Can your HOA stop a data center from being built nearby?
As Texas experiences a boom in data center construction, leading to resident concerns over water usage, homeowners are questioning if their HOAs can prevent data centers from being built nearby. Generally, HOAs can enforce restrictive covenants on properties within their operational boundaries, potentially blocking data center proposals in those areas.
Texas is on track to become a global leader in the data center industry by 2030, with companies like Microsoft and CyrusOne continuing to expand their presence. This rapid growth has sparked widespread backlash from residents across the state, who are primarily concerned about water usage and are urging local leaders to regulate the industry's expansion.
Amidst these developments, homeowners are curious about the power of Homeowners Associations (HOAs) to prevent data centers from being constructed in their vicinity. The article explains that HOAs, as private governing bodies, typically have the authority to enforce restrictive covenants on properties within their subdivisions. This means that if a data center developer proposes a project on land within an HOA's boundaries, the community would likely have the power to reject the proposal through its established rules.