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Texas Legal Battle Continues Over AI Data Center Parcel

The county replaced the pause with a developer checklist after the company said the temporary moratorium threatened its power interconnection plans.

  • On Thursday, Hill County Commissioners voted unanimously to end the one-year data center moratorium and adopted a developer checklist, rescinding the pause just two weeks after its implementation.
  • Developer RCM Hill, LLC filed a $100 million lawsuit on May 27, arguing the county "exceeded its lawful powers" by passing the moratorium, which threatened their ability to meet state interconnection standards.
  • County Judge Shane Brassell said the moratorium was "a success" for buying time to develop the checklist, while fire officials cited safety concerns about data center proximity to the I-35 corridor.
  • The adopted checklist derives authority from state statutes, as Hill County officials navigate limited regulatory power in unincorporated areas compared to cities with zoning authority.
  • At least 248 data centers are planned across Texas, reflecting a statewide trend where industrial development outpaces regulatory capacity and intensifying debates over county authority.
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austinfreepress.org broke the news on Monday, May 18, 2026.
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