Texas rural counties face hurdles in regulating data centers
Rural counties in Texas are facing legal challenges and limited authority in regulating data center construction. Hill County rescinded a one-year moratorium after being sued for $100 million by RCM Hill. Governor Greg Abbott has ordered the Public Utility Commission to address electricity concerns and proposed new state laws to regulate data centers.
Rural counties across Texas are reportedly encountering significant legal obstacles and limited authority in their attempts to regulate or halt data center construction. This challenge was highlighted by Hill County, which was compelled to rescind a one-year moratorium on data center development. The reversal came after a company, RCM Hill, filed a $100 million lawsuit against the county. RCM Hill argued that the county lacked the legal standing to impose a temporary ban, especially after the company had already secured contracts for over 800 acres totaling more than $80 million near Hillsboro. A University of Texas land use law professor, Robert Paterson, noted that other counties are now hesitant to implement moratoriums due to the financial risks.
Simultaneously, in Hood and Somervell counties, southwest of Fort Worth, at least nine new data center projects are under review. Local residents have voiced concerns at county commissioner meetings, citing potential increases in electricity bills, strain on water resources, and negative impacts on tourism.
In response to these statewide developments and concerns, Governor Greg Abbott issued an order to the Public Utility Commission. He directed them to ensure that new data centers contribute to the reduction of residential electricity bills. Furthermore, Governor Abbott proposed that new legislative measures be introduced in the upcoming session to enhance the regulation of data centers across the state.