City advances next steps in data center regulation development process

City advances next steps in data center regulation development process

Published on August 12, 2026

This City of Fort Worth is continuing efforts to establish clear standards for data center development in Fort Worth utilizing tools under the City's regulatory authority. At the Aug. 11 City Council Meeting, City Council moved forward several actions to guide next steps in that process, including:

• Initiating the process for a 90-day moratorium on data center development
• Establishing the Fort Worth Data Center & Infrastructure Commission (DCIC)
• Adopting an application requirement for data centers

Fort Worth Data Center & Infrastructure Commission (DCIC)

Council approved a resolution directing the City to establish an expert commission, the Fort Worth Data Center & Infrastructure Commission (DCIC), to study specific issues and provide a report and recommendations within the City's regulatory authority to City Council by Nov. 3.

Led by Director of the Institute for Environmental Studies at Texas Christian University Dr. Mike Slattery Ph.D., the commission of up to 11 members will include individuals representing the economic development business sector, data center operations, environmental/natural resource management, a local electric provider, Tarrant Regional Water District, an environmental advocacy organization and five community members.

The DCIC's areas of study include:

1. Electricity and Energy
2. Water Use and Local Resources
3. Land Use, Siting and Neighborhood Impacts
4. Economic Development and Fiscal Impacts

Moratorium

Council adopted a resolution that initiates the legal process to enact a moratorium on new data center development applications while the City completes its regulatory framework. A moratorium is a tool outlined under state law that allows a city to temporarily pause certain types of development while it prepares regulations to address a specific concern.

In accordance with the Council's direction, the first of the two required public hearings to advance the moratorium process will be held not later than Nov. 10, the week following the presentation of the DCIC's report. The City would then need to complete the additional public notices, hearings and ordinance readings as outlined under state law before voting on adoption of the moratorium, tentatively set for Feb. 16, 2027. This action will require a supermajority of the Council to approve and begin the initial 90-day term of the moratorium.

Per state law, a moratorium is limited to an initial duration of 90 days, with one extension allowed up to an additional 90 days. A moratorium cannot be used to regulate issues outside the City's authority or prohibit a lawful land use. It does not impact projects already in progress or vested meeting the requirements of Chapter 245 of the Texas Local Government Code. Should the moratorium be adopted, the City may not impose another moratorium on data center development for two years.

Application requirement

On Aug. 3, Gov. Greg Abbott directed the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to conduct a comprehensive verification and audit of all data centers advancing through ERCOT's interconnection process, requiring that this audit be completed before any new data center project moves forward. This functionally puts a pause on new data center development across Texas.

In light of the Gov. Abbot's Aug. 3 directive, the Council also adopted an ordinance that requires new data centers seeking to develop within Fort Worth's city limits to provide proof of all necessary permits and approvals as required by PUCT and ERCOT in order to file for a permit for development from the City. This action is consistent with the governor's directive and limits new project permitting activity as the state's audit process is completed.

Installation Policy and Design Criteria for Water, Wastewater and Reclaimed Water Infrastructure

Additionally at the Aug. 11 meeting, the Council adopted the Installation Policy and Design Criteria for Water, Wastewater and Reclaimed Water Infrastructure. This update to the Policy and Design Criteria has been in development for the past five years and the updates cover a myriad of issues.

Among other updates, the Policy and Design Criteria would require all new data centers in the Fort Worth Water Utility's service area to use closed-loop cooling systems - significantly reducing water use compared to older evaporative systems - and obtain wastewater pretreatment permits as Non-Significant Industrial Users (NSIU), ensuring monitored and compliant discharge practices. These updates reflect key areas of concern highlighted by residents during community input opportunities.

Next steps

Residents are encouraged to stay engaged as the process moves forward to refine zoning, noise, water and economic development standards for data center development in Fort Worth. Additional information, including proposed regulatory language, presentations and FAQs, is available online.

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