Keller City Council approves plan to fight Westlake data center

News Clip1:56WFAA·Westlake, Tarrant County, TX·8/19/2026

The Keller City Council has voted to take legal action against a proposed Powerhouse data center in Westlake, Texas. This follows a Tarrant County judge granting a temporary restraining order that blocked Westlake City Council from voting on the project. The dispute, which highlights environmental concerns and Westlake's economic development rights, will likely be decided in court.

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Gov: Texas House Committee, Governor Greg Abbott, Texas State Regulators, Keller City Council, Westlake City Council, Tarrant County

The Keller City Council has unanimously authorized special counsel to take legal action against a proposed 1.1 million square foot data center by Powerhouse in neighboring Westlake, Texas. This decision follows a temporary restraining order granted by a Tarrant County judge to a Keller homeowners association, which blocked the Westlake City Council from voting on the project.

The proposed data center, located on Highway 377, is approximately 3,000 feet from Westlake homes but only 500 feet from Keller residences, raising environmental concerns. The ongoing debate pits the town of Westlake's right to economic development against Keller's concerns about whether applicable laws have been followed.

The local dispute unfolds amidst a broader statewide initiative where Governor Greg Abbott has ordered state regulators to audit all data centers seeking connection to Texas's electric grid, with non-compliant projects facing denial of power. The mayors of both Keller and Westlake have expressed their respective positions, with the Westlake mayor acknowledging the difficult situation while asserting the town's right to economic development within its borders, and Keller officials expressing serious concerns over legal compliance.

The future of the Powerhouse data center project now rests with the courts.