Council begins regulatory work on data centers after large public turnout; staff to draft zoning and ETJ policies

Councilors heard an extended briefing on data centers, including hyperscale facilities like Hut 8’s Beacon Point, and the infrastructure they require—electricity, water and large land parcels. Ryan Skobarczyk, director of intergovernmental relations, summarized state and federal activity, noted vesting and site‑work already completed for phase 1 and 2 of Beacon Point, and described power‑grid and permitting challenges.

Council members and residents raised concerns about water demand, potential noise and light impacts, proximity to schools, emergency response and who pays for required infrastructure upgrades. Staff noted that some proposed hyperscale sites are outside city limits or in the ETJ where municipal regulatory authority is limited, but that an outside‑city‑limits (OCL) water contract creates permitting leverage. The council discussed adopting UDC text amendments to define and classify data centers, restricting them to appropriate industrial zones and requiring conditional use review, larger setbacks from residences and enforceable noise/light limits. Staff warned of state preemption risks and the mechanics of a local moratorium (a multi‑step process with a 100‑day lead time and a maximum 180‑day period).

The council voted to direct staff to draft land‑use and infrastructure policy options for data centers covering zoning, setbacks, permitting standards, IDA/contract terms and ETJ protections; the motion passed after public commenters urged prompt action and some council members urged cautious, coordinated work with the county and state lawmakers.

Ryan Skobarczyk and development services staff said they will pursue UDC amendments (target: roughly six months to draft, subject to legislative developments), prepare outreach to neighboring jurisdictions, and monitor state legislation on power‑and‑water requirements.