Hill County Rescinds Data Center Ban After Federal Lawsuit

The Hill County Commissioners Court unanimously voted on June 4, 2026, to rescind a one-year moratorium on new data centers, power generation, and large battery storage projects in unincorporated areas. The ban had been in place for less than a month before the reversal, which was triggered by a $100 million federal lawsuit filed on May 27 by RCM Hill, LLC.

RCM Hill, LLC argued that the county lacked the legal authority to impose the ban and claimed it jeopardized Project Aquila, a 1,235-megawatt data center development involving 800 acres of land. The developer asserted the moratorium threatened its ability to meet state electricity regulator standards and participation in the Electric Reliability Council of Texas Batch Zero program.

To replace the ban, commissioners adopted a mandatory developer checklist based on state statutes. This new policy requires developers to provide detailed data on water usage, traffic, noise, and economic impacts, while increasing public notification requirements.

Despite the repeal, RCM Hill, LLC is continuing its lawsuit to seek damages and a formal declaration that the original policy was unlawful. County Judge Shane Brassell defended the brief moratorium, stating it helped officials identify unknown projects and deterred undesirable developers, while Commissioner Jim Holcomb noted the vote was necessary to protect the county from legal exposure.