Lockhart takes early steps for regulating data centers 

By Anthony Collins

LPR Editor                       

   As Central Texas continues to see rapid growth in data centers and cryptocurrency mining operations, the City of Lockhart is beginning to lay the groundwork for how those facilities could operate within city limits.

   During a lengthy meeting last Tuesday night, the Lockhart Planning and Zoning Commission approved a recommendation for an ordinance that would create rules for where future data centers and crypto mining facilities could be built and how they would be defined in city code.

   City leaders stressed that there are currently no active applications for data centers inside Lockhart city limits. Still, officials said they want regulations in place before companies begin submitting proposals. “We’ve seen the public reaction elsewhere,” Planning Director David Fowler told commissioners. “We think it would be good to have regulations on the books before we start dealing with anybody who would apply for one of those here.”

   The proposed ordinance would separate data centers from cryptocurrency mining facilities and limit both uses to industrially zoned areas. The discussion comes as nearby Caldwell County has become a growing target for large-scale data center development. Several projects are already underway outside Lockhart’s jurisdiction, including a major Prime Data Centers project west of the city along Farm to Market Road 2720. Construction activity and infrastructure work are already visible at the site.

   While some city leaders see the ordinance as a proactive step, several residents voiced concerns during public comment that the rules could unintentionally encourage more development instead of discouraging it. Claudia Hollern, representing Caldwell Data Center Action, urged officials to adopt stronger protections before additional projects move forward.

   “Our fear is this will actually open it up for certain areas,” Hollern said. “We feel as citizens we have to be more careful about how we write things and really thoroughly think things through in order to protect ourselves.” Residents also raised concerns about the potential strain large facilities can place on water and electrical infrastructure, issues that have become increasingly common in communities dealing with rapid data center expansion.

   Commissioners spent roughly an hour discussing amendments and additional safeguards before ultimately approving the recommendation. Among the proposed changes was redefining the term “telecommunications” to specifically exclude data centers.

   The ordinance recommendation will now move forward for further consideration by city leaders as Lockhart continues preparing for the possibility of future data center development.