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The Data Center Divide

City of Wichita Falls

Mixed Data Center Policies

Texas combines substantial, long-term sales-tax breaks for qualifying large data centers with grid-connection studies, fees, and infrastructure costs that can make projects slower and more expensive. Some large facilities may also face emergency power reductions or grid-stability requirements; the tax benefits have demanding eligibility conditions.

Rating and summary from Texas statewide as there are no scored current or future laws outside temporary restrictions for City of Wichita Falls.

failed · City of Wichita Falls
Rezones approximately 98 acres near Airport Drive from General Commercial and Multifamily Residential to Light Industrial and changes the Land Use Plan from High Density Residential to Light Industrial to facilitate construction of a data center under Ordinance 07-2026.City of Wichita Falls Ordinance 07-2026 (2026)

What this means

As proposed, the zoning change would allow a data center on the site, while excluding cryptocurrency mining; the special-use provision for a data center is an important development benefit. Noise, lighting, traffic, setback, and screening requirements would add costs and steps, so the overall effect is moderately positive; the proposal did not pass, but is assessed here as if enacted.

People behind it

  • Applicant who submitted the rezoning request to facilitate development of a data center.

  • Director of Development Services and staff presenter responsible for administering and presenting the rezoning proposal.

  • Reviewed the rezoning proposal and recommended approval.

Restrictions & requirementsHide restrictions & requirements22
  • Data centers are allowed only as a special development use within the Planned Unit Development–Commercial Use district, rather than as a generally permitted use.

  • Cryptocurrency mining and other cryptocurrency operations are expressly excluded from the definition of a permitted data center and may not operate unless the PUD is amended.

  • Data center development must comply with the Light Industrial District regulations unless the PUD specifically modifies them, including applicable lot, height, coverage, and setback requirements.

  • A minimum 40-foot setback is required along shared property lines with existing residential uses; the setback may be reduced to 25 feet only with Development Services Director approval and approved mitigating measures such as screening.

  • Mechanical equipment, cooling systems, generators, substations, and rooftop equipment must meet the PUD’s noise standards at adjacent property lines, and a licensed acoustical engineer must certify compliance before a certificate of occupancy is issued. Emergency operations, generator testing between 7:00 a.m. and 7:00 p.m., and commissioning are exempt.

  • Exterior lighting must be fully shielded and downward-directed, prevent light trespass beyond property boundaries, remain at or below 0.5 foot-candles at the property line, and may not flash, strobe, or pulsate.

  • Before a building permit is issued, the developer must document the existing condition of Airport Drive through a pavement condition assessment, video documentation, and any structural evaluation required by the City Engineer.

  • The developer must repair construction-related damage to Airport Drive to at least its preconstruction condition, meet TxDOT standards, and complete roadway restoration or make a TxDOT-approved payment or provide another financial mechanism before final project acceptance.

  • A Traffic Impact Analysis must be submitted and approved before site plan approval and before building permits are issued. It must evaluate construction and operational traffic, access points, roadway improvements, and intersection service levels.

  • No data center access points may be used unless approved through the Traffic Impact Analysis process and by TxDOT.

  • Mechanical equipment, including rooftop equipment, must be screened from public rights-of-way, and generator yards and cooling equipment must generally be enclosed by an eight-foot screening wall unless the Development Services Director approves an alternative.

  • Each development phase must provide adequate parking, required fire access, and sufficient utility capacity.

  • Minor site-plan adjustments require Development Services Director approval and may not create additional access points, reduce required setbacks, or shift building footprints by more than 10%; major amendments require Planning and Zoning Commission and City Council consideration.

  • Data center parking must be provided at a ratio of one space per employee on the largest shift, based on a certified staffing plan and maximum projected employment for each phase. Administrative parking reductions require Development Services Director approval.

  • Landscaping must limit canopy trees to the development perimeter, prohibit groves of trees, and restrict plantings beneath parking-lot lighting to deciduous understory trees or shrubs to reduce bird-air-strike hazards near Sheppard Air Force Base.

  • Temporary workforce housing is limited to RVs, HUD-code manufactured housing, or approved industrialized housing; permanent residential structures are prohibited.

  • Temporary workforce housing may operate only during construction under an active building permit and for no more than three months after a certificate of occupancy unless extended through issuance of a permit for another primary data center structure.

  • Temporary workforce housing drives and parking must use an approved all-weather surface, maintain emergency access, and receive Fire Marshal approval before occupancy; fire lanes must remain unobstructed.

  • Temporary workforce housing must comply with City utility codes, TCEQ water and wastewater requirements, applicable on-site sewage rules, licensed sanitation-provider requirements, electrical licensing, and the National Electrical Code.

  • Temporary workforce housing, temporary drives, and associated facilities must be removed within 90 days after the approved housing period expires, and the site must be restored under the approved site plan.

  • Substations, transformers, and backup power systems must comply with applicable NFPA and International Building Code standards, be screened from public view, and meet the PUD’s noise standards.

  • All development must comply with building, fire, stormwater and drainage, FAA height, airport zoning, and TCEQ requirements.

Benefits & exceptionsHide benefits & exceptions8
  • Rezoning approximately 116.93 acres at 2100 and 2226 Airport Drive and 3601 Central Freeway to Planned Unit Development–Commercial Use (PUD-CU), allowing a data center as a special development use.

  • The PUD permits all uses allowed by right or by conditional-use permit under the underlying General Commercial, Multi-Family Residential, and Light Industrial districts, in addition to the special data-center use.

  • The PUD incorporates a conceptual development plan and site plan, providing an approved framework for a phased data-center campus with up to nine buildings totaling approximately 1.35 million square feet.

  • Development may proceed in phases, provided each phase supplies adequate parking, required fire access, and sufficient utility capacity.

  • The Director of Development Services may approve minor site-plan adjustments administratively, including building-footprint shifts of up to 10%, as long as no new access points are added and required setbacks are not reduced.

  • Temporary workforce housing for data-center construction or early operations may be provided using RVs, HUD-code manufactured housing, or approved industrialized housing, subject to permit, utility, fire-safety, screening, duration, and removal requirements.

  • Temporary construction parking and internal drives may use stabilized gravel, crushed limestone, or another all-weather surface, provided fire access and other safety requirements are met.

  • The data-center use is expressly distinguished from cryptocurrency mining, allowing the former while excluding cryptocurrency operations unless the PUD is expressly amended.

Sources

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