Massive Suburban Dallas Data Center Proposal Hindered

A proposal for a massive data center complex south of Dallas is facing resistance after Lancaster’s Planning and Zoning Commission voted against the project last week.

EdgeConneX, a Virginia-based company owned by EQT Infrastructure, is seeking to build a 165-acre campus, near Nokomis and Hash roads in the town about 20 miles south of Dallas, that could eventually span more than 2 million square feet, the Dallas Business Journal reported. Plans call for four data center buildings, a 15-acre electrical substation and four private parks. Gensler is attached to the design.

The board’s rejection set up a steeper path to approval. The proposal will still head to the full city council later this month or in August, but it will now require a supermajority to move forward, said Shane Shepard, the city’s economic development director.

The commission did not state its reason for denying the proposal. But the data center boom sweeping Dallas-Fort Worth has brought growing scrutiny from officials and residents concerned about power and water use, limited job creation and the long-term impact of dedicating large swaths of land to low-traffic, high-consumption facilities.

Lancaster has become a hotbed for data center activity, with multiple megaprojects in the works. Dallas-based Skybox Datacenters is developing a 1-million-square-foot campus in the suburb, and Stack Infrastructure is building a six-building, 1.5-million-square-foot complex scheduled to deliver next year.

EdgeConneX, founded in 2009, has developed more than 80 data centers globally, often partnering with cloud and AI firms. The firm purchased 63 acres near Atlanta, Georgia, last year for $318.5 million — over $5 million an acre — to build a data center for Microsoft. The company did not respond to a request for comment.

Data centers have proven politically fraught in certain communities, where residents are pushing for more housing or employment-generating development.

Millions of square feet are already in Lancaster’s data center pipeline, but the city’s burgeoning data center hub identity may hinge on how city leaders respond to mounting pushback and whether tech infrastructure and neighborhood growth can find a middle ground.

— Judah Duke