Data centers are fighting back against moratoriums on their development in Texas.
The Texas Tribune reports when Hill County Commissioners adopted a moratorium against a planned data center at Abilene, the developer filed a $100 million lawsuit. The county was one of the first in the state to enact a moratorium but now has reversed its stance in light of the legal action. Instead, as the Tribune reported, the county commissioners agreed to adopt a checklist it will require of data center developers, just two weeks after initially instating the temporary pause of up to one year.
The move comes as similar battles are popping up all across the state, especially in unincorporated areas where The Texas Tribune reported this week that almost half of planned data centers in Texas are planned to be built, up from 12% now. Whereas Texas cities have zoning authority, counties typically don’t have the power to block development.
RCM Hill, LLC, filed a lawsuit against the county last week in which it said it has existing contracts to buy more than 800 acres of land for more than $80 million of development on a data center project. Attorneys did not immediately respond to a request for comment.
Their suit, filed May 27 in federal court in Austin, argues that the county “exceeded its lawful powers” in passing the moratorium, which threatened their ability to meet standards set by state electricity regulators needed to petition for interconnection.
