Hood County judge dismisses lawsuit seeking automatic approval of proposed data centers

Hood County judge dismisses lawsuit seeking automatic approval of proposed data centers

News ClipKERA News·Granbury, Hood County, TX·7/20/2026

A Hood County district judge dismissed a lawsuit brought by developers, National CRE Holdings LLC and Greenland Capital LLC, who sought automatic approval for two proposed data centers. The court rejected the developers' argument that the county missed a 30-day statutory deadline, reinforcing the county's authority to review such projects. This decision is a victory for county officials and local opposition groups, though developers plan to appeal.

legaloppositiongovernmentwaterzoning
Gov: Hood County, Hood County District Court, Granbury City Council

District Judge Bryan Bufkin dismissed a lawsuit filed by National CRE Holdings LLC and Greenland Capital LLC, granting Hood County's Plea to the Jurisdiction. The developers had sought automatic approval for their proposed data center campuses, Project Red and Project Yellow, arguing county officials failed to act within a 30-day statutory deadline for development plan approvals under the state's local government code. The court rejected this claim, ruling that the proposed data centers did not fit the legal definition of "development plans" as outlined in the statute.

This decision is seen as a significant victory by Hood County officials and local advocacy groups like Protect the Paluxy Valley, co-founded by Laura Crawford. Crawford stated the ruling prevents developers from bypassing county oversight and reinforces the county's authority to review large industrial projects, considering impacts on water resources, infrastructure, and rural character.

The developers have indicated their intent to appeal the ruling. This legal battle is part of a broader local debate, with Hood County residents expressing strong concerns about data centers' effects on groundwater and community character. Separately, Granbury residents recently initiated recall efforts against five city leaders and filed no-confidence petitions against the city attorney and manager, citing a lack of transparency regarding the proposed Project Patriot data center.