Dallas Leads Global Data Center Ranking as Construction Surges in Red Oak

Red Oak residents have organized a group called No More Data Centers to oppose new construction, stating that facilities are building increasingly close to their homes. The town sits within a corridor between Interstate 35 and Interstate 45, roughly 20 minutes south of Dallas.

According to data from Cleanview and Data Center Map, nine data centers currently operate in Red Oak. An additional 14 are under planning. In nearby Lancaster, three facilities are under construction with eight more planned. Wilmer has one operating facility and 11 in the planning stage.

John McWilliams, an analyst at Cushman & Wakefield, said the market success for operators makes the region more attractive. His firm recently published a study ranking Dallas first globally for data center development. The report cited land availability, power supply, and ongoing construction projects as key factors. McWilliams predicts the number of centers will double within three to five years.

Dr. Krystel Castillo of the University of Texas at San Antonio’s Energy Center said the rapid growth poses a challenge to the electric grid. Expanding the network requires years of planning and significant investment. She noted that the solution requires participation from the government, data center operators, and the community to address local concerns.

Haynes Strader, chief development officer at Skybox, a Dallas-based data center company currently building a mega facility, said there is substantial electrical connection capacity in southern Dallas. Strader stated his company focuses on industrial zones rather than residential areas. He added that their centers contribute millions in tax revenue to the city.

Governor Greg Abbott recently suspended state-level permits for data centers. He held the approvals pending auditor reviews of all large-scale projects seeking to connect to the state energy grid. This regulatory pause comes as construction continues in the Lancaster and Wilmer areas.