Irving — City staff and councilmembers spent the work session reviewing a proposed process that would require new data centers to seek a conditional use permit (CUP) and to follow updated development standards intended to limit noise, visual impacts and infrastructure strain.

City economic development and planning staff presented the background and a draft ordinance that would make data centers subject to periodic CUP review and allow council to attach site-specific conditions, rather than letting them be built by right in many industrial districts. Bridal Hillwood, economic development manager, told the council the goal is to allow case-by-case review "so you can determine on a case-by-case basis whether that location is appropriate."

The discussion followed a staff overview of the Texas Media Production Development Zone Act, a separate state program that allows sales-tax exemptions for qualified film and production facilities. Staff said the city has received a nomination for a production-zone location and will submit that nomination to the Texas Film Commission for final approval.

Why it matters: Council members stressed that data centers are not identical to warehouses and that locations matter for community design. Councilmember Brad (first name only in transcript) said the city should be deliberate about where it permits data centers, arguing that some corridors — including parts of State Highway 161 — should be preserved for commercial office uses. "We ought to be thoughtful about whether we do a CUP or whatever designation where we think the use is appropriate," he said.

Key details
- Staff recommended that all new data centers require a CUP so council could set conditions for noise, screening, cooling systems and other site-specific items. Staff noted that existing data centers with prior entitlements would not be retroactively subject to that process unless they applied anew.
- Encore (electric utility representative in staff communications) supplied engineers’ guidance that certain nearby transmission lines could be sized to serve data centers, but staff emphasized Encore’s statement was not a guarantee and a detailed electrical study would be required for any specific project. As planning director Jocelyn Murphy said, Encore "hedged" its response: the lines identified are typical for data centers but would still require a project-specific study.
- Council discussed requiring enclosed cooling and generator systems and noted industry trends toward enclosed systems that consume less water and generate less exterior noise. Councilmember Mark (first name only) said the city should identify preferred areas to concentrate future data-center development so utility upgrades would be efficient and less disruptive.
- Staff estimated notices for the CUP-related ordinance amendments and associated public hearings would reach roughly 6,000 property owners and occupants; Planning and Zoning public hearing is scheduled for Feb. 3, with council consideration on Feb. 6.

Local project examples and context
- The council considered a Calvary Temple site at 4401 N. State Highway 161: staff recommended approval of a comp-plan amendment and rezoning that would allow warehouse and explicitly allow data-center uses by special site plan in the 161 overlay. Staff noted the site and surrounding airport-owned parcels are within DFW Airport noise zones and that a data center is among uses the potential buyer/developer is considering. Council members urged caution, noting proximity to residences and the differing public impacts of warehouses versus data centers.

Process and next steps
- The council gave informal direction to move forward with the ordinance that would require CUPs for new data centers, and staff will return with updated draft language that folds the June development standards into the CUP requirements and adds clearer language on enclosure of mechanical equipment and options for periodic reviews or revocation if CUP conditions are violated.

Quotes
- "This would at least allow you to determine on a case-by-case basis whether that location is appropriate," Bridal Hillwood, economic development manager.
- "Encore said these are the lines that would be typical to serve a data center," Jocelyn Murphy, director of planning, describing utility feedback and cautioning that Encore required a detailed study for final determination.

Ending
Staff will mail public notices next week and present the ordinance and CUP process to Planning & Zoning on Feb. 3 and to council on Feb. 6. Councilmembers indicated interest in a follow-up that would identify preferred industrial areas for future data-center concentration.