RCM Hill Sues Hill County Over Data Center Moratorium

Developer RCM Hill, LLC filed a federal lawsuit in Waco against Hill County and its officials, alleging that a one-year moratorium on new data center construction is illegal and unconstitutional. The Hill County Commissioners Court approved the moratorium on May 12, 2026, to evaluate the impact of large-scale facilities on electricity demand, water usage, and emergency services.

The lawsuit claims the measure disrupts Project Aquila, a planned 1,235-megawatt data center, and threatens critical Electric Reliability Council of Texas approval deadlines and a $61.75 million capacity deposit due July 24, 2026. The developer asserts that county officials ignored their own attorney, David Holmes, who warned that there was no legal basis for the pause and that the action constitutes a regulatory taking.

On May 29, 2026, Hill County Judge Shane Brassell postponed discussions regarding the $100 million lawsuit and a request for a moratorium waiver to refine the language of the meeting agenda. Local residents attended the meeting to express support for the moratorium to preserve the county's rural character, while county officials maintained that the pause is necessary to develop infrastructure protection standards.