Some Dallas Officials Want More Guardrails Around New Technologies

Dallas City Council members are advocating for increased oversight of new technologies, specifically proposing a temporary moratorium on permits for new hyperscale data centers. This initiative, spearheaded by Council Members Chad West, Jaime Resendez, Laura Cadena, Kathy Stewart, and Paul Ridley, aims to address growing concerns among residents and officials regarding the environmental impacts of large data facilities. The city's current development code does not have a specific designation for data centers, classifying them generally as "communications exchange facilities" which are permitted by right in many zoning districts.

The moratorium proposal comes amidst a national data center boom and local pushback over potential strain on water and energy resources, as well as proximity to residential areas. While Dallas proper currently houses smaller enterprise and colocation centers, with a collective valuation of $1.47 billion, there are no existing hyperscale data centers within city limits. Hyperscale facilities are significantly larger, requiring over 100 megawatts of power and consuming 5 million to 50 million gallons of water annually.

The proposed moratorium would allow City Hall time to modernize its development code, which was previously requested by the council members in August to create a dedicated data center land use. Concerns include noise, heat, water consumption, and electricity demand, despite city records showing minimal noise complaints from existing, smaller facilities. A public hearing for the moratorium request is mandated within 30 days of its receipt on September 23. This discussion also occurs as the city grapples with the use of AI-powered cameras for code enforcement and Flock cameras for public safety, which have also drawn scrutiny over privacy and disproportionate impact on low-income neighborhoods.