South Dallas Grid: 40 Data Centers Planned for Three Suburbs

Thirty-nine new data centers are planned or under construction in three communities south of Dallas, according to a mapping project by NBC 5 Investigates. When combined with the ten facilities already operating in Lancaster, Red Oak, and Wilmer, the region hosts or expects to host 49 such sites. These facilities stretch along Interstate 35 and extend eastward toward Interstate 45.

The concentration is uneven across the three towns. Red Oak currently operates nine centers and has 14 more in various stages of development. Lancaster has three centers under construction and 11 more in the pipeline. Wilmer has one active center and plans for 11 new ones. Analysts attribute this clustering to the area's power availability and major fiber optic connections.

John McWilliams, a data center development analyst at Cushman & Wakefield, noted that Dallas is on track to become the nation's largest data center market, potentially overtaking Virginia. He estimated that the Dallas market could nearly double its power consumption within three to five years based on current construction projects. McWilliams recently ranked Dallas as the top primary data center market globally.

Haynes Strader, chief development officer at Skybox, cited the region's historical role in connecting West and East Coast fiber networks as a key driver. He described south Dallas as a major electric power crossroads with excess capacity available for years. Skybox is constructing a 100-acre campus in Lancaster, a city council that has welcomed the development. Strader said the company aims to build in industrial areas to provide tax revenue while minimizing proximity to homes.

Not all residents view the expansion favorably. Chris Villegas, a Red Oak resident, learned via social media that a data center was planned just beyond his family's fence line. He and his neighbor Lacey Hammel co-founded a local group opposing further construction. Hammel expressed concern that unchecked growth would increase land values and bring years of construction traffic, noise, and new electric lines to residential areas. She described the nearby homes and farms as a "sacrifice zone."

Mark Stanfill, mayor of Red Oak, defended the development in a statement. He argued that data centers provide the tax revenue necessary for parks, road repairs, and lower taxes, which residents have long requested. He stated that a data center offers a better deal for the city than a large new residential neighborhood.

State policy may now moderate the pace of expansion. Governor Greg Abbott recently paused all state permits for data centers until regulators complete an audit of projects seeking to connect to the state electric grid. The Texas Legislature is expected to consider new rules in January. Industry analysts suggest the upcoming debate will focus on managing growth rather than halting it entirely.