Round Rock Citizens Pack Town Hall as Council Votes on Data Center Commercial Space

The Round Rock City Council chamber was filled to capacity in February 2026 as residents, business leaders, and advocates gathered for a pivotal vote on a major commercial development proposal. The subject of the intense public interest was a rezoning application submitted by Skybox Datacenters, a prominent U.S. operator of data center campuses, seeking to construct a new large-scale facility on a vacant parcel of land within the city limits. This meeting highlighted the ongoing tension between aggressive economic development goals and community concerns over infrastructure strain, environmental impact, and long-term urban planning in one of Texas’s fastest-growing cities.

Key Points at a Glance

• The Proposal: Skybox Datacenters is requesting a rezoning from agricultural/residential to commercial/industrial use for a specific vacant tract to build a new data center facility.
• The Vote: The Round Rock City Council held a public hearing and subsequent vote on the rezoning application, following months of review by the Planning and Zoning Commission.
• Community Response: The meeting saw significant turnout, with citizens expressing both strong support for economic benefits and deep concern over traffic, water usage, noise, and property value impacts.
• Stakeholder Positions: The city’s economic development arm supports the project for its tax base and job creation potential, while some neighborhood associations and environmental groups oppose it.
• Next Steps: The council’s vote (approval, denial, or postponement) will determine the project’s immediate future. An approval would still require detailed site plan approval, building permits, and adherence to city development codes.

Background: The Rise of Data Centers and Round Rock’s Growth

Understanding the Data Center Industry

Data centers are specialized facilities housing thousands of servers, storage systems, and networking equipment. They are the physical backbone of cloud computing, online services, artificial intelligence, and enterprise IT. The industry has experienced explosive growth due to increasing digitalization, streaming services, and the computational demands of AI models. Major operators like Skybox Datacenters, Equinix, Digital Realty, and others develop large “campuses” often spanning hundreds of thousands of square feet. These facilities are massive consumers of electricity (for servers and cooling) and water (for evaporative cooling systems), and they generate significant truck traffic for construction and ongoing maintenance.

Round Rock’s Economic Development Strategy

Round Rock, part of the Greater Austin metropolitan area, has long pursued a strategy of diversifying its economy beyond traditional retail. The city has actively courted technology and advanced manufacturing firms, earning nicknames like “The Sports Capital of Texas” and a hub for tech companies. Attracting a data center aligns with this strategy. Data centers are considered a high-value, low-impact industrial use in terms of employee count per square foot, but they offer substantial property tax revenue for municipalities, often requiring minimal municipal services compared to residential or retail developments. The proposed site, described as vacant and previously used for agricultural or light commercial purposes, represents a large, contiguous parcel suitable for such a facility.

The Specific Proposal: Skybox Datacenters

Skybox Datacenters, based in the U.S., develops and operates multi-tenant and single-tenant data center facilities. Their proposal for Round Rock typically involves a phased development, potentially beginning with one or more large buildings (often called “shells”) each measuring tens of thousands of square feet. The application before the council was primarily for a rezoning—a change in the legally designated use of the land. This is the first major governmental hurdle. The subsequent steps involve a detailed site plan approval process, which addresses building placement, landscaping, buffers, traffic ingress/egress, utility infrastructure (particularly electrical and water), and compliance with the city’s specific data center development regulations, if any exist.

Analysis: The Core of the Debate

Arguments in Favor: Economic Incentives and Fiscal Health

Proponents, including the Round Rock Chamber of Commerce, city economic development officials, and some residents, frame the project as a net positive for the community. Key arguments include:

• Substantial Property Tax Revenue: Data centers are among the highest-value commercial properties per acre. The assessed value of a multi-million square foot facility would inject millions annually into the city’s general fund and local school districts (through property taxes), potentially funding public services, schools, and infrastructure without raising residential tax rates.
• Job Creation: While the construction phase creates temporary jobs, the operational phase employs a relatively small but highly skilled workforce for facility management, security, and engineering. These are typically well-paying technical jobs.
• Attracting Related Tech Ecosystem: A major data center can serve as an anchor, attracting other technology-dependent businesses, software firms, or corporate headquarters that require reliable, high-capacity digital infrastructure, thus further diversifying the tax base.
• Efficient Land Use: The vacant parcel, if left undeveloped, generates little tax revenue. The proposal represents a productive use of land that can help offset the high costs of providing services to sprawling residential areas.

