Texas county pauses data center construction in rural areas for a year

A rural Texas county on Tuesday approved a one-year pause on the construction of new data centers in unincorporated areas, citing public safety and public health concerns.

The 3-2 vote by county commissioners in Hill County, roughly 55 miles south of Fort Worth, appears to be the first by a Texas county to issue a moratorium on the rapidly expanding industry.

Residents and local officials had aired concerns about how a proposed 300-acre development by the Dallas-based developer, Provident Data Centers in north Hillsboro could impact the quality of life in the rural county through noise pollution and consuming large amounts of water and electricity.

“The data center folks have found a sweet spot in the state that has limited regulations, limited enforcement, limited code, and they’re coming faster than we can keep up with,” said Hill County Commissioner Jim Holcomb. “I think it’s imperative … that we tap the brakes and we get our arms around what we’re faced with and do the research, do the studies.”

Holcomb, who voted for the pause, said the move was in “no way, shape or form a push to impair anyone’s right to do with their own property what they want to do with it.”

County Judge Shane Brassell said the temporary pause will allow officials time to study the effects of data centers before projects move forward.

Representatives of data center developers pleaded with the county to reject the moratorium and said they are bringing money to the county for schools and roads. Holcomb said that many developers called him the night before, as late as 10 p.m., asking him to vote down the moratorium.

It’s not clear how many data centers have been proposed for Hill County. Brassell said he knows at least eight are in the works because he hears through word of mouth about farmers who have sold their land to data center developers, but he added that developers aren’t required to disclose their plans to the county.

Before commissioners voted, County Attorney David Holmes cautioned them that they risk being sued by passing a moratorium. “You’re damned if you and damned if you don’t,” Holmes said.

The decision comes amid a growing statewide battle over Texas’ data center boom, particularly in rural counties where projects are rapidly moving into unincorporated areas with no zoning. In neighboring counties, residents have increasingly voiced frustration that projects are advancing faster than public understanding or oversight.

Other Texas counties, including Hood and Hays counties, have explored similar moratoriums. In Hood County, where at least eight large data center projects are pending, efforts to slow development drew pushback from state leaders.

Houston-area state Sen. Paul Bettencourt
sent a letter to Texas Attorney General Ken Paxton on the day of the Hood County vote, claiming that counties have no constitutional or statutory authority to impose development moratoriums and asking Paxton to investigate counties that passed one. Hood County commissioners rejected the pause.

Hill County moved ahead despite the risks, said Brassell, the county judge. Brassell and at least two commissioners expect the county to face lawsuits from data center developers and perhaps the state as well.

Brassel said the court still felt a responsibility to put guardrails in place during what he called a “land rush” — even if it meant being the first county to test the limits of Texas law. He said he has talked to many county judges and they were waiting for someone to take this step first.

“Our hope and prayer was that (state leaders) take that vote as not a sign of defiance of the law, but as a plea for help to get some regulations in place to help protect our citizens,” said Holcomb, the county commissioner.

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This story was originally published by The Texas Tribune and distributed through a partnership with The Associated Press.