Texas county rejects a moratorium on data center development amid AI boom
News ClipThe Texas Tribune·Granbury, Hood County, TX·2/10/2026
The Hood County Board of Commissioners in Texas voted 3-2 against a proposed temporary moratorium on new data center development, despite concerns from residents about the industry's impact on the region's water supply and energy demands. State Senator Paul Bettencourt warned the county that it lacks the legal authority to impose such a moratorium, and the disclosure of his letter sparked outrage among some commissioners. The failed moratorium would have paused new data center projects for six months to study their effects.
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Gov: Hood County Board of Commissioners, Texas Attorney General's Office, Texas Senate Committee on Local Government
Hood County, Texas voted down a proposed six-month moratorium on new data center development despite concerns from residents about water supply issues and environmental impacts. The vote came after a state senator threatened legal action, arguing counties lack the authority to impose such moratoriums. The data center industry says the facilities support thousands of jobs and generate substantial tax revenue in Texas, but critics warn they could strain the state's water resources. The failed moratorium would have allowed time to study the impacts of the rapidly expanding industry, which includes plans for a massive 2,600-acre data center complex near the rural town of Tolar.