Nine data centers already operate in Red Oak, Texas, with 14 more planned
Residents in the 'Data Center Corridor' south of Dallas report increased local opposition as state permits are paused pending grid audits.
By Layla Richardson ·
Nine data centers are currently active in Red Oak, Texas, while 14 additional facilities are in the planning stages, according to data from Cleanview and Data Center Map. These facilities are located in a stretch of land roughly 20 minutes south of Dallas, spanning between Interstate 35 and Interstate 45. This area includes the cities of Lancaster and Wilmer, which residents have begun referring to as the Data Center Corridor.
Local families in Red Oak have organized a group called No More Data Centers to oppose the continued expansion of these facilities. Members of the group state that new construction sites are appearing closer to their homes. The concentration of these facilities has turned the region into a focal point for data center development in the United States.
John McWilliams, an analyst at Cushman & Wakefield, noted that the market has been successful for existing operators, which makes the location more attractive to new entrants. His firm released a study ranking Dallas first globally for data center development. The report evaluated factors such as land availability, power supply, and ongoing construction projects. McWilliams projects that the number of facilities in the region could double within three to five years.
The expansion places strain on the local electrical grid. Dr. Krystel Castillo from the Center for Energy at the University of Texas in San Antonio explained that expanding the grid requires years of planning and substantial investment. She stated that the process requires participation from the government, data center operators, and the public to address community concerns and develop new technologies.
Haynes Strader, the Chief of Development at Skybox, a data center company currently building a mega-facility in Dallas, countered that there is substantial electrical connection capacity in the south part of the city. Strader said his company focuses on building in industrial zones rather than near residential areas. He also noted that these centers contribute millions of dollars in tax revenue to the city.
In Lancaster, three data centers are under construction, with eight more in the planning phase. In nearby Wilmer, one facility is already operational, and 11 others are planned. Governor Greg Abbott has paused state-level permits for new data centers until regulators complete audits of all large-scale projects seeking to connect to the state power grid.
The pause in permitting follows increased scrutiny of how these facilities affect local resources. The audits will examine the impact of these large-scale connections on the existing energy infrastructure before new projects can move forward.
