Inside the Granbury data center revolt: recalls, lawsuits and Texas Rangers
Granbury, Texas, is facing a significant local revolt against Project Patriot, a proposed 2,000-acre data center and power plant. Opposition efforts include a recall petition against city officials, an Open Meetings Act lawsuit alleging transparency violations during the project's approval, and a complaint filed with the Texas Rangers concerning zoning notification. The city council had previously voted to rezone the land for industrial development, allowing the project to proceed.
Granbury, a lakeside city in rural Texas, has become a focal point of opposition against data center developments, specifically targeting Project Patriot, a proposed 2,000-acre power plant and data center campus on the former Knox Ranch. The project, developed by Dallas-based Bilateral Energy LLC, envisions five data center buildings and a power generation facility, which received an emissions permit from the Texas Commission on Environmental Quality.
The controversy began after the Granbury City Council annexed the land in January and subsequently rezoned it for industrial development in April, despite claims from city leaders that they had no prior knowledge of development plans for the site. Residents, represented by attorney Steven Dias, filed a lawsuit alleging the council violated the Texas Open Meetings Act by touring a Dallas data center before the annexation vote and by willfully evading public records requests. Internal communications suggest city officials may have attempted to avoid a quorum during these tours.
Further opposition includes a complaint filed with the Texas Rangers by Hood County resident Kellie Chewning, alleging zoning notification violations. Additionally, residents filed a petition to recall Mayor Jim Jarratt and several City Council members, following a vote of no confidence against City Manager Chris Coffman and City Attorney Jeremy SoRelle. Amidst these actions, the Granbury Planning and Zoning Commission recommended a citizen-drafted amendment requiring special use permits and 1,000-foot setbacks for data center developers, which the City Council will consider.
This local struggle reflects broader concerns across Texas, with Governor Greg Abbott calling for a prohibition on AI data centers in rural neighborhoods and the elimination of tax breaks for such facilities. He also directed state regulators to require large facilities to report water and electricity use. Parker County has already barred county-level tax incentives, and other cities are considering their own restrictions.