Fort Worth city council weighs data center development limits as Texas becomes the world's largest AI data center market.
Texas has emerged as the world's largest data center market, according to a new midyear report from commercial real estate firm JLL. The state has approximately 26 gigawatts of existing and under-construction data center capacity—roughly twice Virginia's 13 GW, which has historically dominated the sector.
The industry is experiencing extraordinary growth. More than 66 GW of data center capacity is currently under construction across North America, with 77% being built in what JLL calls "frontier markets." West Texas has been the biggest beneficiary of this shift. Dallas-Fort Worth alone has about 4,587 megawatts of existing capacity, making it one of North America's largest data center markets.
Demand continues to surge with little sign of easing. North America recorded 25 GW of new demand during the first half of 2026—roughly double the level a year earlier and five times the amount two years ago. Hyperscalers—the largest cloud and technology companies—remain the primary source of this demand.
However, the industry faces a growing challenge: community acceptance. JLL identifies concerns about electricity consumption, water usage, and noise as the sector's greatest obstacles. The firm highlights a striking gap in public attitudes: while 79% of Americans support U.S. leadership in artificial intelligence, just 14% support data center development in their own communities.
This tension is particularly acute in Fort Worth. The City Council this week approved resolutions directing the establishment of an expert commission to study data center development and initiated the legal process for a potential temporary moratorium on new data center applications while the city develops a new regulatory framework. A final decision on the moratorium will follow a public hearing process required by state law.
Fort Worth already hosts four data center developments comprising 10 buildings and more than 3 million square feet, with another under construction, four proposed within the city, and two more in its extraterritorial jurisdiction. The proposed regulations would restrict data centers to industrial districts, increase setbacks from residential areas to 250 feet for buildings and 300 feet for standby generators, establish noise standards, and tighten requirements for economic development incentives.
Texas officials are also intervening at the state level. Governor Greg Abbott ordered state regulators and ERCOT to pause approvals for data centers seeking grid connections until projects undergo audits examining their electricity and water demands, incentives, and potential effects on surrounding communities.
The JLL report frames the central issue succinctly: "Data centers do not belong in every community. Sustainable growth depends on development where projects and communities are compatible."