Denton, Texas, is moving closer to putting the brakes on new data centers as city officials weigh how much strain the facilities could put on the local power system.
The debate reflects a broader clash playing out across the state, where fast-rising, AI-driven energy demand is colliding with concerns about grid reliability, water use, and how much control local communities should have over major industrial projects.
What happened?
By a 4-3 vote, the Denton City Council told staff to move forward on two fronts: Consider pausing new data center projects, and draft tougher rules for them.
Denton is joining other Texas cities, including Lewisville, Irving, and San Marcos, in taking steps to curb or more tightly regulate data center development, KERA News reported.
If council members decide to impose a 90-day moratorium, they would need a supermajority vote, and an extension could keep it in effect until May 31.
The council is expected to pick a date for the first public hearing at its Aug. 18 meeting; that hearing is tentatively scheduled for Sept. 22, with a second Oct. 27 and possibly final adoption Dec. 2, the outlet stated.
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Separately, city leaders are weighing development code revisions that would require specific-use permits, narrow where data centers can be built, and mandate closed-loop or free-air cooling systems.
"I think taking that pause is doing right by the 160-something emails I got from the community saying we want a moratorium," council member George Ferrie said, calling the two-track strategy "avenues of protection," per KERA News.
Why does it matter?
Denton's infrastructure may not be able to handle another wave of massive electricity demand.
Denton Municipal Electric General Manager Antonio Puente said the city likely does not have the capacity to serve projects above 75 megawatts.
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Charlie Rosendahl, Denton's development services director, said studies by DME showed the transmission system was "already running at or near our capacity," KERA News reported.
Two data centers are already in Denton: Core Scientific's AI site, which is nearing a 391-megawatt buildout, and QumulusAI, contracted for as much as 20 megawatts.
While city staff said data centers have generated millions of dollars in tax, lease, and franchise fee revenue, the facilities can also heavily strain electric systems and, depending on the cooling method, use massive amounts of water.
The local fight comes as Texas reviews the industry more broadly. In announcing a statewide audit, Gov. Greg Abbott said the Electric Reliability Council of Texas was considering "approximately over 474 gigawatts of requests to the Texas grid," with about 90% of new power requests tied to data centers, according to KERA News.
What's being done?
Mayor Pro Tem Nick Stevens and Mayor Chris Watts said advancing a moratorium at the same time as code changes would give the public several opportunities to weigh in. Hearings on the code amendments are scheduled for Sept. 23 and Oct. 13, with a possible effective date of Oct. 27, the outlet noted.
The proposed changes would give the council more oversight. Requiring a specific-use permit would allow individual review of data centers, while stricter zoning rules could reduce the areas where they are permitted. Staff also said the city could require cooling systems that limit water usage.
"This temporary moratorium is not just so that you can sit around for six months and do nothing," Stevens said. "It is so that you can have action while doing it. … The community, I think, has been very clear on this, and I'm going to take their cue."
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