City of Dallas could be next in Texas to regulate data center land use

City of Dallas could be next in Texas to regulate data center land use

News ClipKERA News·Dallas, Dallas County, TX·8/12/2026

Five Dallas City Council members have requested a public hearing and vote to amend the city's development code regarding data centers, aiming for more oversight. Currently, data centers are allowed by right as a utility sub-use in many non-residential areas. This move comes as other Texas cities, including Fort Worth, consider or enact moratoriums on data center construction.

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Gov: Dallas City Council, Texas Gov. Greg Abbott, Public Utility Commission of Texas, Electric Reliability Council of Texas, Fort Worth City Council, Fort Worth Mayor Mattie Parker

Five Dallas City Council members, including Chad West, Paul Ridley, Zarin Gracey, Gay Donnell Willis, and Laura Cadena, have formally requested a public hearing to consider amending the city's development code concerning data centers. The memo, issued on a Tuesday, seeks to either modify provisions for communications exchange facilities or create a new "data center" land use with tailored regulations.

Currently, Dallas categorizes data centers as a local utility sub-use within communications exchange facilities, permitting them by right in many non-residential and mixed-use zoning districts with minimal oversight. Council Member Chad West expressed hope that these amendments would give Dallas residents and the council more influence over the location and construction of data centers.

This initiative in Dallas reflects a broader trend across Texas municipalities grappling with data center regulation. The Fort Worth City Council recently approved the initial steps towards a 90-day moratorium on data center construction, intending to evaluate development regulations and their environmental and quality-of-life impacts. Additionally, Texas Governor Greg Abbott announced a statewide moratorium in August, mandating audits by the Public Utility Commission of Texas and the Electric Reliability Council of Texas before any new data center projects can connect to the state's electric grid, citing concerns over grid and water system impacts.