US data center firm Sabey is looking to develop a new campus outside Austin, Texas.

As reported by BizJournal and San Antonio Express-News, the company is exploring plans to develop a new site in San Marcos.

The San Marcos City Council on June 3 approved a request from the firm to start negotiations for a development agreement for the project.

"This is just to start a conversation, not any kind of final approval," San Marcos Mayor Jane Hughson said during the meeting.

According to filings, Sabey is seeking to develop some 786-acres southwest of the intersection of South Old Bastrop Highway and Centerpoint Road. The site is currently owned by Carson Select Investments LP.

Few details around the planned development have been made public, but the project would include an estimated 184 acres of proposed light industrial development and a Pedernales Electric Cooperative substation.

"After being overwhelmed with unsolicited offers on our entire property, we selected Sabey in July 2024 for this more focused area,” Carson Select Investments noted in documents provided to the council. “A testament to their capability, Sabey's existing location in Round Rock will be home to the Texas Advanced Computer Center (TACC) at the University of Texas' new horizon supercomputer.”

Mark Noonan, senior vice president of revenue for Sabey, said the company is in the "first stage" of working through the development agreement. He told BJ: “We're looking for a new campus in Central Texas. Round Rock has obviously been great. San Marcos is one we're actively working on.”

San Marcos is located between Austin and San Antonio in Texas, two of the state’s largest data center markets. Two other data center projects are currently in the works in the Hays County city. CloudBurst is planning a gas-powered data center with Energy Transfer, aiming for a 2026 completion date. Highlander SM One LLC is planning another facility on 200 acres nearby. Both are facing pushback from locals.

A joint venture between Sabey Corporation and National Real Estate Advisors, Sabey Data Centers operates more than four million square feet of data centers across the US, with six data center sites in Quincy, Seattle, and East Wenatchee, Washington; New York City; Austin, Texas; and Ashburn, Virginia.

First announced in early 2022, the company launched the first phase of its SDC Austin data center campus in Round Rock in October 2024. Based on the site of a former Sears Teleserv building located at 1300 Louis Henna Blvd, the campus will offer up to 84MW of critical power capacity across two buildings at full build-out.

Austin is home to Lumen, Digital Realty, CyrusOne, DataBank, Colovore, and Cogent. Stream, CyrusOne, Microsoft, H5, CloudHQ, AWS, and Lumen all have a presence in San Antonio.