Seventy-nine percent of Americans support U.S. leadership in artificial intelligence, but only 14 percent support \u201cdata centers in our community,\u201d according to research by JLL, Gallup and Reuters<\/a> published by JLL in August. JLL declined a request by the Report for an interview for this story.<\/p>\n Communities are experiencing the conundrum. In Fort Worth, property tax revenue makes up about 60% of the city\u2019s general fund budget, which pays for most basic city services. But residential revenue \u2014 63% of the tax base, compared to commercial \u2014 has turned soft in recent years because of protests and litigation, plus the Tarrant Appraisal District\u2019s policy of reappraising every two years. Fort Worth struggled to close a $94 million budget shortfall for 2027 as a result.<\/p>\n The city estimated this spring it received $83 million<\/a> in gross property tax revenue from four data centers in the city over the last five years. In 2024, Fort Worth\u2019s property tax revenue from data centers equaled the same revenue from 8,378 average-valued single family homes, the city estimated.<\/p>\n \u201cThat\u2019s a huge impact to a school district as well,\u201d Jesica McEachern, an assistant city manager, told council members<\/a> June 2 in presenting a report on proposed regulation.<\/p>\n By 2030, including the existing data centers and phases of planned facilities the city projects will launch by then, the proportion of property tax taken up by commercial property could move more toward half, driven by the hubs, she estimated<\/a>.\u00a0<\/p>\n It would take an estimated 22,718 average-valued single family homes in fiscal 2031 to generate the same projected property tax as data centers for that year, she added.<\/p>\n McEachern maintained the economic benefit of data centers isn\u2019t the \u201cdecision point\u201d on whether to accept them. City officials have debated water, power, noise, land use, neighborhood encroachment, setbacks\u00a0 and other questions.<\/p>\n Christian takes another view on the matter of decision points. Capital investment by investors in Texas artificial intelligence and data center projects now rivals investments in oil and gas, he noted. Some cities are now actively recruiting data center development.<\/p>\n \u201cNow, digest that total amount of money,\u201d Christian said. \u201cWhat that would do for future generations, for Texas, and for opportunities in half the state that\u2019s literally dying. Here\u2019s opportunities for families to have money, businesses, opportunities for the American dream to be expanded.\u201d<\/p>\n Looking ahead to what the Legislature may decide, Fort Worth City Council members in August unanimously approved the first move toward implementing a 90-day moratorium<\/a> on the construction of data centers.<\/p>\n Council members have struggled with the issue as throngs of residents have shown up at meetings to protest data center development.<\/p>\n \u201cData centers can add significantly to the tax base, even if they create fewer permanent jobs than some other uses,\u201d council member Michael Crain told the Report this week.<\/p>\n \u201cThat\u2019s why we need to evaluate each proposal on its merits \u2014 its long-term tax revenue, jobs, infrastructure demands and impact on nearby neighborhoods \u2014 and determine whether it\u2019s the right fit for our community.\u201d<\/p>\n Data center developers and operators have descended on Texas, which has now overtaken Virginia as the nation\u2019s top state for such projects, because of its business-friendly approach, low energy cost, faster permitting, incentives and abundance of land close to power infrastructure, Fort Worth city staff told council members at the June 2 meeting.<\/p>\n Such projects also have low impact on city services and infrastructure, the staff said. After the staff presented the property tax comparison of data centers to single-family homes at the meeting, council member Macy Hill asked for information on the costs of providing infrastructure to homes compared to data centers.<\/p>\n Whether to offer economic incentives, as the city often does in cases where major investment is being offered, has quickly become a flashpoint.<\/p>\n \u201cThese are not desirable land uses,\u201d council member Elizabeth Beck said at the meeting. \u201cI think what makes them desirable is their tax base. So by giving that up to get them I think is a ridiculous policy. If they\u2019re so needed, then they\u2019ll come. And if they\u2019re so needed and they need an incentive, they can go somewhere else.