South Central Austin Edition | November 2025

Development

BY BEN THOMPSON

Power delivery crucial for local tech expansions As the Austin metro area continues to see expansion in the technology sector, industry lead- ers are highlighting key critical area of interest: power delivery. What they’re saying Ed Latson, CEO of the regional economic partnership Opportunity Austin, said power delivery is now “up there” with workforce in terms of priorities for international businesses exploring potential projects in the area. “They want to know if they’re going to be able to get it now, and also what their plans are for the future,” he said at an October panel discussion. Eric Van Hensbergen, a leader at technology company Arm, said powering buildings has become a No. 1 consideration for corporate expansions—and one that’s especially relevant for data centers.

Low-income housing opens in East Austin A new income-restricted housing complex is now open in East Austin. Libertad Austin, developed by Vecino Group, features 198 apartments for tenants earning up to 30%-60% median family income, or MFI, that’s currently $133,800 for a four-person household. Libertad includes 50 permanent supportive housing units for residents exiting homeless- ness. The project received $4.5 million in city anti-displacement funds.

Projects in the pipeline Opportunity Austin managed more than 200 local projects in 2025.

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General manufacturing Clean tech Biotech/life sciences Automotive Software/IT Aerospace/defense:

22

75

22

27

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SOURCE: OPPORTUNITY AUSTINCOMMUNITY IMPACT

At least šve data centers have opened or announced intentions to open in the Austin metro area in the last few years, tapping into land avail- ability and a deregulated energy market outside of Austin’s city limits. Did you know? In 2025, most businesses seeking to locate in the Austin area were from international sources led by Taiwan, Korea, India, Australia and the United Kingdom. Most domestic relocation interest comes from California.

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Interim height limit set for new buildings downtown Temporary building regulations for downtown high-rises are now in place in response to a new state law meant to spur housing development. The big picture that’s been used to build dozens of downtown towers.

Median building height increase New development around downtown Austin gradually grew taller over the past decade-plus.

+157.14%

200ft 400ft 600ft 800ft 0

This fall’s local update caps new construction in much of Austin’s core at 350 feet, unless projects provide streetscape improvements and aŒordable housing funds. The change is expected to be short-lived with wider revisions to downtown development policies coming next year.

Under this year’s Senate Bill 840, mixed-use and multifamily projects are now allowed in places previously reserved for commercial uses only. It also aŒects local development programs, like one

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SOURCE: CITY OF AUSTINCOMMUNITY IMPACT

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