10 Data Centers Operating in Three South DFW Towns

Three towns south of Dallas currently host ten operating data centers, with nearly four times that number in the planning or construction pipeline.

Data from Cleanview and Datacenter Map reveals a dense cluster of development in Lancaster, Red Oak, and Wilmer. In Red Oak, nine facilities are live while fourteen more are proposed or under construction. Lancaster has three centers being built and eleven additional projects in the pipeline. Wilmer has one existing center with eleven new ones planned.

Industry analysts attribute this concentration to the region’s infrastructure. John McWilliams, a data center development researcher at Cushman & Wakefield, noted that developers gravitate toward established markets. McWilliams stated that Dallas serves as the anchor for a Texas market that is on track to surpass Virginia as the nation’s largest data center location. He added that the Dallas market’s power consumption is projected to nearly double within three to five years based on current construction.

Haynes Strader, chief development officer at Skybox, pointed to the area’s position at a major electric power intersection between West Texas and North Texas. Strader said the region has had excess power capacity for years. Skybox is currently building a 100-acre campus in Lancaster, a location the company selected for its industrial zoning.

Local residents in Red Oak have begun organizing in response to nearby construction plans. Chris Villegas, a resident, said he learned of a data center project adjacent to his property through social media. Villegas and neighbor Lacey Hammel helped form a group advocating for a pause in new construction. Hammel expressed concern that increased land value from data centers would drive further unchecked growth.

Red Oak Mayor Mark Stanfill said the city benefits from the tax revenue generated by these facilities. He noted that residents have long requested parks, road repairs, and lower taxes, which data center revenue helps fund. Stanfill described a data center as a more favorable deal for a city than a large residential development.

State officials have temporarily paused new data center permits pending a grid audit. The Texas Legislature is expected to review new regulations in January. Some analysts believe these measures will manage growth rather than stop it.