City proposes new standards on data center development

City proposes new standards on data center development

Published on June 02, 2026

The City of Fort Worth on Tuesday introduced proposed regulations that would establish clear, consistent standards for data center development in Fort Worth. The recommendations are designed to utilize tools under the City's regulatory authority to protect nearby neighborhoods and resources while ensuring the City can responsibly manage growth, maintain oversight, and capture economic benefits.

Staff outlined the recommendations during a City Council work session, covering proposed changes to zoning rules, noise regulations, water utility requirements and economic development incentives.

Data centers - facilities that house the servers, networking equipment and storage systems that power everyday digital activity - have been drawn to Texas in growing numbers due to the state's business-friendly environment, available land, lower energy costs and faster permitting timelines.

Facts about data centers in Fort Worth

There have been data centers operating in Fort Worth for more than two decades. The City currently has four data center developments spanning 10 individual buildings across Council Districts 5 (one development) and 10 (three developments), with a combined footprint of more than 3 million square feet. Individual facilities range in size from 209,000 square feet to a 1.5-million-square-foot campus. The first data center in Fort Worth was built in 2000; the most recent was constructed in 2025.

There is also in-progress development. Within city limits, one additional facility is currently under construction in Council District 7, and four more have been proposed across Council Districts 3, 6, 7 and 8. Two additional data center projects are proposed in Fort Worth's extraterritorial jurisdiction.

Protecting neighborhoods

Data centers currently operate under the same development standards as other industrial uses. The proposed zoning amendments would create data center-specific development standards:

• Data centers would be required to maintain a 250-foot setback between facilities and any residential districts.

• A 50-foot landscape buffer and screening fence would be required along any property line adjacent to residential uses.

• Standby generators could not be located within 300 feet of residential areas and would need to be fully screened.

• For lighting, fixtures within 150 feet of a residential use would be required to produce zero foot-candles on the sides adjacent to homes, with a maximum fixture height of 20 feet.

• Rooftop cooling equipment would need to be placed behind acoustic barriers that are 1.5 times the height of the equipment.

• A continuous row of evergreen trees along the site perimeter would be required where the property adjoins residential.

The proposal also includes new noise regulations. Currently, industrial zoning districts are exempt from maximum sound level requirements. The proposed changes include several new requirements:

1. Within 250 feet of residential a 72-hour pre-development ambient noise study, measured at property line would be required.

1. That ambient noise study would be used to establish the development's Maximum Sound Levels, which the development would not be allowed to exceed 5 dBA above.

1. If the Maximum Sound Levels were exceeded, the City would require mitigation measures at the property owner/operator's expense.

1. Standby generator testing schedules would be restricted to weekdays between 8 a.m. and 5 p.m., with the exception of emergency operations and as regulated Texas Commission on Environmental Quality (TCEQ).

Additionally, the proposed zoning amendments would prohibit cryptocurrency mining operations as a primary use in the city.

Protecting water resources

Water use is one of the most common concerns raised about data center development and is one the proposed policy changes . The City's proposed standards would require all new data centers to use closed-loop cooling systems, which circulate water inside the facility rather than continuously drawing water for cooling operations.

To understand what that requirement means in practice, consider 100 acres of undeveloped land in Fort Worth. If that land were built out as a single-family residential neighborhood, it would consume approximately 2 million gallons of water per month. A data center using an evaporative cooling system - the older, more water-intensive approach - would use roughly 4 to 6 million gallons per month.

A closed-loop data center on that same 100 acres would use approximately 300,000 to 1 million gallons per month, or as little as one-sixth the consumption of a residential development on comparable land, and a fraction of what evaporative cooling would require. Evaporative cooling systems would not be permitted going forward under the proposed standards.

Beyond how water is used inside a facility, the City is also tightening what happens to water that leaves it. The proposed regulations would require all data centers to obtain wastewater pretreatment permits as Non-Significant Industrial User (NSIU), creating enforceable, City-monitored agreements that govern discharges into the sewer system - including spill prevention requirements, discharge limitations, and ongoing compliance reporting.

Property tax revenue considerations

Data centers generate an impactful amount of property tax revenue to fund City services and infrastructure. Over the last five years, data centers have generated more than $83 million in gross property tax revenue for the City.

In 2024, gross property tax revenue from data centers equaled the equivalent of what the City collects from roughly 8,300 average single-family homes. By 2030, based on known in-progress development, that figure is projected to grow to the equivalent of more than 22,700 homes.

Updated incentive guidelines

The proposed policy changes would tighten the criteria for public economic development incentives. Under the new guidelines, projects seeking incentives would need to demonstrate multiple viable competing sites, show substantial progress through the ERCOT interconnection approval process, identify a known end user, and meet a minimum initial investment threshold of $500 million. Grants and abatements would be capped at no more than 50% of the eligible value.

As with all incentives, these proposals would be considered case by case and projects must be fully compliant with City ordinances, policies and plans.

What's next

The City plans to hold an informational town hall for residents to learn more and provide additional feedback on proposed regulations in late June. A feedback form is also available to submit online.

The Zoning Commission is scheduled to take action on the proposed zoning amendments on July 8. City Council action on the full package, including zoning, noise, water and economic development policy amendments, is scheduled for Aug. 11.

Residents can find the full recommendations, work session presentation, FAQs and more online.

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