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 health concerns.

The 3-2 vote by commissioners in Hill County, about 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 expressed concerns about how a proposed 300-acre development by Dallas-based developer Provident Data Centers in north Hillsboro could impact quality of life in the rural county because of noise pollution and consumption of large amounts of water and electricity.

“Data center managers have found a sweet spot in this state that has limited regulations, limited enforcement, limited code, and they’re coming faster than we can keep up,” Hill County Commissioner Jim Holcomb said. “I think it’s imperative… that we put the brakes on, that we realize what we’re facing and that we do some research, some studies.”

Holcomb, who voted for the pause, said the move “in no way constituted pressure to infringe on anyone’s right to do with their own property what they want to do with it.”

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

Representatives of data center developers pleaded with the county to reject the moratorium and said they were bringing money to the county for schools and roads.

Before the commissioners voted, County Attorney David Holmes warned them that they risked being sued by adopting a moratorium. “You’re damned if you do and damned if you don’t,” Holmes said.

The move comes amid a growing statewide battle over Texas’ data center boom, particularly in rural counties where projects are quickly moving to unincorporated and unzoned areas. In neighboring counties, residents are increasingly expressing frustration that projects are moving faster than public understanding or oversight.

Other Texas counties, including Hood and Hays counties, have considered similar moratoriums. In Hood County, where at least eight major data center projects are on hold, efforts to slow development have been met with resistance 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, saying counties have no constitutional or statutory authority to impose moratoriums on development and asking Paxton to investigate counties that have adopted one. Hood County commissioners rejected the pause.