North Texas Data Centers
Data center development is expanding across North Texas, bringing significant investment while also raising questions about electricity demand, water use, infrastructure, noise and nearby communities.
Explore the potential benefits, common concerns and important questions surrounding data center development — without the politics or advocacy.
What Could Data Centers Mean for North Texas Communities?
Data centers provide the computing infrastructure behind cloud services, artificial intelligence, online applications, financial systems, streaming services and many of the digital tools people use every day.
As more large facilities are proposed throughout Texas, residents, businesses and local governments are considering both their potential economic benefits and questions surrounding electricity, water, infrastructure and surrounding development.
The purpose of this resource is not to promote or oppose data center construction. Our goal is to collect useful information, explain the issues in understandable language and help North Texas residents ask informed questions about projects proposed near their communities.
What Is a Data Center?
A data center is a facility designed to house computer servers, networking equipment, storage systems and the infrastructure necessary to keep those systems operating.
Computing Equipment
Servers process and store the enormous amounts of information used by websites, applications, cloud computing and artificial intelligence systems.
Electrical Infrastructure
Data centers require reliable electrical service along with transformers, substations, backup generators and other systems designed to maintain continuous operation.
Cooling Systems
Computer equipment generates heat, so facilities rely on cooling systems that may use air, water or other technologies depending on the facility design.
Why Are Data Centers Being Built in North Texas?
Developers consider many factors when selecting a location for a data center. North Texas offers access to a major metropolitan area along with extensive electrical, telecommunications and transportation infrastructure.
- Large tracts of developable land
- Access to electrical transmission infrastructure
- Fiber and telecommunications connectivity
- Proximity to the Dallas-Fort Worth region
- Construction and transportation resources
- Local zoning and development conditions
- Utility capacity
- Economic-development considerations
Data Center Benefits and Community Concerns
Individual projects can differ substantially. Rather than assuming every data center will have the same impact, it is useful to examine the specific characteristics of each proposed development.
Potential Community Benefits
-
Private investment
Large facilities may represent substantial investment in land, buildings and equipment. -
Construction activity
Projects can create work for contractors, electricians, engineers and other construction trades. -
Permanent employment
Facilities may employ technical, security, maintenance and operational personnel. -
Local tax base
Depending on valuation and applicable agreements, projects may contribute taxable value to local jurisdictions. -
Infrastructure investment
Development may be accompanied by electrical, telecommunications or roadway improvements.
Common Community Concerns
-
Electricity demand
Large facilities may require substantial amounts of electrical power. -
Water use
Some cooling technologies consume water, while others use different cooling methods. -
Noise
Cooling equipment, transformers and backup generators can produce sound. -
Infrastructure requirements
New substations, transmission equipment, roads or utility infrastructure may be necessary. -
Proximity to homes
Residents may have questions about setbacks, lighting, landscaping and the visual effect of nearby facilities.
How Much Electricity Do Data Centers Use?
Electricity demand can vary widely depending on the size and purpose of a facility. Large data centers can require considerably more electricity than conventional commercial buildings because servers operate continuously and require supporting cooling equipment.
For North Texas communities, useful questions include the proposed facility’s expected electrical demand, whether additional transmission infrastructure will be required and whether the project will incorporate any on-site generation.
Source: ERCOT — Data Center Impact Request for Information
Do Data Centers Use a Lot of Water?
There is no single amount of water used by every data center. Water requirements depend heavily on the cooling technology used by the facility.
Some designs rely more heavily on evaporative or water-assisted cooling, while other facilities may use technologies designed to reduce water consumption.
For a proposed project, residents may want to know:
- How much water is expected to be consumed annually?
- Where will the water come from?
- Will municipal drinking water be used?
- What cooling technology is proposed?
- Will the facility recycle or reuse water?
What About Data Center Noise?
Data centers contain cooling equipment, transformers, generators and other mechanical systems that can produce sound.
The impact experienced at nearby properties can depend on equipment type, facility design, sound barriers, terrain, setbacks and the distance between the facility and neighboring homes.
Cooling Equipment
Fans, chillers and related equipment may operate for extended periods.
Backup Generators
Generators may be periodically tested even when no power outage is occurring.
Electrical Equipment
Transformers and substations can create their own characteristic operating sounds.
Questions to Ask About a Proposed Data Center
Specific questions can be more useful than simply deciding whether data center development is generally good or bad.
Electricity
- How much electricity will the completed facility require?
- Will new substations or transmission lines be needed?
- Will the facility generate any of its own electricity?
- What backup power systems are planned?
Water
- How much water is expected to be consumed?
- What will be the source of that water?
- What type of cooling technology will be used?
- Will municipal drinking water be used for cooling?
Noise & Residential Impact
- How close will the facility be to existing homes?
- What sound levels are expected at the property boundary?
