Denton TX Data Center Moratorium Public Hearing 2026

Denton, Texas residents voiced unanimous support for a proposed 90-day moratorium on new data center applications during a public hearing, citing fears of strain on city resources and the electricity grid. All 20 speakers at the hearing supported the temporary halt, which would not impact two current projects by Core Scientific and Qumulus AI already underway in the north Texas city. The proposed moratorium could be extended for an additional 90 days, with the City Council expected to vote in December.

Concerns expressed by residents align with warnings from Denton Municipal Electric, which has indicated its transmission grid is operating near capacity. The utility has proposed significant investments, approximately $300 million, in transmission line projects to manage future load increases, pending approval from the Electric Reliability Council of Texas (ERCOT). Despite these concerns, city leaders acknowledge that existing data centers have provided substantial financial benefits, generating over $3.5 million in tax revenues and nearly $9 million in electric return-on-investment and franchise fees.

Mayor Pro Tem Nick Stevens noted the strong public support for the moratorium. Beyond the immediate pause, the Denton City Council has also discussed potential amendments to development codes, including new Specific Use Permit requirements, narrower zoning districts, and updated cooling standards. This local action in Denton follows a broader statewide push by Governor Greg Abbott, who recently ordered the Texas Commission on Environmental Quality to freeze environmental permit approvals for data center projects across the state until ERCOT and state water regulators complete comprehensive audits. Data centers currently account for approximately 90% of ERCOT's new grid connection requests, amounting to over 474 gigawatts statewide.