Eight data centers threaten to transform this small Texas county. Local officials say they have no power to stop them.
Hood County, Texas is facing a surge of data center development, with eight projects proposed across 7,600 acres. Local officials feel powerless to stop them due to state laws limiting county authority, despite strong community opposition over concerns about water, electricity, and the transformation of their rural community. The county has rejected two moratorium proposals but adopted stricter development regulations, leading to multiple lawsuits from developers.
Hood County, Texas, a rural community southwest of Fort Worth, is grappling with a proposed influx of eight data centers covering over 7,600 acres. Residents, organized as Protect the Paluxy Valley, are fiercely opposing the projects, citing concerns about immense water and electricity demands, potential noise, and the industrial transformation of their scenic area.
Despite widespread public outcry, Hood County officials, including Commissioners Kevin Andrews and Dave Eagle, lament their limited power to regulate development in unincorporated areas under Texas law, which grants more zoning authority to cities. Two attempts by the Hood County Commissioners Court to enact a moratorium on data center construction failed, partly due to warnings from State Senator Paul Bettencourt, a Houston Republican, who argued that counties lack the constitutional authority to issue such bans. The county has subsequently been sued multiple times by developers after rejecting concept plans or delaying votes on projects, prompting Commissioner Eagle to express frustration over the perceived influence of state lawmakers and developers.
In response to resident pressure, the Commissioners Court unanimously voted in March to amend development regulations, imposing stricter requirements for large industrial projects, including detailed disclosures on water and energy use, and shrinking the allowable building footprint. Following these new rules, commissioners revoked the previously approved concept plan for 'Fort Spunky,' a project by Pacifico Energy, after a local water utility denied its water request. This decision prompted a lawsuit from Pacifico Energy, seeking no less than $250,000 in damages and claiming the county lacked the legal authority for such a denial.
Other developers, including Sailfish Investors, responsible for the 'Comanche Circle' project, have also threatened legal action, arguing that counties cannot create new powers based on political opposition. As lawsuits remain pending, Hood County is seeking clarification from the Texas Attorney General regarding its authority under watershed protection laws and has asked Governor Greg Abbott to call a special legislative session to address statewide concerns about data center impacts. Nearby Hill County has, however, successfully enacted a one-year moratorium, though this also resulted in a $100 million lawsuit from a developer, highlighting the legal challenges faced by counties attempting to regulate the rapidly expanding data center industry in Texas.