North Texas Grid Faces Double Load as Data Center Count Surges

Nine data centers currently operate in Red Oak, Texas, a small community located 20 miles south of Dallas between Interstates 35 and 45. Another 14 facilities are in the planning stages in the same area, according to data from Cleanview and Data Center Map. This cluster sits within what Telemundo 39 Investiga describes as a data center corridor that also includes the cities of Lancaster and Wilmer.

The concentration of these facilities has created a distinct market advantage for the region. John McWilliams, an analyst at Cushman & Wakefield, noted that success for early operators has made the market more attractive to new entrants. His firm’s recent study ranked Dallas first globally for data center development. The ranking weighed factors such as land availability, electrical supply capacity, and active construction projects. McWilliams projects that the number of facilities in the region will double within three to five years.

Local residents are responding to the density of construction. Families in Red Oak have formed a group called No More Data Centers to oppose new projects. Members of the group state that new construction is increasingly located near their homes. The corridor stretches through Lancaster and Wilmer, where three data centers are under construction in Lancaster and eight more are planned. In nearby Wilmer, one facility is operational and 11 are in the planning phase.

The rapid growth poses a technical challenge for the power grid. Krystel Castillo, a researcher at the University of Texas at San Antonio’s Energy Institute, explained that expanding the grid requires years of planning and significant investment. She emphasized that the solution requires participation from government officials, data center operators, and the local community. Her institute is developing simulation technology to model how data center demand affects the electrical supply.

Industry representatives argue that the infrastructure can handle the load. Haynes Strader, head of development for Skybox, a data center company building a large facility in Dallas, stated that there is ample electrical connection capacity in south Dallas. Strader said the company focuses on industrial zones rather than residential areas. He also noted that these facilities contribute millions of dollars in tax revenue to the city.

State leadership has paused the approval process to address these concerns. Governor Greg Abbott cancelled statewide permits for new data centers. The halt remains in effect until regulatory bodies finish auditing all large-scale projects seeking to connect to the state energy grid. This move follows a period of rapid expansion that has outpaced local utility planning in the North Texas region.