Chandler bans data centers in city limits

Chandler bans data centers in city limits

News ClipKETK.com·Chandler, Henderson County, TX·8/12/2026

The Chandler City Council unanimously passed an ordinance banning all new data centers within city limits and prohibiting the expansion of existing ones. This local action follows a statewide pause on new data center projects by Governor Abbott due to concerns about grid connectivity. Violations of the ordinance can result in significant daily fines.

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Gov: Chandler City Council, Public Utility Commission of Texas, Electric Reliability Council of Texas, Texas Governor Greg Abbott

The Chandler City Council unanimously approved the Chandler Data Center Ordinance Proposal, effectively banning new data centers within city limits and prohibiting the expansion of any existing facilities. The ordinance prevents data centers from being considered a permitted, special, conditional, accessory, or temporary use within city zoning districts and corporate city limits.

Under the new measure, no building permits, development permits, site plan approvals, or other authorizations will be issued for data centers as defined by the ordinance. Violations are classified as a misdemeanor, subject to penalties including maximum fines of up to $2,000 per day.

This local ban follows Texas Governor Greg Abbott's statewide pause on new data center projects, initiated to allow the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to audit all current data center projects connecting to the state's power grid.