Hood County, Texas, grapples with data center growth, failed moratoriums
Hood County, Texas, is grappling with a surge of proposed data centers, leading to significant local opposition over concerns about water and electricity demands. County commissioners' attempts to enact a moratorium have been rejected, and developers have filed multiple lawsuits against the county for denying or delaying project plans, despite the county adopting stricter development regulations.
Hood County, Texas, a rural community southwest of Fort Worth, is experiencing a rapid surge in data center development, with eight projects spanning over 7,600 acres proposed. Local residents, including Brian and Laura Crawford who formed the non-profit Protect the Paluxy Valley, are fiercely opposing these developments, citing concerns about massive water and electricity consumption, potential strain on the state's power grid, and the industrial transformation of their scenic area.
Despite widespread community opposition and efforts by Hood County Commissioners Kevin Andrews, Dave Eagle, and Nannette Samuelson, two attempts to pass a moratorium on data center construction failed. This was influenced by warnings from state lawmaker Senator Paul Bettencourt, who argued that Texas counties lack the constitutional authority to issue building moratoriums and threatened legal action from the Attorney General's office. Commissioners expressed frustration over their limited regulatory powers compared to city officials.
In response to public outcry and a perceived lack of information from developers, the Hood County Commissioners did amend their development regulations in March, adding stricter requirements for large industrial projects, including detailed disclosures on water sourcing, energy use, and environmental impacts. This led to the revocation of Pacifico Energy's previously approved "Fort Spunky" concept plan and the tabling of two other projects, "Project Red" and "Project Yellow." Consequently, Hood County has been hit with multiple lawsuits from developers, including Pacifico Energy, alleging unlawful denial and delay of projects and seeking significant monetary damages.
This situation in Hood County mirrors a broader trend in Texas where developers are increasingly choosing rural, unincorporated areas due to fewer regulations. While some state officials have expressed interest in expanding county regulatory authority, change is not expected until the next legislative session in 2027. Nearby Hill County, however, successfully approved a one-year moratorium on data center construction despite similar legal risks and has also faced a $100 million lawsuit from a developer, highlighting the contentious legal landscape for counties seeking to regulate these developments.