Data Centers Surge in Three South DFW Towns

Ten data centers are currently operating in Lancaster, Red Oak, and Wilmer. Nearly four times that number are in various stages of planning or construction. This cluster sits along a corridor stretching from Interstate 35 to Interstate 45, south of downtown Dallas.

Development data from Cleanview and Datacenter Map shows a specific breakdown for each municipality. Red Oak hosts nine active sites, with 14 more in the pipeline. Lancaster has three under construction and 11 proposed. Wilmer has one existing facility and 11 planned additions. These figures include sites under active construction, proposed locations, and expansions of existing campuses.

Industry analysts attribute this concentration to infrastructure advantages. John McWilliams, who tracks development for Cushman & Wakefield, cited the region's access to power and major fiber connections. He noted that existing success attracts further investment. "Everybody wants to be where everybody already is, right? The market has proven to be successful for data center developers and operators. And so that attracts more as well," McWilliams said.

McWilliams recently published a study ranking the Dallas area as the world's number one primary data center market. The report weighed power availability, land access, and the current construction pipeline. He stated that the Texas market is positioned to overtake Virginia as the nation's largest. Measured by power consumption, the Dallas market is on track to nearly double in size within three to five years based on current projects.

Haynes Strader, chief development officer at Skybox, identified the area's role in national connectivity. Skybox is building a 100-acre campus in Lancaster. Strader said the region has long served as a center for fiber links between the West Coast and East Coast. The area also sits at a major electric power intersection between West Texas and North Texas. "A lot of that power connectivity sits in south Dallas, and so there was a lot of excess capacity for many, many years in south Dallas," Strader said.

Skybox aims to build in industrial zones rather than residential areas. The company stated its facilities generate millions in tax revenue. Lancaster's city council has welcomed the construction. Strader predicted the boom would continue for the next five to 10 years. He described the region as having a massive amount of generation capacity and a talented workforce.

Residents in these communities are grappling with the rapid changes. Chris Villegas, a Red Oak resident, said he learned about a nearby data center plan through social media. He moved to the area seeking a country lifestyle. "We saw tractors driving down the street, lots of just farmland," Villegas said. He is not opposed to all development but believes Red Oak does not need more facilities near homes.

Villegas and neighbor Lacey Hammel helped launch a local group opposing further construction. Hammel expressed concern that increased land value would drive unchecked growth. "I feel like if they add all of this, then the land is going to be even more valuable in that regard. So, the growth would seem to just continue unchecked," Hammel said. Residents worry about traffic, noise, new electric lines, and home values.

Compass Data Centers is planning a build near Villegas' home but did not respond to media inquiries. Red Oak Mayor Mark Stanfill addressed the concerns in a statement. "I understand, no one wants development next to them.." Stanfill argued that data centers help the city build parks, fix roads, and lower taxes. He wrote that a data center is a better deal for a city than a giant new neighborhood.

Texas Governor Greg Abbott recently halted state permits for data centers. Regulators are auditing projects seeking grid connections. The state legislature is expected to consider new regulations starting in January. Industry analysts believe the focus will be on managing growth rather than stopping it. "So much, so fast, is really what worries me because there's so much unknowns right now," Hammel said.