Keller Authorizes Legal Action Against Westlake Over Data Center Project
The Keller City Council has unanimously authorized legal action against Westlake regarding a proposed PowerHouse Data Centers project near their shared border. The decision follows a temporary restraining order issued by a Tarrant County judge, halting Westlake's vote on a development agreement for the 1.1 million square foot campus. Keller residents cite environmental and quality-of-life concerns, while Westlake emphasizes its right to economic development and states the site is already zoned for data centers.
The Keller City Council has unanimously voted to pursue legal action against Westlake concerning a proposed 1.1 million square-foot data center campus by PowerHouse Data Centers. The project, located within Westlake's borders along U.S. Highway 377, is situated approximately 500 feet from some Keller backyards, leading to significant opposition from Keller residents and officials.
Tensions escalated after a Tarrant County judge issued a two-week temporary restraining order against Westlake, just an hour before the city was scheduled to vote on a development agreement with PowerHouse. This order was prompted by a petition from two Keller residents and The Lakes at Marshall Ridge Homeowners Association, who claim the project could cause "irreparable harm" to their properties. A hearing for a potential injunction is set for August 26.
Keller officials stated they exhausted diplomatic efforts and believe legal avenues are in the best interest of their residents, questioning Westlake's transparency. Westlake Mayor Kim Greaves defended the city's right to economic development, noting the site is already zoned for a data center. The proposed development agreement included additional requirements for noise, water, electricity, and infrastructure, alongside a $914,000 contribution from PowerHouse for a Westlake pump station.
Separately, Texas Governor Greg Abbott announced that PowerHouse and other data center developers have agreed to comply with new state standards concerning infrastructure costs, power needs, water conservation, and mitigation of impacts like noise and traffic. Additionally, Dallas is considering updating its development code to create a new land-use category for data centers amidst accelerated investment in the D-FW area.