Abbott pauses Texas data center permits as Red Oak residents organize

Governor Greg Abbott canceled statewide permits for data centers until regulators finish auditing every large-scale project seeking access to the state grid. The pause applies to all proposals that have not yet cleared the regulatory review process.

This regulatory shift lands in North Texas, where the density of computing infrastructure has grown rapidly. Data from Cleanview and Data Center Map shows nine operational facilities in Red Oak, a city located 20 minutes south of Dallas between Interstate 35 and Interstate 45. An additional 14 projects are currently in the planning stages in that specific municipality.

The corridor stretches through Lancaster and Wilmer, areas that residents call the Data Center Corridor. In Lancaster, three facilities are under construction with eight more planned. In Wilmer, one center is already running, and 11 are in the planning phase. Families in Red Oak formed the group No More Data Centers to oppose the proximity of these industrial sites to their homes.

John McWilliams, an analyst at Cushman & Wakefield, noted that the market success for existing operators makes the region more attractive for new entrants. His firm published a study ranking Dallas first globally for data center development. The report cited available land, electric supply, and ongoing construction projects as primary factors. McWilliams projects the number of facilities will double within three to five years.

Dr. Krystel Castillo of the University of Texas at San Antonio’s Center for Energy said the rapid growth presents a challenge for the grid. Expanding the network requires years of planning and heavy investment. She stated that the process requires participation from the government, data center operators, and society to address community concerns.

Haynes Strader, head of development for Dallas-based Skybox, countered that there is substantial electrical connection capacity in the south Dallas area. His company is currently building a large facility in Dallas and aims to construct in industrial zones rather than near residential areas. Strader also highlighted that these centers provide millions in tax contributions to the city.

The state will wait for the regulatory audits to conclude before reinstating the permit process. No new state-level approvals will be issued during this review period.