Round Rock’s latest growth fight is not over yet. On Thursday, the City Council gave preliminary approval to rezone nearly 30 acres east of A.W. Grimes and south of East Old Settlers Boulevard for a Skybox data center, then agreed to bring the issue back in January for a second reading. That first vote came after about 20 speakers raised concerns about noise, water use, health impacts, and possible pressure on local electricity rates. The first-reading vote passed unanimously, with one council member absent.
What's on the council docket
The rezoning, listed as File No. 2025-326, would shift approximately 29.69 acres from LI (Light Industrial) to PUD No. 159 to allow a data center, according to Legistar. The proposed PUD splits the property into three coordinated parcel areas: a data center, an electric substation, and open space. It also lays out standards for site access, screening, and buffer walls that the city would enforce through the PUD process. Because the item cleared its first reading, the council must take a second vote for final approval unless members choose to waive that step.
Site plan, cooling and water estimates
City staff say the PUD would require a closed-loop cooling system, filled once and occasionally topped off, instead of the high-water evaporative systems used at some older facilities, according to the City of Round Rock. The city estimates a closed-loop system of this size would need about 10,000 gallons for its initial fill and that the facility would use roughly the same amount of water in a year as about 15 homes. Staff also told council the data center’s building footprint would be roughly equivalent to about 100 homes while producing property-tax revenue comparable to roughly 500 homes.
Neighbors pushed back; Skybox responded
About 20 residents addressed council members and Skybox representatives during the hearing, raising concerns about noise, water use, health impacts, and possible impacts on local electricity prices, as reported by Community Impact. Resident Karen Choate warned that a high-electricity-usage data center could drive up residents’ utility bills. Kensington Neighborhood Association president Richard Parsons urged neighbors to try to build a working relationship with Skybox, citing experience with other operators. William Shannon, Skybox’s vice president of development strategy, told the council the company has not yet secured a commitment from Oncor for power delivery and said the developer would be responsible for constructing some or all of any needed substation.
What comes next
Because the council approved the measure on first reading, the ordinance will return to the agenda for a required second reading in January, according to the city’s meeting record. The project’s timeline now depends on Skybox securing power and meeting site-development conditions before the company can begin construction.
Big picture: data centers in Round Rock
Round Rock has become a regional hub for data centers in recent years, with major projects by Sabey and Switch and multiple rezonings to accommodate hyperscale and colocation facilities, the city notes on its information pages. The Skybox application is the latest in a series of proposals that promise substantial property-tax revenue while drawing fresh scrutiny over utilities, noise, and how well the projects fit next to existing neighborhoods.
