At its August 11 meeting, the Fort Worth City Council advanced a series of measures aimed at establishing a comprehensive regulatory framework for data center development in the city, initiating the legal process for a 90-day moratorium, creating an expert advisory commission, and adopting new application and infrastructure requirements.

Moratorium Process Launched

The Council adopted a resolution to begin the legal process required under Texas state law to enact a moratorium on new data center development applications.

The moratorium is intended to give the city time to complete its regulatory framework before new projects advance through the permitting process. State law requires two public hearings before a moratorium can be formally adopted.

The first hearing is scheduled no later than November 10, the week following the planned presentation of the expert commission's report.

The City would then complete additional public notices, hearings, and ordinance readings before a final vote, tentatively set for February 16, 2027. Adoption of the moratorium would require a supermajority of the City Council.

Under Texas law, a moratorium is limited to an initial term of 90 days, with one extension permitted for up to an additional 90 days.

A moratorium cannot be used to regulate matters outside the city's legal authority or to prohibit a lawful land use.

Projects already in progress or vested under Chapter 245 of the Texas Local Government Code would not be affected.

Should the moratorium be adopted, the City would be barred from imposing another moratorium on data center development for two years.

New Expert Commission Established

The Council approved a resolution directing the City to establish the Fort Worth Data Center and Infrastructure Commission, known as the DCIC.

The commission, which will consist of up to 11 members, has been charged with studying specific issues related to data center development and delivering a report and recommendations to the City Council by November 3.

The DCIC will be led by Dr. Mike Slattery, Ph.D., Director of the Institute for Environmental Studies at Texas Christian University.

Membership will draw from a range of sectors, including economic development and business, data center operations, environmental and natural resource management, a local electric provider, the Tarrant Regional Water District, an environmental advocacy organization, and five community members.

The commission's areas of study are organized around four major topics: electricity and energy, water use and local resources, land use, siting and neighborhood impacts, and economic development and fiscal impacts.

Application Requirement Tied to State Audit

The Council also adopted an ordinance requiring any new data center seeking to develop within Fort Worth's city limits to provide proof of all permits and approvals required by the Public Utility Commission of Texas and the Electric Reliability Council of Texas before it can file for a development permit from the City.

This action follows a directive issued on August 3 by Governor Greg Abbott, who ordered the Public Utility Commission of Texas and ERCOT to conduct a comprehensive verification and audit of all data centers advancing through ERCOT's interconnection process, and required that the audit be completed before any new data center project moves forward.

The city described its ordinance as consistent with the governor's directive, and noted that the state-level action functionally places a pause on new data center development across Texas while the audit process is completed.

Water Infrastructure Standards Updated

In a separate but related action at the same meeting, the Council adopted an updated Installation Policy and Design Criteria for Water, Wastewater and Reclaimed Water Infrastructure.

The City noted this policy update has been in development for the past five years and addresses a range of issues beyond data centers. Among the provisions specifically relevant to the data center industry, the updated policy requires all new data centers located within the Fort Worth Water Utility's service area to use closed-loop cooling systems.

The City described this requirement as significantly reducing water use compared to older evaporative cooling systems.

New data centers would also be required to obtain wastewater pretreatment permits as Non-Significant Industrial Users, a classification that ensures monitored and compliant discharge practices.

The City stated that these infrastructure updates reflect key areas of concern that residents raised during community input opportunities.

Context and Community Engagement

The August 11 actions represent the most recent steps in an ongoing effort by Fort Worth to create clear standards for data center development as interest in siting such facilities in the region has grown.

The cluster of actions, an expert commission, a moratorium process, a state-aligned permitting requirement, and infrastructure policy changes, reflects the City's effort to use multiple tools simultaneously within the boundaries of its regulatory authority.

Fort Worth officials encouraged residents to remain engaged as the process moves forward, with the City working to refine zoning, noise, water, and economic development standards for data center development.

The City noted that additional information, including proposed regulatory language, presentations, and frequently asked questions, is available on its website.