As per the Unified Development Code (UDC) Section 21.4.7, City Council may, from time to time, on its own motion, or at the request of the City Manager or his/her designee, amend, supplement, change, modify or repeal the text of any portion of this UDC in order to establish a sound, stable or desirable development within the jurisdiction of the City. At the May 6, 2026, Planning and Zoning Commission meeting, Chairman Wallace requested a UDC amendment to add Data Centers to the permitted use table and require a Specific Use Permit (SUP). The Planning and Zoning Commission held a lengthy discussion on Data Centers on July 1, 2026, and no action was taken. At the July 21, 2026, City Council meeting, Councilmember Watson requested a UDC amendment for Data Centers to be defined and to add the land use to the permitted use table.

The proposed UDC amendments include modifications to Article 5, Section 21.5.8- Permitted Use Table and Article 16- Definitions; to create a definition of Data Centers and add it to the Permitted Use Table.

Proposed Amendments:
Staff is proposing modifications to the following sections and subsections:

Article	UDC Section	Proposed Amendment
Article 5	Section 21.5.8 — Specifically the Permitted Use Table	Require a Specific Use Permit (SUP) for Data Centers in Manufacturing (Light) District (M-1) and in Manufacturing (Heavy) District (M-2)
Article 16	Definitions	Data Center: A building or group of buildings used for housing and running large computer systems, storing computer servers, data storage devices, and network equipment for the processing, storing, retrieval, collection, and transmitting of information and data.

 

To amend Part III of the Schertz Code of Ordinances, Unified Development Code (UDC) Article 5 Section 21.5.8 Permitted Use Table and Article 16- Definitions.

It is the City’s desire to promote safe, orderly, efficient development and ensure compliance with the City’s vision of future growth.

For Unified Development Code Amendments, staff looks toward the criteria listed in UDC Section 21.4.7.D. The criteria are listed below:

1. The proposed amendment promotes the health, safety, and general welfare of the City;
The proposed amendments promote the general welfare of the City by providing clarity on new uses for developers and granting City Council discretion over each proposal. The City of Schertz Unified Development Code did not have a definition for Data Centers, and the use was not included in the Permitted Use Table. The proposed amendment to Article 16- Definitions defines Data Center as a use so that it is not identified as another type of use. The amendment to Article 5, Section 21.5.8 Permitted Use Table clearly defines the specific process within the permitted zoning districts a proposed Data Center use must go through. Requiring a Specific Use Permit (SUP) allows City Council to have discretion over any proposed Data Centers. Additionally, the Specific Use Permit process allows an avenue for conditions required for the development of any proposed Data Centers. 

2. The proposed amendment is consistent with the goals, objectives, and policies of this UDC and the City;
The intent of the Unified Development Code, per UDC Section 21.1.2, includes the safe, orderly, and efficient development and expansion of the City. As per UDC Section 21.5.1, the purpose and intent of zoning districts is to promote public health, safety, and welfare by considering the character of each zoning district and encouraging the most appropriate use of land throughout the City. The proposed amendments include requiring an approved Specific Use permit (SUP) in Manufacturing (Light) District (M-1) and Manufacturing (Heavy) District (M-2) for any proposed Data Center within the City. Manufacturing (Light) District (M-1) is intended for the development of light industrial, assembly, manufacturing, warehouse, and distribution facilities that should not emit dust, smoke, or odor detectable beyond their property boundaries. Manufacturing (Heavy) District (M-2) is intended for intensive industrial and manufacturing activities that tend to emit noise, odor, dust, smoke, and vibrations under controlled conditions. These two zoning districts are the most intensive zoning districts that are not compatible or appropriate within proximity or adjacent to residential uses or zoning. Requiring a Specific Use Permit in these two zoning districts restricts Data Centers to zoning districts intended for heavy and light industrial uses. Data Centers are proposed to not be permitted in General Business District -II (GB-2) due to the location of currently approved General Business District-II (GB-2) zoning along IH-10, IH-35, and adjacent to residential uses. With the proposed amendments, the application procedure and hearing process for any proposed Data Center is clearly identified and can be implemented.

3. The proposed amendment corrects an error, meets the challenge of changing conditions, or is in response to changes in state law; and
The proposed amendments are not a result of an error or state law. The proposed amendments to Article 5 and 16 are to update the Unified Development Code as a result of a new use and a request by the Planning and Zoning Commission and City Council. Previously, there was no definition of Data Centers in Article 16, and it was not listed in the Permitted Use Table under Article 5.

4. Other factors which are deemed relevant and important in the consideration of the amendment.
The Planning and Zoning Commission and City Council requested amendments to the Unified Development Code to add Data Centers and require Specific Use Permits. Staff has ensured all UDC requirements have been met for the proposed Unified Development Code Amendments.

Staff recommends approval of PLUDC20260182.