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Dallas TX1 data center electrical room is pictured at the NTT Data center campus on March 4 in Garland.<\/p>\n
Tom Fox\/Staff Photographer<\/p>\n
Dallas zoning regulations for data centers lack rules tailored to their growing demand for power and infrastructure. That could soon change, as the city is in the midst of\u00a0a zoning reform project<\/a>.\u00a0<\/p>\n As demand for data centers and supporting infrastructure surges in Dallas-Fort Worth<\/a>, the absence of a coordinated approach raises questions about who bears the cost of this growth. And whether Dallas is prepared for the next wave of expansion, said Ian Seamans, a City Hall advocate with the nonprofit Environment Texas.<\/a>\u00a0<\/p>\n Article continues below this ad<\/p>\n In Dallas, there are a few dozen operating data centers, most embedded in downtown buildings, telecom hubs and office corridors. The majority are classified as carrier hotels \u2014 buildings that house networks and cloud services in dense urban areas.\u00a0<\/p>\n These facilities tend to be smaller than the massive wholesale and hyperscale campuses emerging in northern suburbs like Plano, Richardson and Frisco, and in areas south of Dallas like Red Oak, where land is more available.\u00a0<\/p>\n As Dallas works to update its zoning code, data centers have become a focal point.\u00a0<\/p>\n Make Dallas News a preferred source so your search results prioritize writing by actual people, not AI.<\/p>\n <\/p>\n Add Preferred Source<\/p>\n <\/a><\/p>\n Environmental advocates see an opportunity to strengthen rules addressing the heavy demands these facilities place on water, power and land<\/a>. Commercial real estate experts caution against overregulation, arguing the city can balance resource protection with continued investment in a fast-growing industry.\u00a0<\/p>\n Article continues below this ad<\/p>\n \u201cLocal jurisdictions can create policies that will help to develop real assessment of how much burden will go to our water and electricity system,\u201d said Seamans. \u201cAnd to know the amount of jobs that a development of this type will bring to see if the trade-off is worth it.\u201d\u00a0\u00a0<\/p>\n<\/p>\n Dallas\u2019 role in the D-FW data center boom\u00a0<\/p>\n Dallas-Fort Worth was named the No. 1 primary data center market in the world,<\/a> according to a new report released<\/a> this month by real estate firm Cushman & Wakefield.<\/p>\n Article continues below this ad<\/p>\n Much of the region\u2019s early growth began in downtown Dallas, where existing telecommunications infrastructure made it easier to retrofit office buildings for data center use.\u00a0<\/p>\n Raul Saavedra, head of data center advisory for the Americas at Colliers,<\/a> said even as growth shifts to the suburbs, Dallas remains critical.\u00a0<\/p>\n Related:<\/strong> Dallas ranks No. 1 primary data center market globally, surpassing Atlanta, Virginia<\/a><\/p>\n Latency-sensitive workloads \u2014 such as financial services, content delivery and artificial intelligence \u2014 require proximity to dense fiber networks built over decades in downtown Dallas. The city also has the highest concentration of users who rely on that connectivity.\u00a0<\/p>\n Article continues below this ad<\/p>\n \u201cDallas is where low-cost scale meets real network relevance, and very few U.S. markets offer both,\u201d Saavedra said.\u00a0<\/p>\n A new DataBank campus is being constructed in Red Oak, Tuesday, May 12, 2026.<\/p>\n Angela Piazza\/The Dallas Morning News<\/p>\n Lower business costs, relatively low electricity prices and tax exemptions for qualifying data centers<\/a> are also fueling growth in the region, he said.\u00a0<\/p>\n How Dallas classifies data centers\u00a0<\/p>\n The Dallas Development Code classifies data centers as communication exchange facilities,<\/a> defined as centralized locations for equipment that stores and routes voice and data transmissions.\u00a0<\/p>\n Article continues below this ad<\/p>\n These facilities are allowed by right \u2014 without a rezoning hearing \u2014 in most business, industrial and mixed-use areas. In commercial retail districts, they are only permitted in buildings that are 50,000 square feet or smaller. They are also allowed in certain nonresidential planned developments.