Decatur begins process to establish data center overlay district at business park

Decatur begins process to establish data center overlay district at business park

News ClipWise County Messenger·Decatur, Wise County, TX·9/29/2026

Decatur, Texas, is developing a Data Center Overlay District for its Eagles Landing Business Park to establish specific zoning requirements for future data center projects. This proactive measure aims to conserve resources and mitigate negative impacts by setting conditions for water, wastewater, and electrical demands. The proposed ordinance is currently in draft form and will proceed through the Planning and Zoning Commission before potential adoption by the City Council later this year.

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Gov: Decatur City Council, Decatur Economic Development Corp., City of Decatur, Planning and Zoning Commission, Public Utility Commission of Texas, ERCOT, Wise County Commissioners, Texas Commission on Environmental Quality, Texas Water Development Board, Gov. Greg Abbott

The City of Decatur, Texas, is proactively establishing a Data Center Overlay District for its 529-acre Eagles Landing Business Park. This initiative aims to set specific zoning requirements for future data center developments to ensure resource conservation and mitigate potential negative impacts on the surrounding area. A preliminary draft of the ordinance was presented to the Decatur City Council, outlining new development standards and conditions for permitting data centers.

Key focuses of the proposed ordinance include strict regulations on water, wastewater, and electrical demands. Specifically, it would mandate closed-loop, air-cooled, or recycled water systems, effectively prohibiting water-intensive evaporative cooling. Developers would be required to submit water loading studies, fund any necessary infrastructure improvements, and enter into water usage agreements with dedicated meters. Wastewater requirements would address discharge amounts and federal pretreatment standards. For electricity, developers would need to secure grid interconnection approval from the Public Utility Commission of Texas and ERCOT, and potentially provide a utility capacity analysis.

Beyond utilities, the ordinance also proposes minimum lot sizes, setbacks, parking, lighting, screening requirements, and separation distances from sensitive locations like schools and residential areas. Noise studies and mitigation measures would also be required. City Manager Nate Mara confirmed that no data center proposals have been received yet, emphasizing the proactive nature of these regulations.

Decatur city leaders, including council member Melinda Reeves and Mayor Eddie Allen, expressed support for this forward-thinking approach, noting its importance in maintaining local control over development, especially in light of potential state-level regulations. Council member Mike McQuiston highlighted the district's flexibility to adapt to new information. The ordinance is scheduled for discussion by the Planning and Zoning Commission in October, a public hearing in November, and a potential City Council hearing in December. The article also notes Wise County's earlier resolution calling for state lawmakers to grant counties more regulatory power over data centers, and recent actions by Gov. Greg Abbott to halt state permit approvals for data centers until ERCOT completes an audit, and to eliminate financial incentives.