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Round Rock council approves first reading for Skybox data center PUD after lengthy public hearing

Round Rock City Council · December 4, 2025
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Summary

After more than an hour of public comment raising water, noise, air and grid concerns, the Round Rock City Council approved on first reading a planned unit development allowing a Skybox data center on 29.69 acres near Old Settlers Boulevard; a second reading will be scheduled at a future meeting.

The Round Rock City Council approved on first reading a rezoning ordinance to create a planned unit development (PUD) that would allow a Skybox data center on roughly 29.69 acres at 2601 E. Old Settlers Boulevard, after a lengthy public hearing in which residents raised concerns about water usage, noise, air emissions and electrical-grid impacts.

Bradley, the city planner presenting the item, told council that the PUD would restrict data center development to the northern half of the tract, require closed‑loop cooling to minimize potable water use, mandate substantial southern setbacks and buffers (including an 80‑foot development setback and a 25‑foot landscape compatibility buffer with masonry wall), and require screening of mechanical yards. Staff said the PUD would guarantee at least 500 feet of separation between the data center building and the nearest single‑family home in most places and that any substation or distribution upgrades required to serve the facility would be the developer’s responsibility.

William Shannon, representing Skybox Data Centers, said recent state law reforms (Senate Bill 6) and commitments by developers and transmission owners provide protections for residential customers during extreme events and that the company would work with Encore and ERCOT on required interconnections. Shannon said the company expects the proposed facility to be in the 50–60 megawatt range—smaller than some regional “mega” sites—and that Skybox has other regional projects under construction.

More than a dozen residents from nearby Chandler Creek, Homestead at Old Settlers Park and adjacent neighborhoods spoke at the public hearing. Speakers repeatedly asked for clearer, independently verified data on water use and emissions, questioned the “closed‑loop” cooling claim, and warned about low‑frequency noise, backup diesel generator emissions and the potential need for a new substation immediately adjacent to homes and parks. “We deserve reliable scientific evidence,” one resident said, calling for a longer comment period and more transparency. Several speakers cited national reporting showing rising electricity costs in some data‑center markets and urged the council to slow the process.

City staff said the 15‑homes‑worth annual water‑use figure cited in staff materials is derived from metered usage at existing local data centers and includes all metered use to those properties. Staff and the applicant both said any required electrical distribution upgrades would be paid for by the developer or the utility, not the city.

Councilmember Flores moved to adopt the ordinance on first reading; Councilmember Ortega seconded. The motion passed and the council declined to dispense with the second reading, meaning the rezoning must return for a second, final vote at a future meeting. The PUD, if adopted after the second reading, will become the regulating document for the site; if it is not approved the property would remain zoned Light Industrial.

The council also discussed procedural outreach: staff said mailed notices go to property owners within 325 feet (above the state‑required 200 feet), and that HOA contacts and newspaper notices are used; several residents said they did not receive or see mailed notices and asked staff to broaden communication methods going forward.