The Westlake City Council has unanimously approved construction of a 1.1 million-square-foot data center near the city's border with Keller, closing a chapter on months of debate and a protracted legal battle between the two North Texas communities.

Council Vote Ends Months of Dispute

The approval came during the council's meeting on Thursday, November 12, when members voted without dissent on a measure allowing the project to proceed.

The site of the proposed complex, near the boundary between Westlake and Keller, has been the focal point of the dispute. Keller residents who live along that border had raised objections to the development, saying it would sit just steps from their homes and specifically near Keller's Marshall Ridge neighborhood.

Residents Cite Transparency Concerns

At Thursday's council meeting, some speakers accused Westlake's leaders of not being transparent enough during the process leading up to the approval. Keller residents had previously said they were not given proper notice about the development planned next to their neighborhood.

Westlake leaders, for their part, have defended the project as part of the cost of growth. "Yes, residents may bear slightly higher electricity costs, but we're going to keep costs in other ways because of the additional revenue," a city leader said, acknowledging that residents could see some increase in electricity costs while pointing to offsetting revenue benefits for the city.

Keller's Legal Challenge and its Expiration

The City of Keller had sought to intervene in the dispute through the courts, filing for a temporary injunction to halt any further development of the project. That injunction ultimately expired in late September, leaving the path open for Westlake to continue moving the project forward.

The legal fight formally reached a resolution earlier in November. On November 5, Keller and Westlake announced they had reached an agreement ending their court battle over the data center.

Terms of the Agreement Between the Two Cities

According to Keller, the agreement gives the city the ability to enforce noise limits at the site and establishes quarterly noise monitoring during the first three years of the data center's operations. Noise had been among the primary concerns voiced by Keller residents, alongside worries about potential environmental damage from the facility.

Beyond noise provisions, the settlement also includes landscaping requirements and emissions controls. Additionally, the agreement calls for a contribution to Keller Fire Rescue, providing support to the city's emergency services.

A Data Center Debate Playing Out Across Texas

The dispute between the two cities unfolded against a broader political backdrop in which data centers became a hot topic during the midterm elections. Gov. Greg Abbott shifted course after initially welcoming data centers to Texas, pushing to slow development by requiring resource audits before new permits are issued.

On the other side of the political spectrum, Gina Hinojosa, the Democratic challenger who unseated Abbott, has called for an immediate moratorium on data centers until the Texas Legislature can meet.

The debate over the facilities' impact on resources and nearby communities has drawn attention well beyond the Westlake-Keller border, with other Texas municipalities also weighing their stances. In Fort Worth, leaders have considered a moratorium on data center projects, reflecting the growing scrutiny of such developments across the region.

What Comes Next

With the council's approval in hand and the intercity agreement in place, construction on the 1.1 million-square-foot facility can proceed. Keller says it will work with Hinojosa on statewide discussions surrounding data center regulation, signaling that the city intends to stay engaged on the policy questions raised by the project even as the local dispute has been settled.

The quarterly noise monitoring provisions will take effect during the first three years of the data center's operations, and the landscaping requirements, emissions controls, and contribution to Keller Fire-Rescue will be implemented under the terms of the November 5 agreement.

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