Can Crow Holdings build data center at Market Hall without rezoning or special use permit?
Crow Holdings plans to build a 40-acre data center campus, including the Market Hall property, in Dallas. The key issue is whether the project can proceed "by right" under existing zoning as a communications exchange facility, a classification disputed by some. Meanwhile, the governor has ordered an audit of all data center projects connecting to the state's power grid, and other Texas cities are considering moratoriums.
Developer Crow Holdings is planning a 40-acre data center campus, which includes the Market Hall event venue property, along North Stemmons Freeway and Market Center Boulevard in Dallas. City spokesperson Robyn Gerard indicated that the parcels are likely zoned for data center development "by right" as communications exchange facilities, negating the need for rezoning or a special use permit.
However, attorney and former Dallas City Council member Philip Kingston disagrees, arguing that data centers are primarily computing centers and do not fit the mixed-use zoning's definition of communications exchange facilities, suggesting they should require a special use permit under a "utility other than listed" category. Dallas City Council member Jesse Moreno and City Plan and Zoning Commissioner Joanna Hampton have not commented on the project.
The project faces broader regulatory scrutiny as Gov. Greg Abbott recently directed the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to audit all data center projects seeking to connect to the state's power grid. Additionally, Dallas is undertaking a zoning reform project that could include new data center regulations, and several other Texas municipalities, including Denton, are considering moratoriums on data center developments. Crow Holdings and CleanArc Data Centers are partnering on the project, which is planned for 245 megawatts at full build-out.