Texas cracks down on data centers as cities impose strict new bans

Texas is tightening rules around data center development as local governments respond to growing opposition. Gov. Greg Abbott has now issued statewide recommendations for construction and usage. Meanwhile, cities like Lewisville and San Marcos have already taken steps to restrict where these facilities can operate. San Marcos City Council recently banned data centers entirely within its city limits. In Lewisville, officials passed a law prohibiting such facilities in residential zones. They are now only allowed in light industrial, warehouse, and heavy industrial districts.

Lewisville City Council also unanimously approved a new ordinance. It requires AI data centers to obtain special-use permits before construction. Each proposal will be assessed for compatibility with nearby land uses and community amenities.

Residents in Lewisville have two formal chances to voice concerns before the City Council makes a decision. The city’s abundance of light industrial and warehouse space has made it a prime target for developers. Despite this, a recent poll by the University of Texas/Texas Politics Project found most Texans oppose data centers. The new ordinance in Lewisville adds an extra layer of scrutiny for data center projects. Public input will play a key role in the approval process. Statewide, Gov. Abbott’s recommendations aim to standardise how these facilities are regulated across Texas.