Lewisville sets ‘proactive’ limits on AI data centers before they arrive

Lewisville sets ‘proactive’ limits on AI data centers before they arrive

News ClipDenton Record-Chronicle·Lewisville, Denton County, TX·6/24/2026

The Lewisville City Council has unanimously passed a new ordinance requiring special-use permits for AI data centers and prohibiting their construction in residential areas. The proactive legislation aims to give residents formal opportunities for public input and ensures thorough assessment of proposals regarding resource consumption and environmental impact. This move is a response to increasing data center development across Texas and aligns with concerns expressed by residents and other cities.

zoningoppositionenvironmentalgovernmentelectricitywatermoratorium
Gov: Lewisville City Council, Lewisville Planning and Zoning Commission, Lewisville City Manager Claire Powell, Lewisville City Planning Manager Vashil Fernandez, San Marcos City Council, Governor Greg Abbott

Lewisville, Texas, has enacted a new ordinance aimed at proactively regulating the development of artificial intelligence data centers within its city limits. Passed unanimously by the Lewisville City Council on June 15, the legislation mandates special-use permits for all new AI data center constructions and strictly prohibits their placement in residential areas, limiting them to light industrial, warehouse, and heavy industrial districts. This action was taken despite the city not yet receiving any inquiries from data center developers, reflecting a desire to establish controls before a potential influx, as noted by City Planning Manager Vashil Fernandez.

The ordinance emphasizes community involvement, guaranteeing residents two formal opportunities to provide feedback through public hearings before both the city's Planning and Zoning Commission and the City Council. City Manager Claire Powell stated that while Lewisville welcomes responsible growth, residents' interests come first, acknowledging the potential strain data centers can place on community resources like water and electricity. Permit evaluations will specifically assess compatibility with surrounding uses, infrastructure capacity, noise levels, and environmental impact.

This move by Lewisville follows a broader trend in Texas, where public concern over data center growth, particularly regarding energy and water usage, is rising. Neighboring Denton is reportedly considering a temporary moratorium on data centers, while San Marcos City Council, on June 16, narrowly approved a complete ban on data centers within its jurisdiction. Furthermore, Texas Governor Greg Abbott recently issued regulatory recommendations for statewide data center construction and usage, highlighting the increasing governmental focus on this industry.