\u00a0<\/p>\n Projects that require rezoning to accommodate a different type of use must be approved by the City Plan Commission<\/a>. These types of rezoning can include general zoning changes, planned developments or specific use permits. These cases require notification to nearby property owners within 200-500 feet, depending on the proposal.\u00a0<\/p>\n Policy gap\u00a0<\/p>\n When a land use is permitted by right, there is no requirement for public notification \u2014 a gap that new policy could address, said Kathryn Guerra, chair of the Dallas Environmental Commission and director of Public Citizen\u2019s Texas Commission on Environmental Quality watchdog campaign<\/a>.\u00a0<\/p>\n Article continues below this ad<\/p>\n The Dallas Environmental Commission voted in February to develop policy recommendations for the City Council<\/a>. In the coming months, members will hear from experts on water, energy, air quality and community impacts.\u00a0<\/p>\n Related:<\/strong> Dallas releases first extreme heat intervention guidebook ahead of another brutal summer<\/a><\/p>\n \u201cWe want to be really proactive in our approach, instead of being reactive,\u201d said Guerra. \u201cWe are seeing communities that wake up one morning and the land next to them has been graded and there\u2019s really not a lot that can be done to stop it at that point.\u201d\u00a0\u00a0<\/p>\n About a hundred people attend a protest against a proposed fourth data center in city limits before a City Council meeting where they will vote on rezoning land in Red Oak, Monday, May 11, 2026.<\/p>\n Angela Piazza\/The Dallas Morning News<\/p>\n Electricity consumption \u00a0<\/p>\n The city reviews only the portion of a project\u2019s electrical system located on private property.\u00a0<\/p>\n Article continues below this ad<\/p>\n Beyond that, utilities such as Oncor determine whether the grid can handle demand and what upgrades are needed, according to the Dallas Planning and Development Department.\u00a0<\/a><\/p>\n In an email, the department said the city does not apply a specific power-demand threshold that triggers additional review. All projects must meet the same codes and standards.\u00a0<\/p>\n Seamans said stronger policies could help protect residents and the energy demand.<\/a>\u00a0\u00a0<\/p>\n \u201cWe need policies at the local and state level that require renewable energy,\u201d he said. \u201cThat would help prevent additional air pollution, limit water use and reduce the risk of energy shortages.\u201d\u00a0<\/p>\n Article continues below this ad<\/p>\n Water usage\u00a0<\/p>\n Water use is another concern for environmental advocates.\u00a0<\/p>\n The Texas Water Development Board recently estimated that preventing a statewide water crisis over the next half-century could cost $174 billion. Cities like Corpus Christi have already begun restricting water<\/a> use amid shortages.\u00a0<\/p>\n In Dallas, data centers are treated like other large businesses. Water use is metered and billed monthly, with no special limits or regulations.\u00a0<\/p>\n Article continues below this ad<\/p>\n Related:<\/strong> Corpus Christi will likely face emergency water restrictions this fall, staff warns<\/a><\/p>\n The Dallas Water Utilities Department<\/a> said via email it is studying how data centers use water and reviewing best practices nationwide, while coordinating with regional partners to plan for future demand.\u00a0<\/p>\n The Dallas city skyline is seen beyond the Trinity Forest wetlands on March 28, 2026.<\/p>\n Angela Piazza\/Staff photographer<\/p>\n Because projects are evaluated individually, the city does not assess the cumulative impact of multiple data centers in the same area.\u00a0<\/p>\n Article continues below this ad<\/p>\n Air pollution\u00a0<\/p>\n Community advocates also point to air pollution concerns. The Sunrise Movement in Dallas<\/a> is campaigning to halt new data centers in the region, citing the diesel generators used for backup power.\u00a0<\/p>\n Lizeth Mendoza, a co-coordinator with the group, said those generators can produce harmful pollutants that increase health risks for nearby communities.\u00a0<\/p>\n<\/p>\n
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