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Friday, October 16, 2026 at 10:59 AM

Rural counties face hurdles in regulating data centers

Rural counties trying to slow or even block data center construction are finding they have limited legal authority, the Texas Standard reported. Hill County, for example, re - scinded a one-year moratori - um on data center construction after being sued for $100 mil - lion by a company planning a large-scale data center project near Hillsboro. RCM Hill argued that the county lacked the legal au - thority to impose the tempo - rary ban, which came after the company had already secured contracts for more than 800 acres for more than $80 mil -

lion.

“You’re not going to see anybody else trying a mora - torium at this point because they've seen what happens when you do it," said Robert Paterson, a professor at the University of Texas at Aus - tin who specializes in land use law. "You basically just get clubbed with a ridiculous amount of money." In Hood and Somervell counties, both southwest of Fort Worth, at least nine pro - posed data center projects are under consideration. Con - cerned citizens are filling county commissioner meet - ings, saying the projects could raise electricity bills, strain water resources, and harm tourism. Earlier this month, Gov. Greg Abbott ordered the Pub - lic Utility Commission to ensure that new data centers actually reduce residential electric bills and proposed that new laws be passed during next year's legislative session to further regulate the data centers.

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