Rural counties face hurdles over data centers
Rural counties in Texas are encountering significant legal obstacles when trying to regulate data center construction, as shown by Hill County's rescission of a moratorium after a $100 million lawsuit. Residents in Hood and Somervell counties are expressing concerns over potential increases in electricity bills and strain on water resources. In response, Governor Greg Abbott has directed the Public Utility Commission to ensure new data centers reduce residential electric bills and proposed new state laws to further regulate the industry.
Rural counties across Texas are encountering significant legal challenges when attempting to regulate or block data center construction, according to reports. Hill County, for instance, was forced to rescind a one-year moratorium on data center projects after a company, RCM Hill, filed a $100 million lawsuit. RCM Hill argued the county lacked the legal authority for the temporary ban, especially after having already invested over $80 million to secure more than 800 acres near Hillsboro for a large-scale data center. A land-use law professor at the University of Texas at Austin, Robert Paterson, noted that this costly legal challenge would likely deter other counties from attempting similar moratoriums.
Meanwhile, in Hood and Somervell counties, located southwest of Fort Worth, residents are actively expressing concerns at county commissioner meetings about at least nine proposed data center projects. Key worries include potential increases in electricity bills, strain on local water resources, and negative impacts on tourism.
In response to these statewide issues, Governor Greg Abbott has taken action. He has ordered the Public Utility Commission to implement measures ensuring that new data centers contribute to reducing residential electric bills. Furthermore, Governor Abbott has proposed that new laws be passed during the next legislative session to provide additional regulation for data centers across Texas.