Arguments in Opposition: Community and Environmental Concerns

Opposition, organized through neighborhood groups and citizen advocacy forums, centers on quality-of-life and long-term sustainability issues:

• Infrastructure Strain: Critics question whether existing road networks, water supply systems, and electrical grids can accommodate the additional load without costly upgrades funded by taxpayers. The high water consumption for cooling is a particular concern in a region that has experienced drought conditions.
• Traffic and Safety: The construction phase will bring hundreds of heavy truck trips daily. Operational phases involve regular delivery and maintenance vehicle traffic. Concerns focus on increased congestion on local arterials, road wear, and safety near schools and residential areas.
• Environmental Impact: The carbon footprint of data centers, while improving with renewable energy adoption, remains significant. The water usage model (often evaporative cooling) is scrutinized in water-conscious Texas. Noise from large HVAC systems and backup generators is also a common resident complaint in other communities with similar facilities.
• Precedent and Land Use: Opponents argue that rezoning this parcel for heavy industrial use sets a precedent that could change the character of surrounding areas, potentially affecting property values and future residential development plans. They may advocate for the land to be used for purposes more aligned with the surrounding community, such as commercial retail, office, or recreational space.
• Long-Term Commitment: Data centers are built for 20-30 year lifespans. Critics question whether the city is locking in a specific industrial use for decades without fully understanding the future technological and environmental landscape.

The Legal and Regulatory Framework

The council’s decision is bound by several legal and procedural standards:

• Comprehensive Plan Consistency: The rezoning must be consistent with the city’s Comprehensive Plan, a long-range document guiding growth and land use. Staff reports typically analyze this alignment.
• Zoning Ordinance Compliance: The proposed use must be permitted (or conditionally permitted) within the requested zoning district. The council can attach conditions to a rezoning approval to mitigate impacts (e.g., specific buffer zones, noise limits, traffic studies).
• Due Process: The public hearing requirement ensures property owners and citizens are notified and given an opportunity to speak. The council must act as a quasi-judicial body, basing its decision on the evidence presented (staff reports, expert testimony, public comment) rather than general popularity.
• State Law: Texas zoning law grants municipalities broad authority but also imposes procedural requirements. There is no statewide mandate for data centers to use renewable energy or specific water-cooling technologies, though local regulations can impose stricter standards.

Practical Advice for Round Rock Residents

How to Get Informed and Involved

For residents concerned or interested in this and future development proposals:

1. Access Public Documents: Visit the City of Round Rock’s official website. Search for the agenda packets and staff reports related to the Skybox Datacenters rezoning case (often listed by a case number like “Z-2025-XXXX”). These documents contain the applicant’s plans, staff analysis, and recommendations.
2. Attend Meetings: City Council and Planning & Zoning Commission meetings are open to the public. Agendas are posted in advance. Public comment periods are your opportunity to speak directly to decision-makers. Arrive early, sign up to speak, and keep comments concise and fact-based (typically 2-3 minutes).
3. Contact Your Council Member: Find your district representative on the city website. Emails, phone calls, and letters expressing your support or opposition, with specific reasons, are effective. Personal, reasoned communication carries more weight than form letters.
4. Form or Join a Community Group: Coordinating with neighbors who share your concerns can amplify your voice. Groups can hire independent consultants to review traffic studies or hydrological impacts if they have the resources.
5. Understand the Process: Know the difference between rezoning (the land use change) and site plan approval (the detailed building and layout design). Opposition or support can be targeted at different stages.

