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North Texas Community Resource

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.

Understanding Data Center Development

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.

Start With the Basics

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.

1

Computing Equipment

Servers process and store the enormous amounts of information used by websites, applications, cloud computing and artificial intelligence systems.

2

Electrical Infrastructure

Data centers require reliable electrical service along with transformers, substations, backup generators and other systems designed to maintain continuous operation.

3

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.

North Texas Development

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
Looking at Both Sides

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.
Power & Infrastructure

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.

Worth knowing: Texas grid operator ERCOT has requested information from large data center developers regarding grid dependency, on-site generation, water, cooling, noise, lighting, traffic and public financial assistance.

Source: ERCOT — Data Center Impact Request for Information
Water & Cooling

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?
Neighborhood Impact

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.

Evaluate the Project

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?
Coming to North Texas

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
Growth in North Texas

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.

Known Facilities & Announced Plans

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.

~150–410
Operating data centers in Texas, depending on how facilities are counted
380+
Planned or proposed data center projects statewide
~421 GW
Data center power requests in ERCOT’s large-load queue (June 2026)
~85.5 GW
ERCOT’s all-time peak electricity demand, for comparison

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.

Operating Under construction Proposed / approved Paused / under review
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
Google 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.
Sources: Cleanview Texas data center tracker • North Texas Market Insider DFW map • KERA News data center map • POWER Magazine • Utility Dive • NBC DFW (Flexential) • Royse City Herald-Banner (GIGA) • DCD (Compass Red Oak) • Green Source DFW (Fort Worth) • Wylie News • Epoch AI (Stargate sites) • KSAT (Google) • ABC 7 Amarillo (Fermi)

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.
Data Center FAQ

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.

Our Approach

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.

Useful primary sources may include:

ERCOT • Public Utility Commission of Texas • Texas Water Development Board • Texas Comptroller • City and county records • Planning and zoning agendas • Development filings • Utility records