DALLAS — A Dallas City Council member is pushing for a review of where data centers can operate and how the city should regulate them as the industry expands across Texas.
District 1 Council Member Chad West recently organized a public hearing to examine data center development in Dallas. He said city zoning rules have not kept pace with the rapid growth of the industry and residents should have a voice in deciding where the facilities are built.
“This whole industry has blown up so quickly that the zoning and the planning for this type of use has not been able to keep up with it,” West said during an appearance on Inside Texas Politics.
West said data centers are permitted in certain Dallas zoning categories, including large portions of commercial areas. He also said the city already has several data centers that he was not aware of.
West said the city’s planning commission should examine appropriate locations for data centers and establish standards for their development and operation.
Critics have raised concerns about the facilities’ electricity and water consumption, noise and proximity to residential neighborhoods. Supporters say data centers support the digital economy and provide infrastructure needed for artificial intelligence.
McKinsey & Company estimates global spending on data centers could reach $7 trillion by 2030.
West said Dallas could also examine whether the city can generate additional revenue from the industry as it addresses a budget shortfall.
“It’s quite possible,” West said when asked about taxing data centers. “Where we can make that up with an industry that’s making a ton of money, why would we not try to do that?”
The council is also preparing a $443 million bond proposal for Dallas voters to consider in November. The package would fund a new police academy and other public safety facilities and supplement the $50 million bond voters approved in 2024.
West said the additional funding would help complete the police academy, training facility and shooting range as the city seeks to compete nationally for police officers.
