Hill County is a rural Texas county whose seat is Hillsboro, roughly 70 miles south of Dallas in the Blackland Prairie region. Texas counties operate under a modified Dillon's Rule, holding only the land-use powers the state legislature has expressly granted them, unlike home-rule cities.

Hill County's commissioners court voted 3-2 on 12 May 2026 to pause RCM Hill LLC's Project Aquila campus, a 1,235 MW data-centre development planned across more than 800 acres, despite County Judge Shane Brassell calling the move illegal from the bench and county attorney David Holmes warning in advance that the county lacked the statutory authority to enact it. RCM Hill filed a $100 million federal lawsuit on 28 May 2026 invoking the Fifth and Fourteenth Amendments and the Texas Constitution; the commissioners court rescinded the moratorium unanimously on 4 June 2026, seven days later.

In place of the moratorium the county adopted new review requirements: developers must disclose expected water consumption, traffic impacts, noise levels and economic effects, and give public notice to nearby residents and local media before major projects proceed. RCM Hill's federal lawsuit remains active regardless, seeking a court declaration that the original moratorium was unlawful plus damages.

The episode is now the reference case for the narrow legal ground on which Texas counties can restrict data-centre development. A ruling against Hill County would confirm that counties need express statutory authority before imposing any land-use freeze, a gap that does not apply to Texas's home-rule cities or to state-level freezes enacted by a legislature, such as Santa Fe County, New Mexico's 18-month, one-megawatt-threshold moratorium approved on 2 July 2026 on the back of established water and environmental review powers.

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, seven days after RCM Hill LLC's $100 million lawsuit, replacing it with new review requirements instead.

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

Developers must disclose water use, traffic and noise impacts and give public notice to residents and local media before major data-centre projects proceed.

Source Material

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

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