Questions to Ask at the Hearing

Whether you are for or against the project, asking specific, technical questions can elevate the discussion:

• What is the projected peak water usage, and how does it compare to the city’s current supply and drought contingency plans?
• Has a full traffic impact analysis been conducted? What are the projected levels of service at key intersections during peak construction and operational hours?
• What specific noise mitigation measures (e.g., acoustic barriers, equipment layout) are proposed, and what are the guaranteed decibel limits at the property line?
• What is the plan for renewable energy procurement? Is there a commitment to a certain percentage of solar or wind power?
• What financial assurances (bonds, fees) will the developer provide to cover any required off-site infrastructure improvements?
• What are the estimated total assessed values for tax purposes at full build-out?

FAQ: Addressing Common Questions

Will this data center create many jobs for Round Rock residents?

Data centers are highly automated. While they create high-paying technical jobs in operations, engineering, and IT, the total number of permanent positions is relatively low compared to the facility’s size—often in the range of 50-200 jobs for a large campus. The primary economic benefit is property tax revenue, not widespread employment.

How much water will the data center actually use?

Usage varies dramatically by design and climate. A large data center in a hot, dry climate like Central Texas using traditional evaporative cooling can consume hundreds of millions of gallons of water annually. Newer designs use advanced air-cooling, hybrid systems, or even closed-loop water systems that recycle water. The specific water usage model must be disclosed in the application and evaluated by city staff and the public.

Are data centers noisy? Will I hear it from my home?

Modern data centers generate continuous noise from large HVAC systems, chillers, and backup generators (tested monthly). Well-designed facilities with proper acoustic mitigation (building orientation, sound walls, vegetation buffers) can contain noise to near-inaudible levels at property lines. However, if the proposed site is adjacent to residential areas, noise is a legitimate concern that should be addressed with specific decibel level guarantees in the approval conditions.

What happens if the council approves the rezoning but the company later doesn’t build?

Rezoning changes the *allowed* use of the land in perpetuity, unless rezoned again later. If Skybox Datacenters obtains rezoning but subsequently fails to develop the site, the land would remain in the new commercial/industrial zoning. The owner could then sell it to another company for a similar use, or develop it themselves according to the new zoning. The rezoning itself is a permanent change in the land’s legal designation.

Can the city impose requirements on renewable energy or water recycling?

Yes. Through the rezoning and site plan approval process, the city can attach conditions of approval. These can mandate specific sustainability standards, such as a minimum percentage of renewable energy in the power mix, the use of air-cooled or hybrid cooling systems to reduce water consumption, or participation in water reclamation programs. The strength and enforceability of these conditions are key negotiation points.

Conclusion: A Decision with Lasting Implications

The packed Round Rock City Council meeting was more than a vote on a single parcel of land; it was a public forum on the city’s growth identity. The rezoning request from Skybox Datacenters represents a classic 21st-century municipal dilemma: the immediate fiscal allure of a high-value, low-employment industrial use versus the long-term responsibility of managing infrastructure capacity, environmental resources, and community character.

The council’s decision, whatever it may be, will set a precedent. An approval signals Round Rock’s commitment to being a competitive player in attracting digital infrastructure, banking on future tax revenue to fund a growing population. A denial or deferral suggests a more cautious, residentially-focused approach that may require seeking revenue from other sources or rethinking the economic development playbook for vacant commercial parcels.

For citizens, the event underscored the importance of civic engagement in land-use decisions. The debate illuminated that “commercial space” in this context is not a generic term but a specific, resource-intensive use with tangible consequences for traffic, water, and noise. The final vote, following the passionate public input, will chart a course for this specific site and influence how Round Rock navigates the balance between progress and preservation in the years to come. All eyes remain on the council’s official record and the subsequent steps in the city’s development process.

Sources and Further Reading

• City of Round Rock, Texas. Official Website – Agendas & Minutes. (Search for