Tarrant Officials and Advocates Split on How Far Local Governments Should Go on Data Center Rules

Deciding which parts of data center development should be regulated locally is one of the central questions facing lawmakers as the Texas legislative session approaches in January, according to Tarrant County Commissioner Matt Krause. He and two other panelists laid out differing views on the issue at the Fort Worth Report 2026 Growth Summit on Thursday.

"We understand the state's going to have to speak to the data center issue," Krause said, but he argued that much of the regulation of how facilities look and operate in each community should remain with local government. He pointed to Denton's 2014 fracking ban, which quickly set off a clash with the state. Officials sued, alleging the prohibition was "arbitrary, capricious and unreasonable," according to a report from The Texas Tribune.

Krause appeared on the first of the summit's three panels alongside Fort Worth City Council member Elizabeth Beck and Adrian Shelley, director of Public Citizen Texas. Beck, who has served on the council since 2021, stressed local control, noting that Fort Worth is a home-rule city and may adopt any regulation the state has not expressly barred. She said business incentives for data centers should be taken off the table. "(Data centers) are not hurting for funds," she said.

Water supply and planning, air quality, energy and state sales taxes fall solely under state authority, and Beck said she wants the state to handle everything it is explicitly responsible for. Local leaders have also disagreed over whether cities should adopt rules during the current building boom or wait for statewide laws.

Shelley, who has worked with Public Citizen since 2017, said local officials should talk with residents about what they want from the industry and use that to "send the signal" to lawmakers. He said dozens of Texas counties have passed resolutions urging timely legislative action, and some have tested their authority by proposing moratoriums or outright bans. "Cities should be working up to the limits of their authority because, as I am seeing it, that's what their constituents want," he said.

Krause, a veteran lawmaker of 10 years, favored a "wait and see" approach while local governments press Austin to act. He cited the time and resources needed to craft rules for specific developments and warned against building a full framework only for the state to override it. Tarrant County has already asked the legislature to end data center tax abatements, though Krause said incentives for other industries should not be wholly eliminated.

Beck disagreed with relying on the state. "I trust the state government like I trust gas station sushi," she said, drawing laughter. She welcomed Gov. Greg Abbott's audit of data centers and pause on environmental permitting for them, but said uncertainty remains after the Nov. 3 midterm elections. "I don't want to put Fort Worth in the hands of people who we don't know what they're going to do," she said.

Panelists also discussed the proposed Circle T data center in Westlake, which borders Keller and has drawn criticism from residents and leaders in both cities. Krause urged neighboring officials to stay in contact and said he would support a body modeled on the Regional Transportation Council, which brings together North Texas officials for long-term transit planning, when several cities are involved in a project. Better communication, he said, would mean fewer situations like the one in Westlake and Keller.

Beck said the Westlake project shows a need to change notification laws. Under Fort Worth code, residents within 300 feet of a site seeking a zoning change must be notified by mail, but that requirement does not extend to people in nearby or bordering cities. She said state law should ensure all affected residents are notified regardless of municipality.

Shelley said he agreed with both perspectives and added that local officials should never sign nondisclosure agreements related to data centers. He also urged developers to give surrounding communities accurate information, including whether a facility has its own power sources. "Transparency is of the utmost importance," he said.