The proposal for a $1 billion data center hit a wall after the Fort Worth council tabled a vote on a tax break for the project, primarily citing questions about how it would benefit the local economy.
Edged Data Centers, a subsidiary of Endeavour, wants to build a waterless facility on 186 acres of industrial land in Veale Ranch, a rapidly growing development in west Fort Worth.
City Council members unanimously voted during their March 31 meeting to delay a decision on an agreement with Edged that would give the company a 50% tax break.
Council member Michael Crain, whose district encompasses the site of the proposed data center, said a more “robust conversation” with Fort Worth officials about the agreement is needed before moving forward.
In a report dated March 23, Crain requested that City Manager Jay Chapa provide a report on how Fort Worth officials evaluate, negotiate and approve data centers amid growing debate over the technology and infrastructure.
Before motioning to delay the vote, Crain said he would approve the tax abatement on the condition that Edged meets the following criteria:
- Complies with city noise ordinances and limits in residential areas.
- Does not exceed recommended limits on water usage outlined in approved water studies.
- Provides a report that shows compliance with the tax abatement.
- Meets lighting, screenback and setback requirements to nearby properties.
- Complies with state and federal environmental standards.
- Maintains a publicly accessible website detailing the data center’s progress and updates.
Council members Charlie Lauersdorf and Jeanette Martinez urged city officials to seek approval from the Electric Reliability Council of Texas — the agency that oversees and maintains the state’s power grid — when data centers look to break ground in Fort Worth. State law allows ERCOT to cap or shut down energy demands for facilities with large electric loads.
“We can certainly do better,” Lauersdorf said.
Martinez emphasized the need for establishing restrictions on crypto and data mining facilities. In agreement with her fellow council members, Deborah Peoples said the public’s well-being must be prioritized.
“This is not something that’s going away,” Peoples said. “What we have to do as a body is try to ensure we do it in the safest way and most profitable way for the citizens — and I don’t mean revenue, but what they can get out of it.”
The vote will likely be rescheduled for a May 12 council meeting, Mayor Mattie Parker said.
The delay comes days after Texas legislative leaders listed data centers as a key priority to study ahead of the 2027 session.
The proposed Fort Worth agreement offers Edged a 50% break from property taxes so long as they provide job opportunities and meet salary and investment thresholds over the course of 10 years.
Speakers in opposition approached the dais with requests that the city create a data center-centric ordinance and conduct more research on the facilities’ impact on the environment and local economy.
“The only way we have written protections is in an (economic development abatement) agreement,” said Benbrook resident Brenna Sestak. She urged Fort Worth leaders to pursue more strict zoning and environmental regulations on data centers.
“The time to act, to update our laws to keep up with new and changing industries is now, before irreparable damage is done to Fort Worth, its citizens and open spaces,” Sestak said.
All of those speakers, some representing the newly formed advocacy group 2871 Community Coalition, were clad in green, symbolizing their solidarity with the community and their calls on Fort Worth to regulate growth and development.
“Data center builders are making much more money from tax exemptions than predicted,” Fort Worth resident Morgan Ford said. “I commend your efforts to bring business and revenue to the city of Fort Worth, but not like this. Not by alienating constituents.”
Planned near the intersection of Interstate 20 and FM 2871 near Benbrook, the data center’s tax break would cost Fort Worth $16 million in property taxes but bring in $47 million over the life of the agreement, according to city documents.
The project has drawn scrutiny from Fort Worth and Benbrook residents in the past month. They demanded the company be transparent with the public regarding expenses and consumption of natural resources, conduct environmental studies, and invest in the 2871 overpass.
Hundreds of people flooded a March 24 meeting, where they formally presented their demands for Edged and developer PMB Capital to provide regular third-party studies on noise, power usage and water consumption.
However, company representatives said then they either already did or were not required to provide such studies.
Edged director of development Bill Greenwood said at the meeting the company wants to be a “good steward to the community.”
The company describes its data centers as “ultra efficient” and sustainable. In order to move forward with plans, Edged contracted with Oncor to operate its own electrical substation and received approval from ERCOT.
“You don’t get through ERCOT unless you can get through the reliability,” PMB Capital partner Taylor Baird said.
Edged uses a closed-loop method, which recycles water for cooling, as opposed to wasting or consuming water. Additionally, Edged was required to submit a water study, committing to pay fees that allow for only so much water.
“Any necessary upgrades we are making, Edged is paying for it,” Greenwood said.
Company officials also committed to maintaining low noise levels and not exceeding city decibel limits. They plan to install property setbacks to mitigate any noise from operations.
If the tax abatement is approved, Edged would be Fort Worth’s second-highest taxpayer, benefiting schools and allowing for more publicly funded city infrastructure and development, Baird said.
“Edged Data Centers was founded on energy sustainability, on zero water use and on being a good steward of the community,” Baird said. “We trust they will be good for Veale Ranch as a development. It’s an important investment.”
Data centers and related projects have garnered backlash across the state — and country — for requiring millions of gallons of water and large quantities of electricity to power computer processing, such as artificial intelligence. Such projects are increasingly being brought forward across North Texas.
Parker said although Edged has proven itself as an “important provider,” there are unanswered questions about the project, such as why the tax abatement was proposed.
“It’s not a reflection of how they do business. It’s just an understandable concern across the country about where we’re headed on the data center front,” Parker said.
Among the areas state lawmakers will explore in regard to data centers are their impact on water supplies, electricity, properties and economic growth.
Nicole Lopez is the environment reporter for the Fort Worth Report. Contact her at nicole.lopez@fortworthreport.org.
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