The Stargate AI data center in Abilene, Texas, US, on Wednesday, Sept. 24, 2025. Stargate is a collaboration of OpenAI, Oracle and SoftBank, with promotional support from President Donald Trump, to build data centers and other infrastructure for arti
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HILL COUNTY, Texas – A Texas county has lifted its moratorium on data center construction less than a month after putting it into place.
Hill County commissioners voted to lift the moratorium Thursday in response to a lawsuit filed by a developer for damages. Instead, commissioners adopted a checklist that developers will need to follow.
Despite voting to lift the moratorium, commissioners said the implementation of the checklist was a win for Hill County.
What they’re saying:
“Given the exposure that the county is subject to and in light of the other things that are on our agenda, I think some of our goals, not all of our goals have been achieved, and I think that in order to protect the citizens of Hill County going forward…I vote yes,” Commissioner Jim Holcomb said.
The new checklist requires developers of major industrial developments to provide information on expected water use, traffic impacts, noise levels and economic effects. Projects will also be required to provide public notice to nearby residents and local media when those projects are proposed.
Hill County sued in response to data center moratorium
Commissioners passed a one-year moratorium on data center construction last month in a 3-2 vote. The move came after citizens of the county expressed their concerns about public health and safety with some residents saying they have already experienced issues with centers already operating in the county.
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The move raised questions about whether the county could enforce a moratorium, with county attorney David Holmes questioning the legality of the move during the May meeting.
Developer RCM Hill, LLC, filed a federal lawsuit against the county in the wake of the moratorium claiming it had spent nearly $1 million to buy more than 800 acres of land in the county to develop a data center.
RCM Hill argued that the moratorium would prevent the project from participating in ERCOT’s Batch Zero program, which allows ERCOT to evaluate groups of projects requiring large electric loads to be evaluated together.
They also argue that the moratorium caused several potential tenants to consider backing out of the project.
As of Wednesday, the lawsuit is still active in U.S. District Court for the Western District of Texas.
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