Hill County faces lawsuit over data center construction pause
Hill County is facing a lawsuit from developer RCM Hill over a recently enacted year-long moratorium on new data center construction. RCM Hill claims the county knew the moratorium might be illegal and is seeking over $100 million in damages, arguing they spent millions preparing a project near Hillsborough.
The Hill County Commissioner's Court is currently addressing a lawsuit related to its recently enacted year-long moratorium on new data center construction. The moratorium, approved weeks prior, was intended to provide the court time to study the potential impacts of data centers on local water, power, and infrastructure.
Developer RCM Hill is suing the county, claiming to have invested millions in preparing a large data center project near Hillsborough. The company alleges that county leaders were aware the moratorium might be illegal before its approval, citing statements from commissioners who acknowledged its potential illegality during public meetings. RCM Hill is petitioning a judge to nullify the moratorium, prevent its enforcement, and is seeking over $100 million in damages.
Hill County Attorney David Holmes declined to comment on the ongoing litigation. A public meeting was scheduled to discuss the lawsuit.