Proposal for data center in Sherman pulled

News Clip1:45KXII 12 | Texoma Turns To Us·Sherman, Grayson County, TX·5/5/2026

A proposal for a data center on a 165-acre plot in Sherman, Texas, was pulled by the developer following significant community concerns and the city's uncertainty regarding zoning regulations for such a project. The Sherman City Council will now proceed with plans for homes and businesses on the site, without the data center.

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Gov: Sherman City Council, Mayor Shawn Tillman
A proposed data center development in Sherman, Texas, on a 165-acre site near a new high school, has been withdrawn by its developer. KXII 12 News reported on the "big update" after community residents voiced significant concerns about the project. Mayor Shawn Tillman stated that the city had never before faced a zone change request specifically for a data center, leading to uncertainty on how to proceed. Recognizing the community's concerns and the city's hesitation, the developer opted to press pause on the data center proposal. As a result, the Sherman City Council is now set to vote on plans for homes and businesses on the property instead, with no data center involved. Mayor Tillman emphasized that this situation serves as a lesson for the city, highlighting the need to plan ahead and ensure appropriate zoning and ordinances are in place to accommodate various types of businesses while also having suitable locations for them.