Texas county pauses data center construction in rural areas for a year

Hill County commissioners in rural Texas approved a one-year moratorium on new data center construction in unincorporated areas, a decision reached by a 3-2 vote. This marks the first time a Texas county has issued such a pause on the rapidly expanding industry, driven by public safety and public health concerns. The action followed resident and local official concerns about a proposed 300-acre development by Dallas-based Provident Data Centers in north Hillsboro, citing potential impacts on quality of life through noise pollution and high consumption of water and electricity. Hill County Commissioner Jim Holcomb, who voted for the pause, emphasized the need for officials to study the effects of data centers given the limited regulations in rural areas. County Judge Shane Brassell affirmed the temporary pause would provide time for research before projects proceed. Data center developers urged the county to reject the moratorium, highlighting financial benefits to the county for schools and roads. County Attorney David Holmes cautioned commissioners about the risk of lawsuits, noting, “You’re damned if you and damned if you don’t.” The moratorium decision is part of a broader statewide debate in Texas regarding data center proliferation, particularly in rural counties lacking zoning regulations. Other counties, including Hood and Hays, have explored similar pauses. State Sen. Paul Bettencourt of the Houston area challenged such moratoriums, sending a letter to Attorney General Ken Paxton arguing that counties lack constitutional or statutory authority to impose development moratoriums. Hood County commissioners ultimately rejected their proposed pause.