SAN ANTONIO – Mayor Gina Ortiz Jones has recently addressed two significant challenges facing San Antonio: the regulation of an increasing number of data centers establishing operations in the city, and the city’s strategy to address a considerable two-year budget deficit without raising property taxes.
Regarding the influx of data centers, Jones conveyed her cautious stance towards a proposed moratorium, which has garnered support from several council members. Instead, she prefers to await recommendations from city staff concerning potential zoning changes and regulatory requirements. She has requested that city officials explore measures to prohibit the use of potable water in data centers, enhance monitoring of air quality and noise pollution, and mandate treatment of cooling effluent to mitigate environmental impacts.
“I’ve learned folks don’t want to live next to two things,” Jones stated, highlighting community sentiment. “They don’t want to live next to an ICE (U.S. Immigration and Customs Enforcement) facility, and they don’t want to live next to a data center.” This statement underscores the importance of community feedback in decision-making processes.
Jones has also expressed concerns regarding transparency in the dealings between utilities and data centers, noting that some agreements involve nondisclosure clauses at the request of the companies involved. The City Council is set to receive an update from staff in October, which will inform any further actions.
On the fiscal front, Mayor Jones reiterated that increasing property taxes would be considered a last resort. The city’s proposed financial plan includes a 3.9% property tax increase for the 2027 fiscal year, followed by a 4.4% increase in 2028, alongside $90 million in budget reductions and $30 million in new fees aimed at addressing the budget shortfall.
In a proactive approach, Jones advocates for redirecting funds from the Ready to Work program to support educational initiatives such as the San Antonio Education Partnership and Project Quest, before resorting to tax increases.
A critical vote regarding the extension of a tax increment reinvestment zone is scheduled for September 10, which could significantly influence the city’s financial trajectory.
For more insights and detailed discussions, viewers can catch the full interview available in the video player above.
