Hays County stalls data center moratorium after another Texas county is sued
Hays County commissioners tabled a proposed 180-day moratorium on water and electricity-intensive developments, including data centers, due to legal concerns and the risk of lawsuits. This comes after Hill County was sued for over $100 million after enacting a similar moratorium, highlighting the legal challenges counties face in regulating data center growth without specific zoning authority. Residents of Hays County have strongly opposed new data center projects due to concerns about resource strain.
Hays County, Texas, commissioners once again postponed a decision on a proposed 180-day moratorium on new data centers and other water-intensive industrial projects in unincorporated areas, citing fears of potential lawsuits. County Judge Ruben Becerra had initially guaranteed a decision, but the commission tabled the vote after legal counsel advised caution, stating the resolution needed to be "legally defensible in court".
This hesitation stems from the experience of nearby Hill County, which was recently forced to rescind its one-year data center moratorium after a developer filed a lawsuit seeking over $100 million in damages, alleging the county exceeded its lawful powers. Other Texas counties like Hood and Van Zandt have also faced opposition from state lawmakers and the attorney general's office for attempting temporary bans, as counties typically lack the zoning authority that cities possess to block or pause development.
Hays County residents have been vocal opponents of data centers, participating in protests and successfully influencing the San Marcos City Council to reject a 200-acre data center project earlier this year. Concerns revolve around the significant water and electricity consumption of these facilities, with the proposed Hays County resolution targeting projects requiring over 25,000 gallons of water per day or five megawatts of electricity.
Commissioners agreed to revisit the moratorium discussion at their June 23 meeting, while also considering creating a task force for water protections and advocating for the Texas Legislature to grant counties greater regulatory authority over such developments. The region between Temple and San Antonio is a data center hotspot, with over 70 projects operating or in development, intensifying local resource strain.