Round Rock weighs rezoning request for Skybox data center next to Chandler Creek neighborhood homes
City Council set to revisit rezoning after first-reading approval
Round Rock officials are preparing for a second City Council vote on a rezoning request tied to a proposed Skybox Datacenters project near East Old Settlers Boulevard and A.W. Grimes Boulevard. The request would change roughly 29.69 acres of currently vacant land from Light Industrial zoning to a planned unit development (PUD), a framework the city uses to add site-specific standards beyond base zoning.
The proposal advanced through the city’s Planning & Zoning Commission on Nov. 5, 2025, with staff recommending approval. City Council approved the rezoning on first reading on Dec. 4, 2025, and scheduled a second reading for Feb. 12, 2026.
Why neighborhood compatibility is central to the debate
The property backs up to the Chandler Creek neighborhood, making compatibility measures—such as buffering, noise controls and screening—an organizing issue for residents who have questioned whether the location is appropriate for a data center. City officials have said the site is already entitled for a range of light industrial uses and is not zoned for residential development.
In recent public discussions, residents have raised concerns about potential noise, backup generator testing, and the project’s electricity and water needs. Others have urged the city to pause additional data center proposals until broader rules are in place, rather than evaluating each project individually through rezoning cases.
Project outline: data center, substation and open space
Under the PUD concept discussed in city materials and public meetings, the site would be organized into multiple areas to specify allowed uses, including a data center component, an electrical substation area and an open-space tract adjacent to the neighborhood. City staff have described compatibility requirements intended to exceed baseline light industrial standards, including enhanced landscaping and screening near nearby single-family homes.
Utilities: closed-loop cooling and large-load grid rules
Water consumption has been a focal point in a region where long-term supply planning is closely watched. City staff have said the proposal calls for closed-loop cooling—systems designed to recirculate cooling water rather than rely on high-volume evaporative cooling. In recent briefings, staff compared anticipated annual use to a small number of single-family households, while noting that the system is filled initially and then topped off periodically.
Electric demand is also under scrutiny as Texas grapples with rapid load growth. In 2025, state lawmakers enacted Senate Bill 6, directing regulators to establish interconnection standards for very large loads in the ERCOT region and setting a 75-megawatt threshold for certain requirements. The law is aimed at reducing the risk of stranded infrastructure costs while addressing reliability concerns tied to the scale and timing of new large-load projects.
What happens if the rezoning is denied
City staff have emphasized that a denial would not freeze development on the property. The tract would remain Light Industrial, and other industrial projects could proceed by right. The property owner has confirmed that a warehouse and distribution center concept is among the alternative plans discussed for the site.
Second-reading hearing and vote: Feb. 12, 2026
Location: Round Rock City Hall, 221 E. Main St.
At issue is not whether the land can be developed, but what form of development the city will allow—and under what neighborhood-compatibility standards.