Austin Could Treat Data Centers Like 'Adult Businesses' Under New Regulations
By Nathan Langley
Posted: Oct 31, 2026 / 02:21 PM PDT
Updated: Oct 31, 2026 / 02:21 PM PDT
SHARE
On the outskirts of Austin, Texas, a glimpse into the potential fate of data centers awaits. Along U.S. Route 290, drivers pass by businesses like "Pancy Inc" and "Bare Cabaret," establishments that, according to the city's code, would be considered "adult-oriented." These businesses, along with data centers, could soon share a similar regulatory path.
Code Update
A city memo, released Oct. 28, outlined the proposed regulations for data centers to the Austin City Council and Mayor Kirk Watson. This action followed an August resolution instructing staff to utilize Austin's land development code for data center restrictions.
Two-Phase Approach
Staff recommended a two-step regulatory framework:
- Define Data Centers: Update Title 4 of the city code to specifically include data centers, which house computer servers.
- Establish Land Use: Conduct peer city research and engage with local stakeholders to draft policies, potentially through zoning regulations.
"Folks want reassurance that these polluting, noise-making, light-emitting facilities won’t be cited where people live, play, and work," stated Mike Siegel, representing District 7 on council. He referenced Title 4's existing regulations for "undesirable" businesses, such as "adult arcades," as examples.
The process could conclude in May 2027, with Austin finalizing its data center regulation framework.