The data center debate comes to Austin

If there's one thing that has bridged America's ferocious partisan divide, it's data centers. The bipartisan contempt they elicit has caught the tech industry off guard and prompted political leaders in both parties to distance themselves from projects they once touted as big economic wins for the community.

Austin's elected officials have taken note. Just a month after approving a major land annexation and TIRZ to enable a massive new Amazon manufacturing facility in the Dog's Head, five City Council members have called for a ban on "large data centers" in the city. Even the traditionally pro-business Kirk Watson has called for a "freeze" on any data center applications until the city puts in place new rules.

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Data centers are nothing new in Austin. There are already lots of them. But what Austin doesn't have are the types of massive "hyperscale" facilities powering the AI boom. In their remarks, some Council members seem to be focused on this second category of facility, but nobody has yet proposed a specific distinction between the two.