Developer Sues Hill County, Texas Over One-Year Data Center Moratorium
May 28, 2026
Developer Sues Hill County, Texas Over One-Year Data Center Moratorium
A legal battle has erupted in Hill County, Texas, after a developer filed a lawsuit challenging a newly enacted one-year moratorium on data center development. The case underscores growing tensions between local governments seeking to regulate rapid industrial growth and developers who argue such freezes violate property rights and established investment expectations.
The Hill County Commissioners Court approved the temporary ban in mid-May by a narrow 2-2 vote, with County Judge Shane Brassell casting the deciding vote to break the tie. The moratorium, which took effect immediately, categorically bars the commencement of construction for any data center-related projects within the county for a period of one year. However, the court left a provision allowing waivers for developers whose proposed projects are determined not to pose a threat to public health and safety.
RCM Hill, LLC, the company behind the lawsuit, alleges the moratorium is illegal and has filed its complaint against Hill County, County Judge Shane Brassell, and Commissioners Jim Holcomb and Larry Crumpton. According to the lawsuit, RCM Hill has spent more than 16 months and invested nearly $1 million to acquire the contractual rights to purchase over 800 acres of land in Hill County, as well as to secure the legal entitlements necessary to develop a data center on the site.
The lawsuit claims that Commissioners Brassell and Holcomb acknowledged the moratorium's illegality before voting to approve it, and that all three named officials "violated their oaths of office" and "caused Hill County to adopt an illegal moratorium." RCM Hill further asserts that the ban "deprives [RCM Hill] of its property, contract, development, and due process" rights under both the U.S. and Texas Constitutions.
The company is seeking declaratory and injunctive relief, asking the court to declare the moratorium null and void and to prohibit its enforcement. It also requests that Brassell, Holcomb, and Crumpton be barred from taking any official actions to enforce the ban. Hill County Attorney David Holmes stated that the county is "not in a position to comment at this time." The lawsuit highlights the broader industry challenge of balancing local regulatory control with the massive capital investments required for large-scale data center projects.
Source: kcentv
