Highlander SM One data center (Francis Harris Lane, San Marcos)
Also called: Highlander SM One LLC
Highlander SM One LLC, from Fort Worth, wanted to build a $1.5 billion data center on 200 acres on Francis Harris Lane between San Marcos and New Braunfels, next to the Hays Energy power plant. After hundreds of residents came out, mostly against it, the City Council voted 5-2 at 2:14 a.m. to deny the land use change. An earlier zoning change also failed in summer 2025.
Where things stand: San Marcos City Council denied the land use change 5-2 on Feb. 18, 2026. The developer could refile after six months.
🕒 Latest update (Feb 18, 2026): San Marcos City Council voted 5-2 to deny a land use change for the data center.
What we know
- 📍 WhereFrancis Harris Lane, next to the Hays Energy power plant, San Marcos, Hays County
- 🏢 CompanyHighlander SM One LLC
- 🌳 Size200 acres
- 💵 Cost$1.5 billion
❓ Still unanswered
Nobody has answered these in public yet. Can you help find out?
- Will the developer refile after six months (about August 2026)? 🙋 I'll find out
- Will the developer try to build outside city control instead? 🙋 I'll find out
What happened so far
- July 2025City Council failed to pass a zoning change for the data center (it needed a supermajority).
- Feb 18, 2026San Marcos City Council voted 5-2 to deny a land use change for the data center.
Local votes and rules
📌 Other
Hays County commissioners voted unanimously to set up a review board for projects that use a lot of water, like data centers. Until the end of 2026, the county will hold off on optional approvals for these projects, such as tax breaks and development deals. The county judge said it is not a ban.
An aerial photo of the area.
Where this comes from
- San Marcos City Council blocks proposed data center · KUT · Feb 18, 2026
- Texas data centers map and list · Cleanview (tracker) · Oct 2026
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