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Tell Austin City Council “NO” to TAX BREAKS for Data Centers and Artificial Intelligence

This Thursday, May 7th, the Austin City Council will vote on Item 24, a resolution that opens the door to economic incentives for data centers and the artificial intelligence industry. We need you at City Hall!

The resolution establishes a “new economic development framework” that names “Data Management & Artificial Intelligence” as one of the ten Target Economic Sectors in Exhibit A, which calls it an “explosive growth sector: three of Austin's four largest-ever venture funding rounds closed in 2025; enterprise AI and data infrastructure.”

If Council passes Item 24 on Thursday, here is what it actually does:

• Puts tax rebates on the table. Data centers would become eligible for Chapter 380 performance grants, where Austin’s taxpayer dollars would be used to incentivize data centers and AI-backed companies to move here!
• Turns on a fast lane for permits, immediately. The resolution from the Council directs the City Manager to activate a “permitting concierge service” for any target-sector project already in the development pipeline.
• Pre-clears land. The City would identify “ready sites” in advance to enable rapid recruitment of data centers and AI-backed companies. 

Austin's Environmental Commission Asked for the Opposite

On April 1, 2026, Austin's Environmental Commission voted 10-0 to adopt Recommendation 20260401-004, urging the City Council to take a coordinated, protective approach to data center development in Central Texas. Among other things, the Commission asked Council to:

• Prohibit tax breaks and financial incentives for data centers locating in Austin;
• Invoke a moratorium on all new data centers in the City Limits and the Extraterritorial Jurisdiction, in alignment with bipartisan national calls;
• Publish the report on "projected environmental impact and resource usage of local data centers over the next ten years" that Council itself directed the City Manager to produce in April 2025;
• Require Tier II and higher data centers to generate at least 50% of their electricity onsite from renewable sources;
• Require Data centers to use reclaimed water and direct investment in the City's purple pipe program via a water mitigation fund;
• Require operational curtailment during declared electrical emergencies;
• Mandate Council approval for large-load extension requests;
• Define "data center" in City Code;
• Require public notice to property owners within one mile of any data center construction site.

Item 24 does none of this. It moves in the opposite direction.

This resolution will pave the way for tax breaks and other incentives for data centers that drink hundreds of thousands of gallons of water a day and pull as much electricity as small cities. This Thursday, we need you at City Hall. Speak for the springs, the grid, and the water.

Here's How to Show Up!

1. Speak at City Council on Thursday, May 7
Where: Austin City Hall, 301 W. 2nd Street, Council Chambers
When: Meeting begins at 10:00 AM; AGAINST Agenda Item #24 (Regular Meeting) (Sign up to speak online before noon on Wednesday or at City Hall before 8 am on Thursday).  Speaker Form Here.  

2. Spread the Word - Send this email to your friends and neighbors that care about Austin’s water and are concerned about the proliferation of data centers locally

How a Simple Change to Building Codes Could Save Birds’ Lives

A Massive Outcry Against Proposed MoPac Expansion

THANK YOU!

The Austin community flipped the script for the Central Texas Regional Mobility Authority, who claims that its 8.77-mile expansion, with an additional 6-8 lanes over the Edwards Aquifer Recharge Zone, will have “no significant impact” on Austin’s environment. More than 6,000 comments were filed through the Better Mopac Coalition advocacy page, with thousands more submitted directly to CTRMA. The home stretch brought a massive wave of support and joyful resistance. On Sunday, nearly a hundred people gathered at Barton Springs Pool with songs and education led by Singing Resistance Austin, Jade Fusco, Mary Olivar, Matt Dietrichson, and others. It was a strong, spirited close to a 75-day sprint of collective action, grounded in shared purpose and place.

What’s Next?
While the official public comment on CTRMA's draft Environmental Assessment closed at midnight Sunday, the CTRMA Board of Directors will not decide on its next steps until after its staff has prepared responses to public comments and made a recommendation. That will likely be in late summer or this fall. Between now and then, please stay engaged with us and the Better MoPac Coalition and watch for opportunities to speak up.

In the short term, we will share expert reports and summary comments from SOS and the Better MoPac Coalition. More updates to come as the process moves forward. Stay tuned!

In Solidarity and Gratitude, 

SOS Alliance