Hays County bars approval of new data centers through end of 2026
Hays County commissioners unanimously approved a resolution suspending approvals for water-intensive developments, including data centers, through December 31, 2026. This move comes amid a growing water crisis and significant resident opposition, and includes a task force for review and calls for greater state regulatory authority for counties. The county argues its development pause is legally sound despite other counties facing lawsuits over similar actions.
Hays County commissioners have unanimously approved a resolution suspending approvals for data centers and other "significant water use developments" until December 31, 2026. The decision follows months of public debate and significant opposition from residents concerned about the environmental impact and strain on local resources, particularly amid Texas's growing water crisis. This action makes Hays County one of several across the state seeking increased regulatory authority from the Texas Legislature over data center development.
County Judge Ruben Becerra stated that potential investors need to reconsider their footprint, as the county believes it lacks the necessary resources for such developments. The resolution establishes a water protection review period, creates a task force to assess future developments' impact on water resources and emergency infrastructure, and requires transparency reports and independent environmental studies from developers. Commissioners also passed a separate resolution urging the state Legislature to prioritize giving counties greater control over data center growth, joining Caldwell, Henderson, Hill, Hood, Somervell, and Van Zandt counties in this call.
The vote came as the Texas House Natural Resources Committee heard testimony on data centers' effects on the state's water and power supplies, with Hays County's resolution cited as an example of local governments seeking stronger oversight. While county actions like this often face legal challenges—as seen with Hill County being sued and forced to rescind its moratorium—Hays County officials and legal counsel, like Bobby Levinski from Save Our Springs Alliance, believe their approach is legally defensible due to existing county oversight on groundwater and infrastructure. The county's move aligns with a similar prohibition on new data centers enacted earlier this year by the city of San Marcos, a Hays County city, following intense community pressure that also blocked a proposed $1.5 billion project.
The article highlights that Texas has surpassed Virginia as the largest and fastest-growing data center market, with an estimated 70% increase in power demand by 2031 largely driven by data center growth, according to ERCOT. An average 100-megawatt data center can consume water equivalent to 6,500 households daily, raising critical concerns for residents like Torrie Martin, whose family farm has already experienced water supply issues from nearby data center projects.