Denton City Council approves permit for new AI and crypto data center

Qumulus AI, a company that specializes in high-performance computing systems for artificial intelligence development, received a specific use permit to build a modular data center near Western Boulevard and Jim Christal Road following approval from Denton City Council at a Jan. 13 meeting.

In a nutshell

The data center will provide computing services for cryptocurrency miners and AI development, per city documents.

The facility will operate near the RD Wells substation on land leased by the city at a rate of about $20,000 per year for 10 years, according to a lease and power purchase agreement approved at an Aug. 6 council meeting in 2024.

The data center will use a closed-loop cooling system that uses non-conductive fluid and will not require any water, Qumulus Director of Engineering Spencer Smith said at a Dec. 17 Planning and Zoning Commission meeting.

Some background

Denton Municipal Electric released a request for proposals for a data center near the RD Wells substation in 2022, according to a presentation at a February 2024 council work session.

The Denton area is becoming a major hub for AI infrastructure. For example, AI companies Core Scientific and CoreWeave announced a $1.2 billion expansion in Denton in February 2025.