- How frequently will generators be tested?
- What sound-reduction measures are included in the design?
Economic Impact
- What is the projected private investment?
- How many construction jobs are anticipated?
- How many permanent jobs are expected?
- What tax revenue is projected?
- Are tax incentives or other financial agreements being requested?
Infrastructure
- Will roads need to be improved?
- Will new electrical infrastructure be required?
- Will water or wastewater infrastructure need expansion?
- Who will be responsible for those costs?
North Texas Data Center Development Tracker
Data center development is changing rapidly throughout the region. Lavon Insurance is developing a community resource designed to help residents follow proposed and publicly announced data center projects across North Texas.
Information We Plan to Track
- Community and county
- Project name
- Developer
- Project status
- Approximate acreage
- Building square footage
- Estimated investment
- Projected electrical demand
- Water information
- Construction schedule
- Public meetings
- Source documents
Data Centers Are Part of a Larger Development Conversation
North Texas communities are simultaneously experiencing residential, commercial and industrial growth. Data centers are one part of that larger development picture.
A project that works well in one location may present different considerations somewhere else. Facility size, available infrastructure, surrounding land use and proximity to residential areas can all affect a project’s local impact.
For that reason, reviewing the characteristics of an individual project is often more informative than making assumptions based only on the words data center.
Data Centers in Texas: What Exists and What Is Planned
Below is a summary of publicly reported data centers that are operating, under construction or proposed in North Texas and across the state. Inclusion on this list is not an endorsement of, or objection to, any project.
Project details change often. Capacity, investment and timeline figures are as reported by the cited sources and may differ from final plans. Some proposals are revised, delayed or withdrawn before construction begins.
Counts vary widely between trackers. Cleanview lists 147 operating and 386 planned projects; Google cited 411 Texas data centers in November 2025. A request in the ERCOT queue does not mean a project will be built. Many requests are speculative or duplicative, which is one reason the state ordered an audit in August 2026 (see below).
North Texas: Operating, Under Construction & Proposed
The Dallas-Fort Worth region is one of the largest data center markets in the country. Ellis County has been reported as leading all Texas counties in requested power.
| Project / Operator | Location | Reported Size | Status |
|---|---|---|---|
| GIGA Previously filed as BT Gateway Data Center LLC | CR 2656, unincorporated Hunt County (east of Royse City) | ~20 developed acres of a 30-acre site; about $384M Uses existing distribution lines; no tax abatement requested, according to the developer | Proposed Town hall July 2026; target mid-2027 |
| BlockchAIn Digital Infrastructure AI / GPU hosting site | Collin County | Not disclosed | Under construction Target Q3 2027 |
| Flexential | Near Talty, Kaufman County | 110 acres; 36 MW first phase, up to ~108 MW Closed-loop cooling planned | Proposed Site work early 2027; first customers late 2028 |
| Aligned Data Centers | Plano, Collin County | Not listed | Operating |
| Garland cluster: NTT, Stream (DFW VII), Prime, Digital Realty | Garland, Dallas County | Multiple campuses | Operating Digital Realty expansion under construction |
| Established core: Equinix, QTS, Digital Realty, CyrusOne | Dallas, Irving, Richardson, Carrollton | Multiple campuses | Operating |
| Midlothian and Red Oak, Ellis County | Two campuses | Operating Red Oak opened Nov 2025 | |
| Compass Datacenters | Red Oak, Ellis County | 830-acre campus approved May 2026 Approval drew a 2,200+ signature petition; Compass pledged $15M for an animal shelter | Expanding |
| DataBank | Red Oak, Ellis County | ~480 MW | Under construction |
| Lincoln Property | Midlothian area, Ellis County | ~540 MW | Proposed |
| PowerHouse / Provident | Grand Prairie area | Up to ~1,800 MW campus | Proposed |
| STACK Infrastructure; Skybox PowerCampus | Lancaster area, Dallas County | Skybox: ~300 MW | STACK under construction Skybox proposed |
| Hyperscale facility | Wilmer, Dallas County | Hyperscale | Under construction |
| Meta | Fort Worth (Alliance) | Campus | Operating |
| Black Mountain | Southeast Fort Worth | 450 acres rezoned; about $10B | Proposed |
| Edged Data Centers | Southwest Fort Worth (Veale Ranch area) | 186 acres; about $1B | Stalled Tax-break request paused, April 2026 |
| Core Scientific | Denton | Not listed | Under construction |
| Riot Platforms | Corsicana, Navarro County | ~1,000 MW | Approved |
| Other proposals | Prime (Aledo), South Creek Ranch (Ferris) | Not listed | Proposed |
Not a complete list. Smaller enterprise and colocation facilities across Dallas, Collin, Denton and Tarrant counties are not individually listed.
