Texas county lifts data center moratorium amid pressure from developer lawsuit
Hill County, Texas, commissioners voted to lift a recently enacted one-year moratorium on data center construction. This decision came in response to a federal lawsuit filed by developer RCM Hill, LLC, which claimed significant damages. The county instead adopted a checklist of requirements for major industrial developments, including details on water use, traffic, noise, and economic impacts.
Hill County, Texas, commissioners voted to lift a one-year moratorium on data center construction, which had been in effect for less than a month. This action was taken in response to a federal lawsuit filed by developer RCM Hill, LLC, seeking damages against the county.
The developer, RCM Hill, LLC, had acquired over 800 acres in Hill County for a data center project, investing nearly $1 million. The company argued that the moratorium would prevent its project from participating in ERCOT's "Batch Zero" program, which is crucial for evaluating large electric load projects, and caused potential tenants to reconsider.
Instead of the moratorium, the commissioners adopted a new checklist for major industrial developments. This checklist mandates that developers provide information on expected water use, traffic impacts, noise levels, and economic effects, as well as public notice to nearby residents and local media. Commissioner Jim Holcomb noted that while not all county goals were met, the checklist helps protect citizens and addresses the county's legal exposure.
The initial moratorium was enacted after Hill County citizens voiced concerns about public health and safety regarding data centers already operating in the area. County attorney David Holmes had previously questioned the legality of the moratorium. As of Wednesday, RCM Hill, LLC's lawsuit against the county remains active in the U.S. District Court for the Western District of Texas.