Moving to Red Oak, TX in 2026: Data Centers, New Schools and What Buyers Should Know

Centers, New Schools and What Buyers Should Know

Red Oak sits on the northern edge of Ellis County along I-35E, about 20 miles south of Dallas. For years it was known as a quiet stop between Lancaster and Waxahachie. In 2026 it has been one of the most talked about cities in North Texas, mostly because of one topic: data centers.

If you are thinking about moving to Red Oak, TX, here is what is happening on the ground, what is still undecided, and what to look into before you buy.

Red Oak at a glance

Red Oak counted 14,222 residents in the 2020 census, and it has kept adding rooftops since. The city covers a little more than 15 square miles, and most of it is served by Red Oak ISD.

The draw is easy to understand. Buyers get direct I-35E access to Dallas, a short drive to Waxahachie and Midlothian, and a mix of established neighborhoods and new construction. Home shoppers who look in DeSoto, Lancaster, Glenn Heights and Ovilla often add Red Oak to the same search.

The data center debate

This is the story most people ask about, so it is worth laying out carefully.

Red Oak has seven operating or planned data center projects within city limits, according to The Dallas Morning News. Compass Datacenters has been in the city since 2019, when it bought 165 acres with plans for 16 buildings.

The newest and largest proposal is a second Compass campus on 830 acres between Goodloe Lane, FM 2377, Pierce Road and Pratt Road. Here is the timeline so far:

• April 27, 2026: The Planning and Zoning Commission voted 3-2 to recommend denying the rezoning.
• May 11, 2026: City Council approved the rezoning 4-1 after hours of public comment. NBC 5 reported that the chambers were filled beyond capacity.
• June 2026: Compass proposed a $15 million grant toward a new animal shelter in Ellis County. The Ellis County Press reports that the application for a county-level tax abatement was withdrawn that month.
• September 2026: Two residents sued the city, the mayor and five council members in Ellis County district court. The suit claims the rezoning ordinance was not lawfully adopted.

The Ellis County Press describes the campus as a $9.45 billion investment. If a court reverses the zoning, the project could not be built on that land. We had not found a ruling as of this writing, so check for updates.

What each side is saying

City Manager Todd Fuller told the council that data center revenue allows for better funded city services without raising taxes on residents, according to NBC 5. The argument is that these campuses pay large tax bills while adding few cars, students or service calls.

Residents who oppose the projects have raised concerns about noise, water use, traffic, strain on the power grid and the effect on nearby homes. The DeSoto Tribune reported that many feel the pace of industrial growth is changing the character of the community.

Both points can be true at once. What matters for a buyer is where a specific home sits in relation to these sites.

New schools and public projects

Red Oak ISD is building a new high school career and technical education facility on TX-342. A state filing lists the project at an estimated $75 million, with construction starting in April 2026 and finishing in late November 2027.

For buyers who want details on attendance zones, programs or campus plans, the district is the best source. We always suggest calling the district directly instead of relying on a listing description.

New homes and apartments

New construction is active on several fronts:

• Single-family communities. Builders are selling in communities such as The Oaks and Summerwood Estates, according to current new home listings.
• Apartments. Birchway Red Oak, on TX-342, is under construction, and a second community called Halogen Red Oak is registered with the state at roughly 391,000 square feet on Grand Meadow Boulevard.

More rental options can be useful if you are relocating and want to rent first while you learn the area.

What to check before you buy in Red Oak

1. Look at the zoning map. Ask the city's Development Services office what is approved or pending near any home you like. Industrial zoning a mile away is very different from industrial zoning across the road.
2. Visit at different times. Drive by on a weekday morning, a weeknight and a weekend. Listen as well as look.
3. Ask about special districts. Some newer neighborhoods carry a public improvement district (PID) assessment on top of regular property taxes. Request the disclosure early.
4. Compare the full tax rate. City, county, school district and any special district all appear on one bill. Two similar homes can have very different monthly payments.
5. Test the commute. I-35E is the main route north. Drive it at the time you would actually leave for work.
6. Follow the lawsuit. The outcome affects what gets built on 830 acres, and it could take time.

The bottom line

Red Oak offers Ellis County prices with a direct route to Dallas, plus new schools and new housing. It is also a city in the middle of a real debate about how it grows. Neither fact should scare a buyer off or rush one in. The right move is to know exactly what surrounds the home you are considering.

If you would like help comparing Red Oak with nearby cities like Waxahachie, Midlothian or Ovilla, Blue Mountain Realty Group is glad to walk you through it. Call or text Brando Villatoro at (214) 271-4733 or email Team@BlueMgroup.com.

Brando Villatoro, REALTOR®, Blue Mountain Realty Group, brokered by Real Broker, LLC. This post is for general information and is not legal, tax or financial advice.