After a lengthy session filled with testimonies from numerous residents, Hood County commissioners rejected a proposed temporary halt on new industrial developments, including data centers. This decision followed a letter from a state senator warning of potential legal repercussions, stating that the county lacked the authority to impose moratoriums.
The contentious 3–2 vote occurs amid a surge in data center proposals across Texas, driven by the AI industry’s rapid growth and strong support from prominent Republican figures at both state and national levels. Residents and experts have expressed concerns regarding the state’s already stressed water resources, particularly as Hood County has at least four data centers already proposed. Reports indicate that residents received notice just the night before the vote about two additional facilities being planned.
Data centers have emerged as a critical issue in the context of Texas’ impending water crisis. Local residents argue that the county does not possess adequate water resources to sustain multiple facilities along with their accompanying power plants. The state lacks a comprehensive system for monitoring water use by the industry, resulting in inconsistent reporting and tracking of water consumption.
The debate became increasingly charged over the question of whether counties hold the legal authority to pause development. One commissioner advocated for the county’s responsibility to safeguard public health by preventing unchecked data center expansion, while others contended that state law regarding such actions is unclear.
After eight hours of discussion, the county attorney presented a letter from state Senator Paul Bettencourt, a Republican from Houston and chair of the Senate Committee on Local Government. The letter cautioned that counties lack constitutional or statutory authority to enforce development moratoriums, prompting Bettencourt to call on the state to intervene should Hood County pursue such measures.
Bettencourt emphasized that county commissioners “cannot claim any powers unless it is expressly conferred by the Constitution or statute,” referencing House Bill 2559, sponsored by Republican Jared Patterson. He subsequently requested an investigation into any county initiatives aimed at implementing similar pauses.
The revelation of this letter incited frustration among certain commissioners. “I can’t tell you how disappointed I am,” expressed Commissioner Dave Eagle. “You’ve got to wonder what kind of backroom dealings were happening. … This is just a threat letter to us.”
The proposed moratorium would have temporarily halted new data center developments for six months, allowing county officials to study potential impacts on water resources, energy demands, air quality, wildlife, and the overall quality of life for residents. If enacted, it would have been one of the first such measures in Texas, according to environmental advocacy groups.
Advocates argued that a pause would have given local leaders crucial time to evaluate the rapidly growing industry. Data centers require county approval for zoning and infrastructure developments.
“Hood County is facing the potential buildout of four data centers,” said Rita Beving, an organizer with the environmental watchdog group Public Citizen. “Failing to pass a moratorium will trigger the construction of several natural gas plants alongside these projects. The Hood County region may not have the water required to support these developments, and the county commissioners are putting vital resources at risk.”
Beving further noted that the timing of the vote raised concerns, particularly given the community’s existing noise issues from nearby cryptocurrency mining operations, which residents attribute to health problems.
Opposition to data centers is mounting across the nation, with communities in at least 14 states implementing temporary pauses on new developments. Lawmakers in New York, Georgia, and other states have proposed legislation aimed at slowing down the growth of these facilities.
Last year, over 200 environmental organizations called for a national moratorium, a movement later supported by Senator Bernie Sanders of Vermont. “Communities are witnessing how data center development can adversely affect their air quality due to backup generators running on diesel. Data centers also pose significant threats to water supplies, a critical concern in Texas,” stated Jim Walsh, policy director for the nonprofit Food & Water Watch, one of the groups advocating for the national moratorium.
Dan Diorio, vice president of state policy for the Data Center Coalition, which represents the data center industry, pointed out that data centers have provided over 363,000 jobs in Texas and generated $3.2 billion in state and local tax revenue in 2023. “Data centers are dedicated to being responsible and responsive neighbors in the communities where they operate, and we will continue to engage with residents, local communities, and policymakers to enable the responsible development of this essential industry,” he asserted.
In Hood County, the potential moratorium could have impacted four projects currently in the early planning stages, including the proposed Comanche Circle development.
The Comanche Circle project, proposed by Sailfish Development, aims to cover approximately 2,600 acres near the small town of Tolar, which has a population of about 1,300. Plans for the project include nine data center campuses with a combined capacity of up to five gigawatts, situated near Vistra’s Comanche Peak nuclear plant. This development would exceed the size of Glen Rose and be comparable to the Joint Reserve Base in Fort Worth.
Residents have expressed concerns that the site lies within a recharge zone for the Upper Trinity Aquifer and within the watershed of the Paluxy River, which feeds into Dinosaur Valley State Park. They caution that the project could consume as much as 1 million gallons of water daily at full capacity, exacerbate air quality issues, pave over more than 1,000 acres, and increase noise, light, and traffic in the area.
