How DFW could become the center of America's largest data center market
Data center development is rapidly expanding in the Dallas-Fort Worth area, particularly in Lancaster, Red Oak and Wilmer, where dozens of facilities are operating, under construction or planned. Residents near Red Oak oppose additional projects because of concerns about noise, traffic, power infrastructure and property values, while local officials cite tax revenue and public benefits. Gov. Greg Abbott has paused state permits for data centers pending an audit of projects seeking grid connections.
NBC 5 Investigates mapped data center projects across the Dallas-Fort Worth area and found substantial planned growth concentrated south of Dallas in Red Oak, Lancaster and Wilmer. Analysts cited the region’s available power, fiber connectivity, land and established market as drivers of the expansion, with Dallas potentially becoming the nation’s largest data center market. Skybox is developing a 100-acre campus in Lancaster, while Compass Data Centers is planning a facility near Red Oak resident Chris Villegas’ home.
Some Red Oak residents, including Villegas and Lacey Hammel, have organized against additional facilities and raised concerns about construction traffic, noise, electric lines and property values. Red Oak Mayor Mark Stanfill said the tax revenue from data centers can help fund roads, parks and lower taxes. Separately, Texas Gov. Greg Abbott halted state permits for data centers while regulators audit projects seeking to connect to the electric grid, and the Texas Legislature is expected to consider new data center regulations.