Hays County revives proposal to pause data center construction
Hays County leaders are set to vote on a proposed 180-day moratorium on water-intensive developments, including data centers, in unincorporated areas. The proposal, which follows a previously tabled moratorium due to lawsuit concerns, also seeks greater authority from the Texas Legislature to regulate data center development. This action comes amid rising concerns about water and power demand, as well as recent community opposition leading to a data center project rejection in San Marcos.
Hays County, Texas, is poised to consider a renewed proposal for a 180-day moratorium on approvals for water-intensive large-scale industrial projects, including data centers, within its unincorporated areas. The Hays County Commissioners Court is scheduled to vote on the measure, which also includes a request to the Texas Legislature for increased authority over data center development. This action reflects growing regional concerns about the significant water and power demands of such facilities.
The current resolution follows an earlier attempt in February to enact a 30-day moratorium, which was tabled due to fears of potential lawsuits. County Judge Ruben Becerra emphasized the urgency for proactive measures, noting that existing regulations are insufficient for current challenges and that the county cannot wait for the 2027 legislative session. The revived proposal seeks to establish a task force to gather scientific data and coordinate with water providers, mirroring Becerra's earlier objectives.
The renewed push for a moratorium comes shortly after the San Marcos City Council rejected a 200-acre data center project within its city limits, following strong community opposition. Hays County currently hosts seven proposed or under-construction data centers. Unlike cities, counties in Texas typically lack zoning authority to block development, a point that Becerra and other commissioners have highlighted in appeals to Governor Greg Abbott for more regulatory power.
The broader context includes a lawsuit against neighboring Hill County, which rescinded a one-year data center moratorium after a developer sued for over $100 million in damages, arguing the county overstepped its authority. Texas has become a major data center hub, surpassing Virginia, due to limited state and local regulation and access to comparatively inexpensive resources. However, this growth is increasingly scrutinized due to potential impacts on water scarcity and electricity rates, with the Electric Reliability Council of Texas (ERCOT) projecting a 70% surge in energy demand by 2031, largely driven by data center expansion. The Texas House Natural Resources Committee is scheduled to hear testimony on these issues later this month.