\u201d<\/p>\n Industry estimates on data center valuations for property tax purposes are significantly higher than for other potential commercial land uses. The valuation for a data center can, for example, range 7 to 10 times higher than that for a distribution center, according to industry estimates.<\/p>\n Demand for data center space is projected to remain strong, with leases being signed now for occupancy in 2028, according to the JLL research.<\/p>\n As a result, occupancy is expected to remain strong, with vacancy at an estimated 1% today, compared to 5% in 2018, according to JLL. Building developers and landlords are able to focus on the best risks in prospective tenants, according to JLL.<\/p>\n An estimated 59% of demand is coming from \u201chyperscalers\u201d like Google, major tech concerns with the capital and creditworthiness to get their proposed projects done, according to JLL.<\/p>\n Google in November 2025 announced it planned to invest $40 billion in Texas through 2027. That would go toward building cloud and AI infrastructure and data centers in Armstrong and Haskell counties, which are located in the Panhandle and West Texas.<\/p>\n Google said it was launching a $30 million \u201cenergy impact fund\u201d for various initiatives, \u201calong with more than 6,200 megawatts of new energy generation and capacity contracted to date through power purchase agreements with energy developers.\u201d<\/p>\n In Haskell County, Google said it planned to build \u201calongside a new solar and battery storage plant.\u201d<\/p>\n The company also said it planned to help develop the labor force through a partnership, training \u201cexisting electrical workers and more than 1,700 apprentices in Texas by 2030, more than doubling the projected pipeline of new electricians in the state.\u201d<\/p>\n \u201cOur latest investment in Texas is designed to not only support Texas\u2019 workforce and infrastructure, but to ensure the U.S. retains the technical backbone to lead the world in AI,\u201d the company said.<\/p>\n Supporters of data centers attribute the industry\u2019s problem with perception to \u201cbad actors.\u201d<\/p>\n \u201cThe bad actors have ignored the local population,\u201d Christian said. \u201cThat abuse has happened.\u201d<\/p>\n But, he added, \u201calmost every situation where these data centers have gone in, you see the economies benefit, the tax bases benefit,\u201d he said.<\/p>\n \u201cThe local people have their local taxes able to go down. You see more electricity generated in many of these facilities that they bring in their own generation, and there\u2019s more positives than negatives, and we should learn from the negatives and learn how they did the positives and just implement them.\u201d<\/p>\n Scott Nishimura is senior editor for local government accountability at the Fort Worth Report. Reach him at scott.nishimura@fortworthreport.org<\/a>.<\/p>\n![\"Tarrant](\"https:\/\/fortworthreport.org\/wp-content\/uploads\/2026\/04\/iStock-1755445620-1-1024x576.jpg\")
In 2024, Fort Worth\u2019s property tax revenue from data centers equaled the same revenue from 8,378 average-valued single family homes, the city estimated. (Courtesy | Greater Fort Worth Association of Realtors)<\/p>\n![\"(Christine](\"https:\/\/fortworthreport.org\/wp-content\/uploads\/2026\/08\/20260811_Lopez-DataCenters-10-1024x683.jpg\")
Councilmembers Michael Crain, left, and Charlie Lauersdorf listen to speakers during a City Council meeting Aug. 11, 2026, in Fort Worth. (Christine Vo | Fort Worth Report)<\/p>\n![\"(Maria](\"https:\/\/fortworthreport.org\/wp-content\/uploads\/2026\/05\/0512-WorkSession-MC-16-1024x683.jpg\")
Fort Worth council member Macy Hill during a FY 2027 budget work session meeting on May 12, 2026. (Maria Crane | Fort Worth Report\/CatchLight Local\/Report for America)<\/p>\n![\"(Christine](\"https:\/\/fortworthreport.org\/wp-content\/uploads\/2026\/08\/20260811_Lopez-DataCenters-12-1024x682.jpg\")
Councilmember Elizabeth Beck speaks during a City Council meeting Aug. 11, 2026, in Fort Worth. (Christine Vo | Fort Worth Report)<\/p>\n![\"\"](\"https:\/\/fortworthreport.org\/wp-content\/uploads\/2026\/10\/GoogleInnovation-1-1024x583.webp\")
Congressman Jake Ellzey, Deputy Energy Secretary James Danly, Gov. Greg Abbott, Google CEO Sundar Pichai, and Google senior director Amanda Peterson Corio meet in Midlothian in 2025 to announce Google’s Texas investment plans. (Courtesy | Google)<\/p>\n![\"\"](\"https:\/\/fortworthreport.org\/wp-content\/uploads\/2022\/02\/Christian20Wayne20TRC20BD20TT-1024x686.jpg\")
Supporters of data centers attribute the industry\u2019s problem with perception to \u201cbad actors.\u201d They “have ignored the local population,\u201d Texas Railroad Commissioner Wayne Christian (pictured here in 2022) said. \u201cThat abuse has happened.\u201d (Fort Worth Report archive photo)<\/p>\n