Black Mountain's Fort Worth data center: tax revenue, ERCOT & political headwinds
Black Mountain is pursuing a $10 billion data center project in Fort Worth, facing community opposition and zoning challenges. The project includes plans for an electricity substation and natural gas turbines, stirring debate over economic benefits, grid strain, and political contributions, with a key City Council vote pending. The broader implications of data center growth on the state's energy grid are also being discussed by the Texas Legislature.
Fort Worth-based energy consortium Black Mountain is advancing a $10 billion data center project on the city's southeast side, a development that serves as a test case for balancing digital infrastructure investment against community resistance and energy grid concerns in Texas. Black Mountain CEO Rhett Bennett projects the data center will generate $30 million annually in tax revenue for Fort Worth and Tarrant County, along with hundreds of high-wage jobs. However, local property owner Sue Weston disputes the economic value, arguing the site is better suited for residential development due to the data center's limited permanent job creation.
The project's zoning progress has been mixed. Black Mountain successfully obtained rezoning for 431 acres, and the Fort Worth Zoning Commission unanimously recommended approval of the site plan amendment with modifications. Despite this, the Fort Worth City Council tabled the final site plan vote, rescheduling it for June 23, while two additional rezoning requests remain pending.
Adding to the complexity, Black Mountain's related entity, Fort Worth Power Core LLC, secured Texas Commission on Environmental Quality (TCEQ) approval to operate natural gas turbines as backup power for a new data center on 2,000 acres in Parker County near Weatherford. Weatherford officials publicly stated the city would not host the project, with City Manager James Hotopp expressing concern over the unannounced TCEQ application.
The broader implications of data center growth on the state's electricity grid are now a focus for the Texas Legislature, with the House State Affairs Committee initiating hearings on the issue. Public Utilities Commission of Texas Chairman Thomas Gleeson and ERCOT President and CEO Pablo Vegas indicated that companies are committed to preventing residential ratepayers from bearing the costs. Bennett's substantial political donations to Fort Worth city officials and Governor Greg Abbott have drawn scrutiny, although officials deny any influence on their votes or decisions. Residents continue to actively oppose the project, citing concerns about environmental impacts and transparency.