Keller, Westlake reach agreement over proposed data center lawsuit

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Published November 5, 2026 9:19 PM CST

The Brief

    • The City of Keller says it has reached an agreement with Westlake in a lawsuit over a proposed data center on the border of the two cities.
    • Keller will be allowed to enforce noise limits for the proposed center, and the settlement includes landscaping requirements and emission controls.
    • Keller residents had expressed concerns about the data center, citing environmental concerns and property values.

KELLER, Texas - Keller and Westlake have settled a debate over a proposed data center on the border of the two cities.

What's New:

The City of Keller says it has reached an agreement with Westlake and Circle T Owner LP in a lawsuit over a proposed date center on the Keller/Westlake border.

Keller says the agreement will allow the city to enforce noise limits, and will create quarterly noise monitoring for the first three years of the data center's operations.

The agreement also includes landscaping requirements, emissions controls, and a contribution to Keller Fire-Rescue.

Westlake Data Center Debate

The backstory:

Plans for a 1.1 million-square-foot data center in Westlake near its border with Keller have been at the center of debate for months.

Keller residents said they were not given proper notice about the development, which would be near Keller's Marshall Ridge neighborhood. 

Westlake data center proposal sparks concerns from Keller residents

Keller residents who live along the border with Westlake are raising concerns about a proposed data center planned in neighboring Westlake, saying the project would be located just steps from their homes.

They are also worried about the environmental impacts, along with their own quality of life, including their health and property values.

The City of Keller filed for a temporary injunction to halt any further development. That injunction expired in late September.

Big picture view:

Data centers were a hot political 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.

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

What's next:

Keller says it will work with Hinojosa on statewide discussions surrounding data center regulation.

The Source: Information in this story comes from the City of Keller and previous FOX 4 reporting.

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