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City passes new Data Center ordinance
Post Date:June 23, 2026 4:30 p.m.
Lewisville City Council voted unanimously on June 15, 2026, to approve a landmark ordinance requiring data centers to obtain a Special Use Permit before locating in the city, giving residents a formal voice and City officials the tools to protect Lewisville’s water supply, power grid, and neighborhoods.
Before any new data center can open in Lewisville, residents will now have two formal opportunities to weigh in. Each application must clear a public hearing before the Planning and Zoning Commission and a second hearing before the City Council, giving the community a voice at every stage of the review. The City retains full authority to impose conditions on any approved permit or reject proposals outright if they fall short of compatibility criteria. That protection simply did not exist before this ordinance.
"We welcome responsible growth, but our residents come first. Data centers can sometimes consume resources at a scale that can strain communities, and this ordinance ensures every proposal is assessed thoroughly before it is approved. Lewisville is open for business, and we intend to keep it a great place to live," said City Manager Claire Powell.
Under the ordinance, data centers are formally defined for the first time in Lewisville’s Unified Development Code and are prohibited entirely in residential areas. In Light Industrial, Warehouse, and Heavy Industrial districts, each data center use will be evaluated on, among other things, its compatibility with surrounding uses and community facilities, taking into consideration factors such as water and electrical infrastructure capacity, noise levels, and environmental impact. The City may attach conditions to any permit approval to ensure impacts on the surrounding properties are mitigated before construction begins.
City planners flagged the urgency. Lewisville’s abundance of Light Industrial zoning and existing warehouse space makes it a prime target for data center developers fueled by the explosive growth of cloud computing and artificial intelligence. The City Council’s unanimous vote ensures Lewisville has the regulatory framework in place before that demand arrives at its door.
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