Hill County is a Texas county whose data-centre policy became a test of the limited land-use powers held by counties rather than cities. Its relevance rests on the legal exposure created when a county pauses a major project without clear statutory authority.

The county's May 2026 moratorium targeted RCM Hill LLC's proposed 1,235 MW Project Aquila campus. RCM Hill responded with a federal taking claim, seeking $100m on 28 May.

The rescission on 4 June made Hill County a reference point for local governments considering data-centre restrictions. The episode shows that a county's role is constrained by the authority Texas law gives it, while developers can challenge a freeze through property-rights claims.

Key Issues

Data centre rules

Hill County rescinds its pause

On 28 May, developer RCM Hill LLC sued Hill County for $100m after the county paused its proposed 1,235 MW Project Aquila campus. The county judge and county attorney had said before the 3-2 vote that the moratorium was likely unlawful.

On 4 June, Hill County rescinded the moratorium seven days after the lawsuit began. The reversal ended the county's immediate restriction on Project Aquila before a court hearing, although the event record then described the damages claim as active.

Common Questions

Where is Hill County, Texas?

Hill County is a rural Texas county in the central Blackland Prairie region, about 70 miles south of Dallas. Its county seat is Hillsboro.Source: event

Why did Hill County vote to block a data centre when its own judge said it was illegal?

Three commissioners voted for the moratorium on 12 May 2026 despite County Judge Shane Brassell calling it illegal and the county attorney warning that Texas counties lack the statutory authority to impose such a restriction. The vote appears to reflect constituent pressure overriding legal advice.Source: KXXV

Do Texas counties have zoning powers to stop data centres?

No. Texas counties operate under Dillon's Rule and derive land-use powers only from specific state statutes. Unlike Texas cities, they have no general zoning authority. Hill County's own attorney confirmed this before the moratorium vote, which is central to the RCM Hill lawsuit.Source: KWTX

What is the Fifth Amendment taking claim against Hill County?

RCM Hill LLC argues that Hill County's moratorium constitutes a regulatory taking: a government restriction so severe it effectively deprives the developer of its property's economic use without paying compensation. The complaint invokes the Fifth and Fourteenth Amendments and the Texas Constitution, and the developer can point to $80 million in signed contracts and a $61.75 million ERCOT deposit Deadline to establish investment-backed expectations.Source: KWTX

Did Hill County keep its data centre moratorium?

No. The commissioners court rescinded it unanimously on 4 June 2026, replacing it with a Data Center Development Checklist requiring disclosure of water use, traffic, noise and economic impacts.

What review rules replaced Hill County's data centre moratorium?

A Data Center Development Checklist requiring developers to disclose water use, traffic and noise impacts and give public notice to residents and local media before major data-centre projects proceed.

Is RCM Hill's lawsuit against Hill County still active?

No. RCM Hill filed a stipulation of dismissal with prejudice on 9 July 2026, formally ending the case after the county rescinded its moratorium; Hill County agreed to pay $100,000 in legal fees to close it out.Source: KWTX

Source Material

$100M lawsuit filed against Hill County officials over data center moratorium Data center developer files lawsuit against Hill County moratorium