Red Oak’s city council chambers were packed beyond capacity last night as residents lined up to push back against a proposed zoning change that could clear the way for a sprawling high-tech industrial park with data center facilities. The public comment period stretched late into the evening while neighbors aired worries about water usage, traffic, noise and the long-term impact of massive server campuses sitting right next to their homes.
What the proposal would do
The zoning request on the agenda, filed as ZC25-28 by Alamo Mission LLC, asks the council to reclassify nearly 830 acres along FM 2377 to a Planned Development designation known as PD-66R7. That change would allow the developer to submit plans for a Data Center Complex at the northwest corner of East Ovilla Road and State Highway 342, according to the City of Red Oak. The agenda packet also outlines related public hearing items and draft ordinance language that would permit commercial-industrial uses on the property if the rezoning ultimately wins approval.
Neighbors packed the chambers
Dozens of residents signed up to speak, filling every seat and extending the hearing well into the night, NBC 5 Dallas-Fort Worth reported. “We’re welcoming growth. We understand these data centers are needed. We don’t need them right next door,” Elda Villegas told the council, summing up broader concerns about how such a large industrial-style complex could change nearby neighborhoods.
Developers and city tout the upside
City materials and industry filings highlight large property tax revenue projections and infrastructure upgrades as major selling points for so-called hyperscale data campuses, a pattern already visible across southern Dallas-Fort Worth. In April, a $2 billion Red Oak AI campus was reported as moving forward for DataBank and other operators, with local officials pointing to anticipated economic gains tied to those investments, per Hoodline.
Statewide debate: growth vs. local control
The Red Oak fight is playing out against a much bigger Texas backdrop. Across the state, roughly 400 data center projects are planned, compared with about 40 just two years ago, NBC 5 Dallas-Fort Worth reported. As the numbers climb, lawmakers and county officials have started calling for tighter oversight, including a push from state Rep. Helen Kerwin. The Texas Tribune has noted that counties such as Somervell are asking state leaders to pause new applications while water demands and electric grid impacts are reviewed.
What happens next
For now, yesterday’s meeting counted as a public hearing only. Under Red Oak’s process, the council must later take up a formal ordinance before any rezoning becomes final. That means the proposal remains in the public-hearing phase and could return at a future council meeting after staff completes their analysis and any revisions are made, according to the City of Red Oak.
Legal and tax angle
The same agenda also shows the council considering a Reinvestment Zone designation that would make the property eligible for tax abatements, a common incentive used to lure large-scale developments and a key part of many data center financial packages. If state lawmakers follow through on new guidance or a temporary pause on projects, those local tax and incentive talks could quickly become a political flashpoint, The Texas Tribune reported.
