East Texas City Votes to Ban Data Centers

Chandler, Texas, has approved an ordinance banning new data centers within city limits. The measure also prevents existing facilities from expanding and allows the city to enforce the ordinance through fines, permit denials and other legal actions. The vote comes as Texas continues debating the rapid growth of AI data centers statewide.

Why Did Chandler Ban Data Centers?

According to KETK, the Chandler City Council unanimously approved the proposed data center ordinance during Tuesday's meeting, according to Council Member Bob Valliere.

READ MORE: Tyler Blocks Controversial Data Center Proposal

What the New Ordinance Prohibits

The ordinance prohibits data centers from operating as a permitted, special, conditional, accessory or temporary use anywhere within Chandler city limits. The vote comes as Texas continues debating the rapid growth of AI data centers across the state.

The ordinance comes after Texas Governor Greg Abbott decided to pause all new data center projects statewide as all projects must be audited by the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) prior to connecting to the state's power grid.

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How Chandler Can Enforce the Ban

The city of Chandler's new ordinance also requires all existing data centers in the city not to expand and states that the city can enforce the prohibition on data centers through:

• Stop-work orders
• Permit denial or revocation
• Civil injunction
• Municipal court prosecution
• Any other remedy authorized by Texas law

Violating the ordinance is classified as a misdemeanor and may result in penalties allowed under Texas zoning law, including fines of up to $2,000 per day.