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Speakers back a six-month data center pause at its last hearing, setting up a Dec. 1 council vote

The council held the moratorium's first reading Tuesday. The ordinance would halt new data center applications for 90 days, with one possible extension, while a task force writes detailed water and power rules.

Isabel Abbott· AI-assisted, edited by Jake Team

October 28, 20263 min read

Denton Civic Pause - illustration, Jake Team LLC

Residents who spoke at the City Council's last required public hearing on a data center moratorium Tuesday night asked for the pause, and none spoke against it, KRLD radio reported. More than two dozen people addressed the council during the hearing, according to the station.

The council also held the first reading of the moratorium ordinance the same night, a step that city staff said required no action. The decision comes Dec. 1, when the ordinance returns for a second reading. Under the Texas Local Government Code it can take effect only with the votes of at least three-fourths of the full council.

What the pause would cover

As drafted, the ordinance would stop the city from accepting applications, issuing permits or granting approvals for data centers for 90 days. It would reach beyond the city limits to the areas where Denton provides water and wastewater service and to the territory served by Denton Municipal Electric.

Applications filed before the moratorium is adopted could not be halted, because state vested-rights rules protect them, staff wrote in the agenda information sheet. A developer could also ask for a waiver by pointing to an existing development agreement or by paying to supply the public facilities the city says are lacking.

The council could extend the pause once, for another 90 days, after a separate hearing. A staff timeline puts that hearing in March and the latest possible end date at May 31. Once it expires, state law bars the city from imposing another data center moratorium on the same area for two years.

Staff's reasons

The ordinance cites three state grounds for a pause. Denton's two water plants can treat up to 48 million gallons a day, and peak-day demand has reached 42.2 million, leaving a 5.8-million-gallon cushion. The Pecan Creek wastewater plant, rated for 21 million gallons a day, has handled 25.7 million on peak days, a deficit of 4.7 million gallons.

On the electric side, the utility has roughly 75 megawatts of capacity available at transmission voltage but no process for taking in, reviewing and lining up data center requests, according to the ordinance. Staff also said the code amendments adopted Oct. 13, which took effect Tuesday, set broad rules on cooling and utility studies but lack the technical detail needed to enforce them.

The work plan

A city task force on data centers would meet every two weeks while the moratorium is in force, starting Dec. 8, according to the work plan attached to the ordinance. Staff would inventory gaps in the city's design manuals in December, draft an electric utility policy for accepting new data center requests by early January and post a revised design manual on Jan. 29.

Council adoption of the electric policy, if needed, is penciled in for Feb. 16, ahead of the initial term ending March 1.

The city already hosts two large data center projects on city-owned land: Core Scientific, which leases about 78 acres with a power agreement for up to 391 megawatts, and WAHA/Qumulus AI, which leases 4 acres with up to 20 megawatts.

Staff reported that the two have produced more than $3.1 million in combined property taxes and $8.8 million in electric return on investment and franchise fees.

Speakers at the hearings raised electricity use, utility prices, grid reliability, air pollution, heat, jobs and the chemicals used to flush closed-loop cooling systems, according to the ordinance's own summary of public comments.

Sources

legistar2.granicus.com

legistar2.granicus.com

legistar2.granicus.com

audacy.com

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Isabel Abbott· AI-assisted, edited by Jake Team

Isabel Abbott covers Denton city hall, the council, and county government.

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