Data centers won’t be approved in Lubbock for a while – here’s why

Large scale data centers are not likely coming to Lubbock soon – for a bunch of reasons:

• The city and a group pushing for an 18-month moratorium on data centers are close to an agreement on a 90-day moratorium with another 90-days to possibly follow – because the 18-month proposal is illegal. A first vote expected Tuesday.
• The city’s Planning and Zoning Commission expects more data center restrictions in place by November – its chair says the group needs more time to resolve questions.
• The state slowed down data center expansion through a process called “Batch Zero” and none of the data centers on the list are planned for Lubbock, according to Mayor Mark McBrayer.
• The upcoming Texas legislative session is expected to address data center concerns.
• Meanwhile, at least one Lubbock official wonders if the state’s concerns about data centers will only last through Election Day.

City, Save Lubbock on verge of agreement

Advocacy group Save Lubbock got enough signatures from registered voters this summer to force a City Council vote on their proposed 18-month moratorium on data centers or take it to an election.

McBrayer said 18 months is unenforceable under state law, so he worked with Save Lubbock’s Stephen Sanders – plus Gordon Harris, councilman for District 2 and Christy Martinez, councilwoman for District 1 to start the process of a 90-day moratorium. That’s the maximum allowed under state law that can be renewed for another 90 days.

Tuesday the council will vote on the process, which then would include two public hearings. After that, it will need a first and second vote of the Council.

“I’m hopeful this will avoid any need for a public election of an unenforceable ordinance. What we tried to work with them was to get an ordinance that is legally enforceable,” McBrayer said.

Sanders said, “Me and Mark have been working on that together.”

“I wrote the original resolution. … We changed a little bit of the language in it to make it within the scope of the law. Me and Mark have met several times to work out that language. I like it the way we’re going to present it,” Sanders said.

If it passes, and McBrayer is confident of its chances, that puts a process in motion to give Lubbock up to six months of delay. And if Sanders and the others who led the signature drive agree to it then there would be no further call for public vote on the matter.

“It gives people that clarity and the confidence that nothing will happen until the state Legislature weighs in and we know where we are at the end of the legislative session,” McBrayer said.

But if the measure fails, Sanders said he’ll then push for an election in accordance with the city charter and the successful signature petition.

Note: This story will be updated with the results of City Council’s decision.

Click here to read the moratorium resolution.

P&Z members still want answers

Lubbock will likely have more restrictions for data centers by late November according to the chair of Lubbock’s Planning and Zoning Commission (P&Z).

The proposed data center regulations were put on hold after a September 10 public hearing. The move was not a rejection but a desire for more discussion. The P&Z will pick them up again for more discussion in October and then vote in November.

“We’re not a rubber stamp,” said James Bell, P&Z chairman.

“This is really such an important … hot item, not only in Lubbock but, across the state and across the country. … There were just a lot of different things that we all had questions on,” Bell said.

P&Z members hated the idea of going forward “without questioning some of it,” Bell said.

Sanders said, “I don’t think much will change.”

“I wish they could have moved faster, but I also understand the fact that they had some questions they want to ask. And I think that’s fair,” Sanders said.

Another reason Lubbock has time

State officials including Governor Greg Abbott took action to slow down and scrutinize development of hyperscale data centers this summer. For example, ERCOT, the state power grid operator, started a new connection process (approved by the Public Utility Commission of Texas) for businesses seeking 75 megawatts or more.

The idea – called Batch Zero – is, “… large electricity users like data centers only connect in quantities and locations the Texas grid can reliably support.”

McBrayer thinks Lubbock has time to consider data center restrictions in the UDC.

“I’m fine with it because nobody’s come to us and Batch Zero is pretty much closed. If anybody wants a large a data center … they have to have gotten into Batch Zero. And nobody got into Batch Zero that is interested in coming to Lubbock,” he said.

P&Z looking ahead to October and November

P&Z board members shared concerns and questions in the public hearing which will be discussed in the October P&Z meeting. For example, the proposed regulations only pertain to data centers, not other businesses.

Board member Drew Gray said, “I think large power users or large water users need to be the definition. I don’t understand or appreciate maybe why this is limited to just data centers. I think these certain requirements or feasibility studies should be in place for anybody that could impact our resources.”

Bell, in speaking with LubbockReport.com, agreed and said, “I really would just like to say large scale utility and water user.”

There was also concern about a specific use permit in addition to zoning requirements; making a business come back for a second hearing just to hear P&Z say, “You checked all the boxes, good job.”

P&Z board members also expressed concern over the 300-feet setback, which is 500 feet if there’s on-site generation. The setback is required when the neighboring properties are not General Industrial or Light Industrial.

Kristen Sager, director of planning, said it would not necessarily have to be empty or wasted land.

“If they want to allow another use that is not part of the data center or the generation to go in that 500-foot buffer that’s allowed in that district, they could,” Sager said.

There were also concerns about gaming the system. Could a data center developer buy different parcels and split the operation into different holding companies as a way to bypass the definitions and limits?

Bell said, “No matter what you put the rules in, there are going to be people that try to find a way to skirt around it. I mean, I think that’s just inevitable.”

LubbockReport.com asked Bell if the regulations become too broad, could they harm economic development?

“That very well could be. And that’s why you’ve got to be very careful. I want to be pro-business because business is good for Lubbock,” Bell said.

Bell would rather other cities take the lead on data centers because they’re relatively new and raise questions that have, in his mind, not been fully answered. He cited a hyperscale data center nearing completion in Abilene.

“If you just go and look at Abilene, I have some relatives that live there, and some people that I sit by at the Tech football games. So, I’ve been asking them what it’s like. Well, the people hate it. And yeah, there’s a lot of economic boom going on now. But when they finish, what’s going to happen?” Bell said.

Truly sincere or just political

Bell is worried the state’s new-found caution might not last long after the November 3 election.

“It’s election time. Are you going to promise everything in election time? Because, if you remember, our governor was all for this at first, and now all of a sudden he’s putting the brakes on it. So, is it political, or does he really, truly mean it?” Bell asked rhetorically.

Sanders said, “We don’t know what they’ll do. And it’s sad that we’re even having to be here in this place of uncertainty and gray area,” Sanders said.

Bell would like Lubbock to have more local authority, not less.

“Historically, over the last few years, the state has been taking powers away from city and [county] governments. … They treat us like we don’t know what’s going on,” Bell said.

“You can’t lump Lubbock, Texas, with Houston or Dallas. We’re just not the same,” Bell said.

“And so, when they try … to do the ‘one answer fits all,’ it’s not going to work,” Bell said.

Sanders agreed more local authority is needed, saying, “I hope that the Legislature will do the right thing and put some guardrails in place.”