Caldwell County halts data center incentives amid calls for judge to resign
Caldwell County has suspended tax incentives for data centers amid public outcry and calls for County Judge Hoppy Haden to resign due to a conflict of interest involving a proposed land sale for a data center. This local action follows a broader trend in Central Texas to slow data center growth, including a statewide pause on some approvals ordered by Gov. Greg Abbott and a moratorium enacted by Hays County.
Caldwell County, Texas, has suspended tax abatements and economic incentives for data centers and large-scale battery storage facilities, joining a wider effort by local governments to manage the rapid expansion of the industry. This decision comes after Texas Gov. Greg Abbott ordered a pause on some data center developments statewide, directing regulatory authorities like the Public Utility Commission of Texas and ERCOT to audit developers before grid connection.
The county's move is intertwined with a significant controversy surrounding Caldwell County Judge Hoppy Haden. Haden faced calls for his resignation after it was disclosed that he and a former county assistant district attorney had entered into pre-sale agreements to sell their neighboring ranch properties for a new data center. Residents expressed a sense of betrayal, citing Haden's previous assurances to protect the community from data center proliferation.
Judge Haden has since withdrawn from the pre-sale agreements, stating it was "best for his family," but affirmed his intention to remain in office, suggesting voters decide his fate during re-election. The former assistant district attorney, Richard Sitton, was terminated due to conflict of interest concerns.
Caldwell County's actions align with other Central Texas localities like Lockhart, Bastrop, and Hays counties, which are also seeking greater local control over development or have already imposed restrictions. Hays County, for example, enacted a data center moratorium in June, and San Marcos banned all data center developments from its zoning code. The region continues to grapple with the rapid influx of data center projects, with over 70 developments currently tracked between Temple and San Antonio.