A rural county in North Texas, which was the first in the state to implement a moratorium on data centers, has reversed its decision following a lawsuit from a developer seeking $100 million in damages.
The Hill County Commissioners voted unanimously to lift the moratorium and introduced a new checklist for data center developers, just two weeks after initially instituting the temporary halt for up to one year.
County Judge Shane Brassell expressed his belief that the moratorium served its purpose, stating that the newly adopted checklist is more legally sound. “Ultimately, we would have loved to have just been able to stop every project and everything, and that’s not what the moratorium did,” he said. “But it did help us see some projects that may not have been the most desirable leave the county.”
Brassell noted that the moratorium provided valuable time to develop the checklist and gain insights into other projects that had previously gone unnoticed.
This decision aligns with a growing trend in Texas, where similar conflicts arise, particularly in unincorporated regions. Reports indicate that nearly half of all planned data centers in Texas are set to be located in such areas, an increase from the current 12%. Unlike cities, counties generally lack the authority to obstruct development.
RCM Hill, LLC, filed a lawsuit against the county last week, claiming that it has contracts to acquire over 800 acres of land for a data center project valued at more than $80 million. Legal representatives did not provide immediate comments regarding the case.
The lawsuit, submitted on May 27 in federal court in Austin, contends that the county overstepped its legal bounds with the moratorium, which jeopardized the company’s ability to comply with state electricity regulators’ requirements for interconnection.
It remains uncertain whether RCM Hill will continue its legal action in light of the new checklist. Brassell stated that the checklist is backed by various state statutes.
