Chandler Approves Data Center Ban
Chandler, Texas, has unanimously approved an ordinance banning new data centers and preventing the expansion of existing ones within city limits. The city can enforce the ban through fines and permit denials, classifying violations as a misdemeanor. This local action occurs amidst a broader state debate on rapid AI data center growth and a statewide pause on new projects for grid audits.
Chandler, Texas, has enacted a comprehensive ordinance that prohibits the establishment of new data centers and restricts the expansion of existing facilities within city limits. The Chandler City Council unanimously approved the measure, which allows the city to enforce the ban through fines, permit denials, and other legal actions, with violations classified as a misdemeanor carrying potential daily penalties of up to $2,000.
According to Council Member Bob Valliere, the ordinance specifically disallows data centers as permitted, special, conditional, accessory, or temporary uses. This local legislative action follows a statewide trend in Texas, where the rapid growth of AI data centers has spurred debates over their impact.
Texas Governor Greg Abbott previously called for a pause on all new data center projects across the state. These projects are now mandated to undergo an audit by the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) before they can connect to the state's power grid, indicating broader concerns about energy infrastructure and data center development.