Rural North Texas counties trying to regulate data centers face legal threats
Rural North Texas counties, including Hood and Somervell, are facing legal challenges from unnamed data center developers as they attempt to regulate or slow down new data center construction. Hood County commissioners approved a project after a legal threat, and Hill County rescinded a moratorium following a $100 million lawsuit. Residents are concerned about electricity costs, water usage, and environmental impacts, while state officials are beginning to address the issue.
Rural counties in North Texas are struggling to regulate a surge in data center development, often facing legal threats or lawsuits from developers. In Hood County, commissioners approved the Comanche Circle data center project without conditions after the developer threatened legal action, leading to a tense public meeting with opposing residents. Joanne Carcamo, co-founder of Protect the Paluxy, voiced concerns about potential impacts on electricity bills, water resources, and tourism, particularly for Dinosaur Valley State Park.
Developers are increasingly using legal challenges to advance projects. Hill County commissioners, for instance, rescinded a moratorium on data center construction after a company sued for $100 million. Robert Paterson, a land use law professor at the University of Texas at Austin, highlighted the limited regulatory options for counties in Texas's permissive environment, stating that legal action effectively deters future moratoriums.
Dan Diorio of the Data Center Coalition argues that such regulatory uncertainty harms significant investments crucial for digital infrastructure. However, residents persist in advocating for regulations, with Somervell County leaders passing a resolution opposing new data centers until state guidance is provided. Rita Beving of Public Citizen views Hill County's subsequent adoption of development rules for data centers as a positive step, emphasizing the need for state lawmakers to act.
State officials are now responding to public pressure. Governor Greg Abbott recently directed public utilities to prevent data center-related electricity costs from being passed to residents and pledged legislative action. Additionally, the Republican Party of Texas announced that regulating large-scale data centers would be a priority in the upcoming legislative session.