p>\n Major source permits would also give residents in the area a chance to comment on the development, Greene added.<\/p>\n Greene and Belmares both said that transparency has been a central issue around data centers. Belmares said residents often don\u2019t find out about data centers until they\u2019re about to be built. Many residents want a chance to see what\u2019s being built nearby and learn how it will affect them before construction equipment rolls down their block.<\/p>\n That\u2019s one of the recommendations that advocates are pushing local government to consider. In April, the Greater Edwards Aquifer Alliance released a report<\/a> on data centers in the area. The nonprofit promotes protection of the Edwards Aquifer, an essential freshwater source for the region, in 21 counties.<\/p>\n Rachel Hanes, policy manager at GEAA, looked at the impacts of data centers around San Antonio and suggested steps state and local governments could take, including requiring transparency and investing in water and energy infrastructure.<\/p>\n The GEAA report also recommended state legislators repeal tax incentives for data centers, charge impact fees and allow county governments to govern local land use. Outside of cities, Hanes said, many data centers do not face zoning laws and can build next to or in residential areas.<\/p>\n Hanes and GEAA Executive Director Annalisa Peace said some of their proposals have gained traction. The City of San Antonio has convened local stakeholders for advice on data center regulation.<\/p>\n Even Texas\u2019 conservative-dominated state government could weigh in. Gov. Greg Abbott, typically pro-business and anti-regulation, sent a list of proposals<\/a> to lawmakers aimed at making data centers pay for the public costs of development.<\/p>\n Vantage and VoltaGrid could not be reached for comment as of publication time. The multi-billion dollar data industry has support from advocacy organizations like the Data Center Coalition with members<\/a> such as Microsoft, Google and Amazon.<\/p>\n Dan Diorio, excutive vice president of state policy and government affairs for that coalition, said data centers are building near population centers to improve speed and reliability for the online activity they support.<\/p>\n Diorio said data centers are paying the costs required of them, including for energy and water, and he\u2019s also open to new regulatory structures that protect residents from rising utility rates while still allowing data centers to grow.<\/p>\n Data centers are also trying to innovate, Diorio added.<\/p>\n \u201cOur member companies are already deploying advanced cooling technologies, working in close consultation with water providers and local leaders,\u201d he said \u201c\u2026 Data centers are a diverse industry, and there is no one-size-fits-all approach to facility design, cooling, or regulation \u2014 which is why siting and operational decisions are made in close coordination with local utilities.\u201d<\/p>\n In San Antonio, economic development organizations see the data center boom as an opportunity.<\/p>\n \u201cThese projects represent significant capital investment in our community and are helping position the region for growth in the digital economy,\u201d said Jeff Webster, President and CEO of the Greater San Antonio Chamber of Commerce, in an email.<\/p>\n Data centers add tax revenue, Webster said. <\/p>\n Diorio with Data Center Coalition claims data centers generated $4.5 billion in state and local revenues in Texas in 2024.<\/p>\n That could be critical given San Antonio\u2019s\u00a0cash-strapped local government<\/a>. There are jobs generated during construction and Webster said he still sees good jobs attached to operating the buildings.<\/p>\n Critics have asked how many jobs are actually created for data centers. Belmares estimates that 24 to 36 workers were employed for every 150,000 square feet of data center being built. <\/p>\n For reference,\u00a0Toyota\u2019s new rear axle facility<\/a>\u00a0on the South Side is just over three times that size, but employs more than 11 times the number of workers.<\/p>\n Webster did note the strain on resources. Data centers shouldn\u2019t just grow alone, he said, there needs to be corresponding investment in local infrastructure to make sure water and power keep up.<\/p>\n \u201cContinued collaboration among utilities, local governments, developers, and the business community is essential to ensure growth occurs in a way that is sustainable and benefits the broader community,\u201d Webster added.<\/p>\n What comes next?<\/p>\n Local utilities project demand from data centers to grow, they said in a presentation to San Antonio City Council in March<\/a>. Both the San Antonio Water System and CPS Energy are said they were monitoring the growth of larger customers and trying to meet those needs.<\/p>\n City council members are beginning to discuss policy for data centers in San Antonio. While some communities and public officials, including gubernatorial candidate Gina Hinojosa<\/a>, have called for halts to data center development<\/a>, city council members are trying to figure out how they can alleviate resident concerts without necessarily halting construction.<\/p>\n Council members discussed community benefit agreements and updates to zoning rules that would create requirements for data centers. During the March 4 meeting, Mayor Gina Ortiz Jones asked how data center construction could line up with existing local infrastructure.<\/p>\n Changing city rules for development could become its own issue \u2014 some council members advocated waiting until 2027 \u2014 but those updates could also be pushed along if desire to regulate grows.<\/p>\n \u201cI am supportive of the recommendation to expedite our amendments to the UDC (Unified Development Code),\u201d Jones said. \u201cThese companies aren\u2019t waiting on our timeline. We should proactively help ourselves.\u201d<\/p>\n