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Wylie narrows data-center rules, requires special permits for larger server facilities
Summary
After hours of debate, Wylie City Council amended its zoning code to require special-use permits for data centers and related 'data mining' operations above a 5,000-square-foot threshold and to treat freestanding data-center businesses as uses needing council review.
Wylie — The City Council on June 23 approved changes to the city's zoning ordinance that tighten rules for larger data centers, require special-use permits for certain server operations and explicitly bring data- and crypto-mining activity under zoning review.
Council members said the aim was to preserve local utility capacity and avoid large, stand-alone server warehouses that place disproportionate demands on water and electric infrastructure. After lengthy debate over terminology and thresholds, council settled on a policy requiring developers to apply for a special- use permit for any facility or business whose server footprint exceeds 5,000 square feet; the new language also clarifies that freestanding data-center businesses and crypto- or data-mining operations must be reviewed by council.
Mayor Pro Tem Gina Maleche, who led the motion, said the changes strike a balance between letting local businesses use modest server space while reserving council review for large facilities. "If you want to run a legitimate business with a small server room to support your operation, fine," Maleche said. "If you want to build a stand-alone data-center business that could demand new substations or new water infrastructure, we want to see it and evaluate the impacts."
City staff described the amendment as building on a 2025 work session and a draft policy that previously allowed smaller server rooms by right but required special review for larger facilities. Planning staff recommended a square-footage threshold as an administrable standard; council members debated alternatives including lower thresholds or an outright ban on standalone centers. Councilmember Dave Strang said the goal was to avoid forcing everyday businesses into a costly permitting process while ensuring large, utility-heavy operations cannot proceed without public scrutiny.
The ordinance change also folds digital-mining uses and other high-utility server operations into the special-use framework so they cannot be sited without an explicit SUP. Staff indicated that any application still must meet utility and site-plan requirements and that site plans will return to Planning & Zoning for technical review.
Council took a final vote after clarifying language and instructions to staff; the amendment passed on the motion placed on the record during the June 23 meeting.
The council asked staff to return with administrative procedures for how the SUPs will be reviewed, including thresholds for required utility-demand analyses and guidance for developers on the information they must submit. The item will be codified in the city's zoning ordinance and published as required by ordinance.