Major Projects Elsewhere in Texas
Many of the largest projects are being built outside major metros, often paired with on-site or dedicated power generation.
| Project / Operator | Location | Reported Size | Status |
|---|---|---|---|
| Stargate (OpenAI, Oracle, Crusoe) | Abilene, Taylor County | ~1.2 GW | Partly operating 4 of 8 buildings online as of April 2026 |
| Frontier (Vantage Data Centers; Oracle/OpenAI) | Shackelford County | ~1.4–2 GW; about $25B | Under construction First building late 2026 |
| Stargate (SB Energy / SoftBank, OpenAI) | Milam County | ~1.2 GW | Under construction Full build-out targeted 2028 |
| Riot Platforms, Rockdale | Milam County | ~700 MW | Operating |
| Google, three new campuses | Armstrong County (1); Haskell County (2) | $40B through 2027 | Announced November 2025 |
| Meta | El Paso | ~1 GW; investment raised to $10B | Under construction |
| Project Matador (Fermi America) | Carson County, near Amarillo | Up to 11 GW planned (gas, nuclear, solar) | Planned First tenant funding deal ended Dec 2025 |
| Tract | Caldwell County | ~2 GW planned | Planned First 360 MW targeted 2028 |
| Data City, Texas (Energy Abundance Development Corp.) | Near Laredo | Up to 5 GW planned | Planned |
| Stream Data Centers, San Antonio III–VII | Bexar County | ~200–280 MW | Operating |
| Hut 8, King Mountain | Upton County | ~280 MW | Operating |
| Central Texas proposals | Nexus (Hill County); Infrakey (near Waco) | Infrakey ~925 MW; Nexus multi-GW expansion | Proposed |
Recent Developments That May Affect These Plans
- August 2026 · Statewide State audit of data center grid requests. Governor Abbott directed the PUC and ERCOT to audit data center interconnection requests, including ownership, financing, water use and community impact. ERCOT has said new data center interconnections are effectively paused while roughly 300 projects of 75 MW or more are reviewed. The audit is targeted for completion by December 10, 2026.
- August 2026 · Fort Worth Moratorium process started. The Fort Worth City Council voted unanimously to begin the process for a 90-day pause on new data center construction and created a Data Center and Infrastructure Commission. State law requires public hearings and two readings before a moratorium can take effect.
- July 2026 · Hunt County Royse City-area proposal changes hands. GIGA took over the proposed CR 2656 project and held a community town hall. A similar application in Quinlan was withdrawn earlier.
- Spring 2026 · Collin County Cities update zoning rules. Wylie approved a 59.8-acre rezoning in April that included limits on data center use. Princeton staff began evaluating zoning amendments to regulate data centers in June.
Last updated October 2, 2026. Know of a project we missed or a detail that has changed? Let us know and we will review it against public records.
Frequently Asked Questions About Data Centers
Do data centers use a lot of electricity?
Large data centers can have substantial electrical requirements, but power demand varies according to the facility’s size, computing equipment and design. Individual projects should be evaluated using their projected electrical demand.
Do data centers use a lot of water?
It depends on the cooling system. Some facilities use water-intensive cooling methods while others employ technologies that require substantially different amounts of water.
Are data centers noisy?
Cooling equipment, transformers and backup generators can create sound. The effect on surrounding properties depends on facility design, equipment placement, sound mitigation, setbacks and distance.
How many jobs does a data center create?
Employment varies considerably by project. Construction can require a sizable temporary workforce, while the number of permanent employees depends on the facility’s size and operating model.
Do data centers generate property-tax revenue?
Data center property may add taxable value, but the actual fiscal effect depends on valuations, exemptions, incentives, development agreements and the taxing jurisdictions involved.
Can a data center affect nearby property values?
There is no single answer that applies to every location. Property effects may depend on distance, surrounding land uses, visual screening, noise, infrastructure and broader development patterns.
How can I find out whether a data center is proposed near me?
Sources may include city council and planning-and-zoning agendas, county records, development applications, state filings, utility information, ERCOT records and publicly announced development agreements.
Are data centers good or bad for a community?
That depends on the characteristics of the individual project and the priorities of the community evaluating it. Investment, employment and tax revenue can be considered alongside electricity demand, water use, infrastructure requirements, noise and proximity to residential areas.
Information Without Taking Sides
Lavon Insurance Agency serves families and businesses throughout North Texas. We believe useful community information should help people better understand an issue rather than tell them what position they should take.
Our goal with this resource is to collect publicly available information, identify credible sources and explain complicated issues in understandable language.
Figures concerning individual projects can change during planning and construction. Investment amounts, electrical demand, water requirements, employment and project schedules should therefore be verified against the most recent source documents.
ERCOT • Public Utility Commission of Texas • Texas Water Development Board • Texas Comptroller • City and county records • Planning and zoning agendas • Development filings • Utility records