Denton officials weigh data center moratorium at public hearing

Denton City Council initiated its first of two public hearings concerning a proposed moratorium on new data center development and permitting within city limits. Mayor Chris Watts emphasized the importance of community input during the Sept. 22 meeting, which is part of the legal process required for implementing such a pause.

The proposal to halt new data center construction stems from concerns about the long-term impact on the community, including potential strain on the electric grid and air quality. Conversely, proponents highlighted the financial benefits, such as a reported $3 billion increase in property tax value from existing data center developments.

During the hearing, officials noted that Core Scientific, an existing data center operator in Denton, had previously requested to lease additional public land from Denton Municipal Electric. City attorney Mack Reinwand clarified that a moratorium would not necessarily stop existing projects from building out but would impact new development applications. Core Scientific currently has 391 megawatts of electrical capacity, while Qumulus AI is projected for 20 megawatts by 2028.

Denton's Director of Development Services, Charlie Rosendahl, informed the council that the city's electric transmission system was already near its limits even before the arrival of large data centers. This local discussion aligns with a recent statewide directive from Gov. Greg Abbott, who ordered Texas environmental regulators to stop issuing new permits for data centers exceeding 75 megawatts, pending an ERCOT audit. Denton City Council is set to vote on the 90-day moratorium as early as December 2, following a second public hearing scheduled for October 27.