Data centers bring opportunity, concerns to North Texas
Local governments across North Texas are weighing the economic benefits of data centers against concerns over water, electricity, and infrastructure costs. A survey by the North Central Texas Council of Governments found that most communities require significant upgrades to accommodate new facilities and are still developing clear policies for data center proposals. Rather than outright opposition, respondents expressed a strong desire for mandatory sustainability requirements and better planning tools.
A survey by the North Central Texas Council of Governments (NCTCOG) reveals that local governments in the North Texas region are struggling to balance the economic opportunities of data center development with significant concerns over local water and electricity supplies, as well as the cost of infrastructure upgrades. The survey, which included responses from 31 cities and counties, found that 78% of respondents believe their current infrastructure cannot handle new data center development without major upgrades. Water supply was the top concern for 96% of respondents, followed by electric grid reliability at 81%.
Many communities also reported a lack of clear policies for evaluating data center proposals, with 72% indicating they need to develop or improve their guidelines. This policy gap comes as the Dallas market was recently ranked the world's top primary data center market, and Texas boasts 26 gigawatts of existing or under-construction data center capacity. While some economic benefits like tax revenue were acknowledged, only 22% of respondents agreed that data centers produce meaningful long-term tax revenue, and 60% felt the drawbacks outweighed the benefits.
However, communities are not aiming for an outright ban on development. Instead, 96% of respondents supported mandatory sustainability requirements for data center approvals, including measures for renewable energy and water reuse and efficiency. Development agreements and impact fees were also identified as effective tools for managing growth. Susan Alvarez, NCTCOG director of Environment and Development, stated that the survey highlights a call for "clear standards, better planning and the tools communities need to make informed decisions" rather than a rejection of development. NCTCOG plans to use these findings to create educational resources for its member governments.