Denton moves toward data center moratorium; City Council weighs stricter development rules
The Denton City Council voted to pursue a two-track approach to regulating data centers, advancing both a temporary moratorium and permanent development code changes for public input. This decision was influenced by community concerns about electricity capacity and water usage. Public hearings for both proposals are scheduled to begin in September.
The Denton City Council voted to implement a two-pronged strategy for regulating data centers within the city. The council will pursue both a temporary moratorium on new data center development and amendments to the existing development code to establish stricter permanent regulations. Public hearings for these proposals are scheduled to begin in September.
The decision was prompted by significant community input and concerns raised by Denton Municipal Electric (DME) regarding the city's electric transmission system, which is reportedly nearing capacity. DME General Manager Antonio Puente indicated that projects exceeding 75 megawatts are likely beyond current capacity, despite no new data center projects currently being in the queue.
The proposed 90-day moratorium, which would require a supermajority council vote, could be extended up to 180 days, potentially lasting until May 31, 2027. Simultaneously, the development code amendments would introduce limitations such as zoning restrictions, specific-use permit requirements, and mandates for water-efficient cooling systems like closed-loop or free-air systems. Council members George Ferrie, Mayor Pro Tem Nick Stevens, and Mayor Chris Watts supported this dual approach, emphasizing the importance of public opinion. However, council members Suzi Rumohr, Joe Holland, and Jill Jester voted against the moratorium, citing its cumbersome process, the state's newly announced data center audit, and the potential for quicker implementation of development code amendments.
The article highlights that Denton currently hosts two data centers: Core Scientific's AI data center, with capacity up to 391 MW, and QumulusAI, a modular data center contracted for up to 20 MW. Data centers have generated over $3.1 million in property taxes for Denton, Denton ISD, and Denton County, along with significant franchise and lease revenues for the city. Governor Greg Abbott's office has also noted an 'unprecedented load growth' on the Texas electric grid, with data centers accounting for approximately 90% of new power requests.