Proposal for data center in Sherman pulled

Proposal for data center in Sherman pulled

News ClipKXII·Sherman, Grayson County, TX·5/2/2026

A developer has withdrawn a proposal for a data center in Sherman, Texas, after facing significant community opposition and the city expressing uncertainty about existing regulations. The city now plans to develop new zoning and ordinances to prepare for future data center interest, including assessing impacts like water usage.

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Gov: Sherman City, Sherman City Council
A developer has withdrawn a proposal for a data center in Sherman, Texas, which was to be part of a larger residential and commercial development near Sherman High School. The decision came after significant community pushback and the city's acknowledgment of being unprepared for such a project. Sherman Mayor Shawn Teamman stated that the city had no existing regulations specifically for data centers, leading to uncertainty about how to protect residents and manage potential impacts. The developer, after meeting with the city and observing the community's reaction, concluded that it was not the right time or place for the data center. With the data center component removed, the city council is expected to vote on updated plans for just the houses and businesses. Mayor Teamman indicated that the city views this as a learning experience and plans to explore the impact of future data centers on local infrastructure, including water usage, and to establish a group to develop appropriate ordinances and regulatory protections for its citizens.