Shane Shepard, Director of Economic Development, City of Lancaster

In an interview with Invest:, Shane Shepard, director of economic development for the City of Lancaster, discussed Lancaster’s push into advanced manufacturing, data centers, foreign direct investment, and long-term growth. Shepard highlighted the city’s ability to build value while preserving flexibility for future development. “We may end up being one of the wealthiest cities in Texas per capita,” Shepard said.

What have been the biggest developments for Lancaster’s economy over the past year?

The biggest thing happening in our community right now is data centers. We have almost 2 gigawatts of data centers coming in. They have purchased the property and secured ERCOT allocations. One of those centers has already opened. Two others have broken ground.

This has been driven largely by the electrical infrastructure already in place and our proximity to the Dallas-Fort Worth area. We want to make sure this growth is managed in a way that is acceptable to the public and does not place too much strain on our resources. We are addressing that through ordinances, resolutions, and strong relationships with the data center operators.

How are you managing concerns around data centers and their infrastructure needs?

There has been concern about issues such as noise, light pollution, water, and electricity. Noise and lighting can be regulated through ordinances, and we are exploring ways to verify that operators stay within the water-use commitments they have made.

Technology is also advancing quickly. From everything I am reading, improvements in microchips will reduce electricity and cooling requirements. It is fascinating to watch how quickly the industry is evolving.

What are your top priorities for Lancaster’s next phase of growth?

Although data centers are important, we are working to diversify. We have made a significant push into foreign direct investment through SelectUSA and the U.S. Department of Commerce, taking trade missions to different parts of the world.

Many international companies want to maintain operations in their home countries while expanding into the United States. Dallas, and Texas more broadly, are attractive because of logistics and proximity to the largest consumer economy in the world. The closer companies are to their customers, the lower their costs.

Over the past year, we have traveled to Europe and Asia to recruit companies. We continue working with embassies around the world, focusing particularly on advanced manufacturing.

What makes Lancaster stand out in global competition?

Our economic development team is small, but between the two of us, we have about 60 years of experience. That experience allows us to recognize market shifts before they happen.

We have built relationships with the governor’s office, business leaders, site selectors, and other partners around the world. Those connections help us anticipate opportunities and position Lancaster accordingly. Our city manager and development team are also well connected. Many communities have strong networks, but because of our size and the way we operate, we actively maintain those relationships on a continual basis.

What assets does Lancaster have to support this growing economy?

The Dallas-Fort Worth region has roughly 8.9 million people, giving companies access to a tremendous workforce. However, one thing that distinguishes our team is that if a company is not the right fit for Lancaster, we help them find another location in Texas.

We will conduct site searches, identify suitable locations, and introduce companies to our counterparts elsewhere in the state. During our international recruitment efforts, we connected with about 500 companies, and many were not the right fit for Lancaster. Rather than ending the conversation, we referred many of them to other economic development organizations or to the governor’s office.

We enjoy economic development, and while we want companies to locate here, we also want businesses and our partners across Texas to succeed.

What are you hearing from local businesses about workforce needs?

We really do not have a workforce issue. We have Dallas College, one of the largest community college systems in the country, and we have an excellent relationship with its leadership.

If employers need a specific skill set, Dallas College can quickly develop training programs and help upskill workers. People also move where the jobs are. If opportunities are attractive enough, workers will relocate for them. Because of that, I do not think workforce is a major challenge for us.

How are housing, amenities, and community investment supporting Lancaster’s economic development strategy?

We are big believers in downtowns because every city has only one authentic downtown. You can find the same national retailers in many places, but a downtown reflects the unique culture of its community.

We have invested in our downtown while recognizing that the Dallas-Fort Worth region is made up of many distinct cities, each with its own identity. People may live in one city and work in another, but together those communities create a diverse and connected metropolitan area.

What are your top priorities, and what will success look like for Lancaster over the next three to five years?

We are about 50% built out, and only about 200 to 300 acres of industrial land remain. Most of the remaining land is designated for residential development. Our city council wants the right development, even if that takes a generation or two, rather than pursuing the wrong development simply because the market currently demands it. Markets shift. 

Success means continuing to increase the city’s value because greater value allows us to provide better services. Ten years ago, our taxable value was about $1.5 billion. Today it is $8.2 billion, and that is before the impact of the new data centers. I believe those projects will substantially increase that figure while our population remains around 40,000 to 50,000 people.

We may end up being one of the wealthiest cities in Texas per capita. That would allow us to provide enhanced parks, services, and amenities without placing excessive strain on infrastructure. Success is continuing along this path, diversifying our economy, improving quality of life, and remaining competitive with our neighboring communities while continuing to cooperate with them.