Texas county sued over data center moratorium
Hill County, Texas, is facing a lawsuit from data center developer RCM Hill over a year-long moratorium on data center construction. RCM Hill claims the county commissioners enacted the moratorium despite knowing it might be illegal, causing the company to lose millions in investment. The developer is seeking to have the moratorium overturned and to be awarded over $100 million in damages.
The Hill County Commissioner's Court in Texas is currently addressing a lawsuit concerning a year-long moratorium on data center construction. The pause was implemented to allow the county more time to assess the potential impacts of data centers on local water resources, power grids, and general infrastructure.
Data center developer RCM Hill has filed the lawsuit, alleging that it invested millions of dollars in preparing a substantial data center project near Hillsborough, securing both land and funding, which are now unusable due to the moratorium. RCM Hill claims that county leaders were aware of the potential illegality of the moratorium before its approval. The lawsuit highlights statements made by commissioners in public meetings, where they acknowledged the lack of legal authority under state constitution or statute for the county to enact such a measure.
RCM Hill is petitioning a judge to nullify the moratorium, prevent the county from enforcing it, and award damages that could exceed $100 million.