Westlake's proposed 88-acre data center moved closer to approval after a settlement ended months of litigation between developer Powerhouse Data Centers, the City of Keller and homeowners living near the site.
The Westlake Town Council will vote on the final development agreement at a special meeting at 5 p.m. Thursday, Nov. 12, according to a town announcement posted Friday, Nov. 6.
The Keller City Council unanimously approved the settlement terms on Nov. 5, the Dallas Morning News reported.
The deal does not block construction of the data center but establishes requirements intended to protect residents in nearby Keller neighborhoods, according to Keller officials.
No Westlake taxpayer dollars will be used to finance the agreement, the town said. Powerhouse will cover the full monetary arrangement, and Westlake's attorney's fees have been fully reimbursed.
What the settlement includes
Keller officials called the protections in the agreement "meaningful," including noise limits at residential property lines, an independent baseline noise study and quarterly noise monitoring for three years after the facility opens.
The deal also requires a 10-foot landscaping berm and drainage improvements at the data center site.
Powerhouse will contribute $1.5 million to a community benefit fund for Keller, $300,000 toward Keller Fire Rescue and $76,000 toward the city's attorney fees and consultant costs.
"Throughout this process, we have fiercely advocated for our residents — especially those living closest to the proposed data center site," Keller Mayor Ross McMullin said in a statement.
Westlake Mayor Kim Greaves said in a statement that the town's focus has been "making decisions in the best interests of Westlake and its residents while respecting our neighbors in Keller."
Who is a party to the deal
The settlement's parties are described differently across public statements. Westlake's announcement says the agreement involves Powerhouse, Keller and homeowners near the project. The Dallas Morning News listed the Town of Westlake as a party.
Jon Sasser, a Westlake spokesman, told the Fort Worth Star-Telegram the town is not a party to the settlement. Residents involved in the related litigation have also reached an agreement resolving their own legal claims, according to information from Keller.
Revenue projections
The project, located near U.S. Highway 377 in Westlake's commercial and industrial area, is expected to generate approximately $5 million annually in revenue for Westlake during its first 10 years.
That figure is estimated to increase to about $7 million annually afterward, according to town officials. Westlake said the revenue could fund town services, infrastructure and future priorities.
How the dispute started
The 1.1-million-square-foot data center complex was announced in late July. Keller residents in the Marshall Ridge and Lakes at Marshall Ridge neighborhoods said they learned about the campus planned for construction about 500 feet from some of their homes.
The closest Westlake home was a minimum of 1,200 yards away, according to the Dallas Morning News.
Residents packed meetings and called for the project to be moved. Within two weeks in August, Westlake's planning and zoning commission approved the plans, the Keller City Council voted unanimously to take legal action, and the Lakes at Marshall Ridge Homeowners Association filed a lawsuit.
A Tarrant County judge issued a temporary restraining order that forced Westlake's Town Council to table a vote on the project. Keller later joined the HOA's lawsuit.
The data center is allowed by right on the land along U.S. 377.
Thursday's vote covers the development agreement, a legally binding document governing infrastructure, architecture and landscaping requirements.
