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Texas county pauses data center construction in rural areas for a year

Texas county pauses data center construction in rural areas for a year
14 hours 47 minutes 42 seconds ago Tuesday, May 12 2026 May 12, 2026 May 12, 2026 8:47 PM May 12, 2026 in News - Texas news
Source: The Texas Tribune
Construction for OpenAI’s Stargate Milam County data center in Burlington, Texas on May 4, 2026. Leila Saidane for The Texas Tribune

A rural Texas county on Tuesday approved a one-year pause on the construction of new data centers in unincorporated areas, citing public safety and public health concerns.

The 3-2 vote by county commissioners in Hill County, roughly 55 miles south of Fort Worth, appears to be the first by a Texas county to issue a moratorium on the rapidly expanding industry.

Residents and local officials had aired concerns about how a proposed 300-acre development by the Dallas-based developer, Provident Data Centers in north Hillsboro could impact the quality of life in the rural county through noise pollution and consuming large amounts of water and electricity.

“The data center folks have found a sweet spot in the state that has limited regulations, limited enforcement, limited code, and they're coming faster than we can keep up with,” said Hill County Commissioner Jim Holcomb. “I think it's imperative … that we tap the brakes and we get our arms around what we're faced with and do the research, do the studies.”

Holcomb, who voted for the pause, said the move was in “no way, shape or form a push to impair anyone's right to do with their own property what they want to do with it.”

County Judge Shane Brassell said the temporary pause will allow officials time to study the effects of data centers before projects move forward.

Representatives of data center developers pleaded with the county to reject the moratorium and said they are bringing money to the county for schools and roads.

Before commissioners voted, County Attorney David Holmes cautioned them that they risk being sued by passing a moratorium. "You're damned if you and damned if you don't,” Holmes said.

The decision comes amid a growing statewide battle over Texas’ data center boom, particularly in rural counties where projects are rapidly moving into unincorporated areas with no zoning. In neighboring counties, residents have increasingly voiced frustration that projects are advancing faster than public understanding or oversight.

Other Texas counties, including Hood and Hays counties, have explored similar moratoriums. In Hood County, where at least eight large data center projects are pending, efforts to slow development drew pushback from state leaders.

Houston-area state Sen. Paul Bettencourt sent a letter to Texas Attorney General Ken Paxton on the day of the Hood County vote, claiming that counties have no constitutional or statutory authority to impose development moratoriums and asking Paxton to investigate counties that passed one. Hood County commissioners rejected the pause.

This article first appeared on The Texas Tribune.

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