A proposed 1.1 million-square-foot data center on about 88 acres in Westlake, along U.S. Highway 377 near the Keller line, has turned into the area's most closely watched land use fight of 2026. The site is already zoned to allow it, Keller neighbors have sued, and a court hearing was set for Oct. 23. Here is what is known, and what it means for homeowners on both sides of the town line.
What is being proposed, and where?
The project, known as the Circle T Data Center, would sit on roughly 88 acres inside Westlake's town limits along U.S. 377, near Hillwood's Circle T Ranch development. CandysDirt reported on Aug. 19, 2026, that the developer is PowerHouse Data Centers and that the plan calls for a four-building campus of about 1.1 million square feet. A state filing summarized on Oct. 10 lists preliminary cost estimates of $83 million for the main data center building, $45 million for an auxiliary water building and $15 million for an access control building.
Community Impact reported on Aug. 5 that the building footprint would be 506 feet from the property line next to Llano Court in Keller's Marshall Ridge neighborhood. The Town of Westlake says the nearest Westlake home is about two-thirds of a mile away.
Why can't Westlake simply say no?
According to the town, the parcel has carried commercial and industrial zoning for decades, and data centers are a permitted use under Planned Development District 3-8. Mayor Kim Greaves told KERA that the council lacks authority to stop the project because the land is privately owned and zoned for that use by right. The town's position is that its leverage lies in a development agreement that sets standards for noise, water, power and infrastructure.
What has happened so far?
The timeline has moved quickly since summer:
- Aug. 4, 2026: Westlake's Planning and Zoning Commission approved the site plan with three conditions, after nearly two hours of public comment.
- Aug. 17: A Tarrant County judge issued a temporary restraining order about an hour before the Town Council was set to vote on the development agreement.
- Aug. 18: The Keller City Council voted unanimously to pursue legal action, later joining the case as an intervenor.
- Sept. 25: FOX 4 reported the restraining order expired without extension while the judge reviewed a large volume of documents.
- Oct. 23: A hearing was scheduled in the 342nd District Court on whether the plaintiffs can continue their lawsuit and on requests for further restrictions.
The plaintiffs are The Lakes at Marshall Ridge Homeowners Association and two individuals. As of the most recent reporting we could verify, the town had not yet voted on the development agreement and no town construction permits had been issued.
What protections are in the plan?
The Planning and Zoning approval added conditions that the town says are now part of the developer agreement:
- Sound barrier walls at least 8 feet tall along the southern boundary.
- Acoustic treatments around cooling towers, generators and similar equipment.
- Continuous screening with evergreen and hardwood trees along the southern property line.
The town's project page adds that the campus must meet local noise limits of 56 decibels during the day and 49 decibels at night, and that about 500 new perimeter trees are planned. Community Impact reported a 220-foot landscape buffer on the south side and average water demand of about 165,000 gallons a day, with peaks up to 1.5 million gallons. The town says Oncor is building a 350-megawatt substation near the site and that the tenant will replenish the cooling water it uses.
What does Westlake gain financially?
The town estimates the project would bring about $5 million a year for 10 years, then about $7 million a year, which it describes as a 14% increase in annual revenue. Those are the town's projections rather than independent estimates. The draft agreement also included a $914,000 contribution toward a nearby Westlake pump station, according to KERA.
Why are Keller residents opposed?
Opponents have cited noise, light, water and electricity use, health and quality-of-life concerns, and property values. FOX 4 reported that Keller residents also say they did not receive proper notice before the site plan came forward. The issue has drawn statewide attention, with FOX 4 noting that Gov. Greg Abbott has proposed resource audits before new data center permits.
What does this mean for homeowners in Westlake and Keller?
This is the question our agents at The Agency Dallas hear most often from clients near the town line. We do not think anyone can responsibly predict a price effect before the project's final form is known. What we can say:
- Disclosure matters. Sellers near the site in Keller should expect buyers to ask about the project. Being direct about what is proposed, and what is still undecided, builds trust.
- Distance and orientation vary. Homes that back to the southern buffer are in a different position than homes several streets away. Buyers should look at site plans, not headlines.
- Westlake's fiscal picture is part of the story. The town argues the revenue reduces reliance on residential taxes. Westlake residents saw an estimated $442 decrease in the average tax bill this year, according to Northeast News, and the town says a data center would add to that cushion.
- The outcome is still pending. Court rulings, the development agreement vote and permitting all remain ahead.
Our overview of the area at Southlake and Westlake covers Westlake's neighborhoods and how they relate to the commercial corridors along State Highways 114 and 170 and U.S. 377.
Westlake has long balanced corporate campuses with large-lot residential neighborhoods. This project tests that balance in a new way, and it is drawing in a neighboring city as well. Our agents at The Agency Dallas who work Westlake and Keller will continue following the court record and council agendas as they develop.
Frequently asked questions
Where is the proposed Westlake data center?
The Circle T Data Center would sit on about 88 acres along U.S. Highway 377 inside Westlake's town limits, at the northern edge of Keller and near Hillwood's Circle T Ranch development. Reporting places the building footprint about 506 feet from the property line next to homes in Keller's Marshall Ridge neighborhood, while the nearest Westlake home is much farther away.
Has the data center been approved?
Westlake's Planning and Zoning Commission approved the site plan on Aug. 4, 2026, and the town says the use is allowed by right under existing zoning. However, the Town Council had not voted on the development agreement as of the latest reporting, and no town construction permits had been issued. A lawsuit by Keller residents is ongoing in Tarrant County court.
Who is suing over the project?
The Lakes at Marshall Ridge Homeowners Association and two individuals filed suit against the Town of Westlake, and the City of Keller joined later as an intervenor. A judge granted a temporary restraining order in August that later expired. A hearing on whether the plaintiffs can continue the case was set for Oct. 23, 2026.
How much water and power would it use?
Community Impact reported average water demand of about 165,000 gallons a day, with peaks near 1.5 million gallons, or about 54 million gallons a year. The town says on-site treatment and reuse would cut annual use and that the tenant will replenish cooling water. Oncor is building a 350-megawatt substation, with most capacity serving the data center.
Will the data center affect Keller home values?
No one can say yet with confidence, because the final design, buffers and timing are still being decided through the courts and council. Effects, if any, would likely depend on how close a home sits to the southern boundary. Buyers and sellers near the site should review the actual site plan and stay current on the legal process.
Sources
- CandysDirt, Keller authorizes legal action against Westlake over data center project (Aug. 19, 2026)
- Community Impact, Westlake planning and zoning commission approves data center site plan near Keller (Aug. 5, 2026)
- KERA News, Westlake data center agreement temporarily blocked by Tarrant County court
- FOX 4, Westlake data center temporary restraining order expires (Sept. 25, 2026)
- TCU 360, Westlake's Circle T data center hearing set for Oct. 23 (Oct. 23, 2026)
- iRecruit, PowerHouse plans $83M Westlake data center (Oct. 10, 2026)
- Town of Westlake, The Truth About Westlake's Data Center (Aug. 6, 2026)
- Town of Westlake, Westlake's New Development
- Northeast News, Westlake Town Council adopts 2026-27 budget (Sept. 16, 2026)
