DENTON, Texas — Data centers in Denton will need a specific use permit, and a vote by the City Council, before they can be built anywhere in the city under new development rules the council adopted Tuesday night, Oct. 13.
The council voted 4-0 to approve the ordinance, case DCA26-0007a, after a public hearing at its special called meeting, according to the city's official meeting video. Council Member George Ferrie made the motion, and Council Member Suzi Rumohr seconded it. Four council members were present.
The Denton County Record previewed the vote before the meeting.
What the new rules do
According to the staff presentation at the hearing, the amendments:
- Remove warehouse data centers from several commercial and mixed-use zoning districts. Both warehouse and modular data centers will be limited to industrial and public facilities districts, and only with a specific use permit. None will be allowed by right.
- Raise the required setback from homes and residential districts to 300 feet, up from 100 feet.
- Require water and wastewater demand studies with the first application.
- Allow only closed-loop or free-air cooling systems.
- Require zero measurable light at the property line next to residential areas.
- Require approvals from the Public Utility Commission of Texas and ERCOT, the state grid operator, before a project can be placed on an agenda.
- Add a definition for "enterprise data center," a company's in-house computer facility, to set it apart from large hyperscale AI facilities.
The ordinance sets a maximum penalty of $2,000 for violations, according to the council agenda. The Planning and Zoning Commission had recommended approval 5-0.
Staff said the rules apply to new development after the ordinance takes effect. The city's two permitted data centers, one near the Denton Energy Center and one with a specific use permit south of Jim Christal Road, keep their rights to approved plans. Changes to those plans would be reviewed under the city's nonconforming-use rules.
Staff also said a new data center application was submitted last week but did not meet intake requirements. The city has not yet determined whether any part of that project is vested under the old rules.
Residents back the rules, ask for more
Three residents spoke during the hearing. All supported the changes, and two urged the city to go further on water, wildlife and oversight.
"These regulations that we're talking about are a start, but we can be better," said resident Rachel Weaver.
Ferrie said requiring a permit "protects us more while we're going through the moratorium phase." Mayor Pro Tem Nick Stevens, who led the meeting, called the vote "the beginning of a conversation," not the end.
Moratorium still pending
The code changes are separate from a proposed temporary moratorium on new data center applications. The council discussed that proposal at a work session the same afternoon. Staff said a second public hearing is set for Oct. 27, and the council is scheduled to consider adoption Dec. 1. A moratorium would need a supermajority vote and could last up to 180 days.
Outer Loop vote postponed
The council voted 4-0 to postpone a resolution supporting TxDOT's proposed alignments B and B2 for the Denton County Outer Loop until Oct. 27. Rumohr asked for the delay because two council members were absent.
Agenda materials are posted on the city's meeting portal, and official minutes will be posted on Legistar once approved.