Plano Is Studying Data Centers as Neighbors and Nearby Cities Push Back
Data centers came up at Plano's Planning and Zoning Commission on November 2, even though none was on the agenda. While presenting this year's updates to the comprehensive plan, a city planner responded to a request commissioners had made in October to consider "studying the potential impacts of data centers on city services and resources, including water demand."
"City staff and leadership are currently researching data centers and evaluating potential concerns associated with this land use," the planner told the commission. That research could feed into the plan's Built Environment pillar, which the city will review in 2027. The commission took no action on data centers that night.
Lavon residents are raising the same questions
East of Plano, residents in Lavon have spent much of this year pushing back on the possibility of a data center in their city. In December 2024, the Lavon City Council unanimously approved a zoning change allowing data centers on about 79 acres in the Elevon development, southwest of FM 2755 and Watkins Road. At that hearing, nearby residents raised concerns about noise, traffic, water, energy use, drainage and security, and the approval included a ban on cryptocurrency mining at the site.
City records show no data center applications have been filed in Lavon and no incentives have been offered, but the opposition has kept growing. Residents began raising data centers during council comments in May. Nine people spoke on the issue at an August meeting, ten spoke in favor of a moratorium at the first public hearing in September, and ten more voiced support at the second hearing on October 20. That night, the council unanimously approved the first reading of an ordinance that would pause data center permits citywide for 90 days. A final vote is scheduled for November 17.
Why water is the question
Water is a concern in both cities. Plano is one of the founding member cities of the North Texas Municipal Water District, which still relies on Lavon Lake as its primary water source. The district has reported record demand in recent years and plans to start building new pipelines from Lake Texoma late this year.
The district also points to data centers as a growing draw on water across Texas, citing research that estimates their share of the state's water use could more than triple by 2030, from under 1 percent today. Whether Plano's long-range plan should account for that is now on the list for 2027.