Red Oak approves data center despite heavy opposition from residents

News Clip2:19WFAA·Red Oak, Henderson County, TX·5/12/2026

Red Oak leaders approved the rezoning of 800 acres from agriculture to industrial use for a new Compass Data Centers facility, despite strong community opposition citing noise and environmental concerns. This approval marks the sixth data center project in the city, with council members highlighting potential revenue generation and tax rate benefits. Meanwhile, Henderson County is also considering plans for a new 400-acre data center, as Texas lawmakers review incentives and power grid demands amid a statewide data center boom.

zoningoppositionenvironmentalgovernmentelectricity
Compass Datacenters
Gov: Red Oak City Council, Henderson County, Texas lawmakers
In a late-night vote, leaders in Red Oak, Texas, approved the rezoning of an 800-acre plot of agricultural land to industrial use, clearing the way for a new data center facility by Compass Data Centers. This decision, reached around midnight, allows for the sixth data center project in Red Oak, located along FM 2377 near I-35. The approval came despite significant community opposition, with the council chamber packed with residents speaking against the proposal. Concerns raised by opponents included potential health impacts, noise, and environmental issues. However, the council ultimately voted 4 to 1 to approve both a tax abatement and the zoning item, with council members stating they tailored the proposal to the area and citing the city manager's view that data centers are self-contained and generate revenue, which could help lower the city's tax rate. The WFAA report also highlighted that Henderson County, located an hour and a half southeast of the Dallas-Fort Worth metroplex, is set to consider plans for a more than 400-acre data center. This development is part of a broader "data center boom" across Texas. In response to this surge, Texas lawmakers are reviewing existing tax incentives, the increasing demand on the state's power grid, and community concerns ahead of the next legislative session in January.