Small-town Texas rebels against data centers in growing backlash
Residents in Granbury, Texas, are actively opposing data center developments like Project Patriot, citing concerns over noise, air quality, and electricity costs. Despite local complaints, the Granbury City Council approved rezoning for Project Patriot, leading to lawsuits against the city and a Bitcoin mining facility. Meanwhile, neighboring Hill County has enacted a one-year moratorium on such projects.
Granbury, Texas, a small town about 70 miles from Dallas, is experiencing significant local opposition to data center developments, exemplified by residents' public pleas against projects like "Project Patriot." Despite community complaints about noise, air quality, and potential increases in electricity bills, the Granbury City Council voted to rezone 2,100 acres for Project Patriot. This resistance occurs even as Texas, championed by Governor Greg Abbott as an "epicenter of AI development," offers substantial incentives, including an estimated $3 billion in sales tax exemptions over the next two years.
Local efforts to impose moratoriums on data center development have seen mixed results; Hood County residents have failed twice, but lawmakers in nearby Hill County approved a one-year freeze. The legality of such local bans is contentious, with Hood County Attorney Matthew Mills anticipating legal challenges due to Texas law's limited authority for local governments over development. Consequently, residents have initiated legal action, including lawsuits against MARA Holdings Inc. for noise pollution from a Bitcoin mining facility and against the City of Granbury for the annexation and zoning of the Project Patriot land, alleging city officials misled residents.
State-level officials, including State Senator Paul Bettencourt, have engaged Texas Attorney General Ken Paxton regarding county moratoriums, but Paxton has maintained a "strategic silence." This is perceived by some residents, like Matt Long, as an attempt by the state to allow as many projects as possible before making a definitive ruling on the issue. This local pushback is not isolated to Texas; similar opposition has led to a company backed by Brookfield Asset Management abandoning an 800-acre campus in Virginia, and other projects are facing challenges in Pennsylvania and Florida, highlighting a nationwide trend where grassroots resistance can significantly impact data center development.