Amazon Expands San Antonio Data Center Footprint as Water and Infrastructure Concerns Grow Across Bexar County
As San Antonio continues to position itself as a major hub for cloud computing and digital infrastructure, a new wave of Amazon Web Services (AWS) data center projects in Bexar County is bringing both opportunity and unease to local communities.
From the rapidly developing Highway 211 corridor on the city’s west side to a separate site along Donop Road in southeast San Antonio, Amazon Data Services Inc. has filed plans for multiple large-scale facilities—each representing tens of millions of dollars in private investment. But as these projects move forward, they are also intensifying an ongoing conversation across the region: Can San Antonio’s water supply and infrastructure keep up with the pace of growth?
New $65M Amazon Data Center Planned Along Highway 211
One of the most significant filings is for Lavender Hill – Building B, a $65 million, two-story data center planned at 2200 State Highway 211, San Antonio, TX 78245.
The 93,145-square-foot facility, designed by global architecture firm Gensler, is scheduled to begin construction on November 20, 2026, with completion projected for September 29, 2028.
For residents near Alamo Ranch, West San Antonio, and surrounding communities, this project adds to a growing list of large-scale developments transforming what was once a more rural edge of Bexar County into a high-demand growth corridor.
While data centers typically operate with minimal daily traffic and limited visibility once complete, their long-term presence often signals sustained commercial investment—and increased demand on utilities that support them.
Second AWS Project Expands Footprint on San Antonio’s Southeast Side
At the same time, Amazon is advancing a separate cluster of data center work on the southeast side of San Antonio at 12807 Donop Rd, Elmendorf, TX 78112, signaling that its investment in the region is not concentrated in just one area—but unfolding across multiple parts of Bexar County.
The site, identified in filings as the “Bitter Blue” campus, includes both upgrades to an existing facility and the construction of a new, significantly larger building.
One portion of the project focuses on modernizing an existing structure with advanced liquid cooling technology—a system designed to handle the increasing heat generated by high-performance computing, including artificial intelligence workloads. This type of upgrade reflects a broader industry shift toward more efficient, higher-density operations, though it still contributes to overall resource demand.
Alongside that renovation, plans call for a new two-story data center spanning more than 119,000 square feet, representing another $65 million investment by Amazon Data Services Inc. Like the west-side Lavender Hill project, the building is being designed by Gensler.
Construction activity at the Donop Road site is expected to begin in phases starting in 2026, with work extending through early 2029.
For nearby communities in southeast San Antonio, this project introduces many of the same considerations seen on the city’s west side—balancing economic development and technological investment with ongoing questions about infrastructure capacity, energy demand, and long-term water use.
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Why San Antonio Is Attracting Data Centers
Amazon Web Services, which pioneered cloud computing in 2006, has built a global network of data centers that power everything from streaming services and online shopping to government systems and artificial intelligence platforms.
San Antonio offers several advantages that continue to attract this type of development:
- Central geographic location for data distribution
- Access to large-scale energy infrastructure
- Available land for campus-style facilities
- A growing workforce pipeline tied to regional colleges and training programs
AWS facilities are designed with layered security and operational systems, including perimeter protection, infrastructure redundancy, and strict data access controls. The company also emphasizes environmental planning in site selection, including risk mitigation for flooding and extreme weather.
But while the technical case for growth is clear, the local conversation is increasingly focused on sustainability and resource capacity.
Water Use and Infrastructure Pressures Take Center Stage
Across San Antonio and Bexar County, water availability has become one of the most closely watched issues tied to new development, especially as prolonged drought conditions and population growth continue to strain existing resources.
Data centers—particularly those using traditional cooling systems—can require significant amounts of water to regulate temperatures and maintain operations. Newer technologies, like the liquid cooling system planned for the Bitter Blue facility, can improve efficiency but still contribute to overall resource demand.
For residents, this raises practical and immediate concerns:
- How will additional water demand impact long-term supply?
- Can existing infrastructure handle simultaneous residential and industrial growth?
- Will utility upgrades keep pace—or lag behind development approvals?
These questions are not unique to San Antonio. Similar debates are playing out across Texas as cities like Dallas, Austin, and smaller regional hubs compete for data center investment while balancing environmental constraints.
A Growing Trend: Big Tech Infrastructure Across the Region
Amazon’s expansion comes on the heels of other major announcements, including a previously reported $400 million Microsoft data center project in Castroville, just west of San Antonio.
That facility—part of Microsoft’s South Central U.S. cloud region—highlighted both the economic upside of data centers and the importance of sustainable design, including efforts to reduce potable water use through recycled water systems.
Together, these developments point to a broader shift:
San Antonio is no longer just growing outward—it is becoming part of the digital backbone supporting cloud computing across the country.
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What Residents Should Watch Moving Forward
As these projects move from planning to construction, residents across West San Antonio, Southeast Bexar County, and surrounding communities can expect to see:
- Site preparation and early construction activity beginning in 2026
- Potential coordination with local utilities for power and water infrastructure
- Ongoing discussions at the city and regional level about resource management
While these facilities are privately funded and built on private land, their long-term impact extends beyond property lines—touching everything from infrastructure planning to environmental sustainability.
The Bottom Line for San Antonio Communities
The arrival of multiple Amazon data centers in San Antonio reflects strong economic momentum and positions the region as a key player in the future of cloud computing.
At the same time, it underscores a growing reality for residents: As development accelerates, so does the need for careful planning around water, energy, and infrastructure.
For many in the community, the conversation is no longer just about growth—but about how growth is managed, and whether resources can keep pace with demand.
As these projects progress, additional details around infrastructure planning, environmental considerations, and community impact are expected to emerge.
Stay connected with My Neighborhood News for ongoing coverage of development across San Antonio and Bexar County.
Tiffany Krenek has been on the My Neighborhood News team since August 2021. She is passionate about curating and sharing content that enriches the lives of our readers in a personal, meaningful way. A loving mother and wife, Tiffany and her family live in the West Houston/Cypress region.