Denton residents support moratorium as city weighs future data center development
Denton residents overwhelmingly supported a proposed temporary moratorium on new data center development during a public hearing, citing concerns about strain on city resources and the electric transmission system. The city is considering the pause while staff examine the impacts and address potential grid issues, with a second hearing scheduled for October 27. This local action coincides with Texas Governor Greg Abbott's directive to state agencies to halt data center permits and regulatory approvals.
Denton residents voiced strong support for a proposed temporary moratorium on new data center development during the first of two public hearings held by the Denton City Council. All 20 speakers advocated for the moratorium, with some even calling for a permanent ban, citing concerns about potential strain on city resources and the local electric grid.
Mayor Pro Tem Nick Stevens noted the clear public sentiment, while Mayor Chris Watts acknowledged the residents' message. City staff have warned that Denton Municipal Electric's transmission system is operating near capacity and have proposed $300 million in projects, awaiting a response from the Electric Reliability Council of Texas (ERCOT).
The city recognizes the financial benefits of existing data centers, which have generated over $3.5 million in taxes and nearly $9 million in electric return-on-investment. However, residents like Seth Fuller questioned whether monetary gain alone justified the resource expenditure.
This local consideration aligns with broader state actions, as Texas Governor Greg Abbott recently directed the Texas Commission on Environmental Quality to halt data center permit issuance and instructed state agencies to pause regulatory approvals pending an industry audit by ERCOT. The Denton City Council's second public hearing is set for October 27, with a final decision potentially in early December.