RCM Hill LLC is a Texas-based data-centre development company formed to build Project Aquila, a 1,235 MW campus planned across more than 800 acres of Hill County farmland. It holds a large-load interconnection slot in ERCOT's grid queue and has no documented business activity outside the Aquila project.

RCM Hill LLC filed a $100 million federal lawsuit against Hill County, Texas on 28 May 2026, arguing that the county's moratorium on its Project Aquila campus was an unconstitutional regulatory taking under the Fifth and Fourteenth Amendments and the Texas Constitution. Hill County's commissioners court voted unanimously to rescind the moratorium on 4 June 2026, seven days later, and adopted new review requirements covering water use, traffic, noise and public notification in its place. RCM Hill's federal claim remains active regardless; it is still seeking a court declaration that the moratorium was unlawful, injunctive relief and damages.

The company spent more than 16 months assembling land agreements worth over $80 million across four landowners and holds an ERCOT large-load interconnection slot requiring a $61.75 million deposit by 24 July 2026 to avoid forfeiture. Its legal theory rests on Texas counties' narrow Dillon's-Rule authority: unlike Texas cities, counties hold no general zoning power and can regulate land use only where the legislature has expressly granted it. County Judge Shane Brassell called the 12 May 2026 moratorium vote illegal from the bench, and county attorney David Holmes warned commissioners in advance that they lacked the authority to enact it; the vote passed 3-2 regardless.

The case has become the reference point other jurisdictions weigh before legislating a pause. Santa Fe County, New Mexico's 18-month moratorium approved on 2 July 2026, the lowest threshold this topic has tracked at one megawatt, rests on the county's established water and environmental review powers rather than an ad hoc land-use freeze, the kind of statutory footing Hill County's moratorium conspicuously lacked. RCM Hill v. Hill County is now cited as the cautionary example of what happens when a moratorium is enacted without express legislative authority.

Common Questions

What is RCM Hill LLC suing Hill County Texas for?

RCM Hill LLC filed a $100 million lawsuit against Hill County on 28 May 2026, arguing the county's moratorium on its Project Aquila data-centre campus is an unconstitutional regulatory taking and that Texas counties lack the legal authority to impose such restrictions.Source: KWTX

Why does RCM Hill face a 24 July 2026 deadline?

ERCOT's queue reform requires developers holding interconnection positions to pay a binding deposit by a set date or lose their grid slot. RCM Hill owes $61.75 million by 24 July 2026 to retain its Project Aquila position, making a prolonged moratorium financially ruinous regardless of whether the lawsuit succeeds.Source: KWTX

Do Texas counties have the power to stop data-centre projects?

Texas counties hold weaker land-use authority than municipalities. They derive powers from specific state statutes rather than a general zoning grant. The Hill County commissioners' own attorney warned before the vote that the county lacked authority to impose the moratorium, which is the central legal question in RCM Hill's lawsuit.Source: KWTX

What is a regulatory taking under the Fifth Amendment?

A regulatory taking occurs when government action restricts the use of private property so severely that it effectively takes it from the owner without paying compensation. The Fifth Amendment requires just compensation when this happens. RCM Hill argues that Hill County's moratorium destroyed its investment-backed expectations in Project Aquila without compensation.Source: KWTX

Is the RCM Hill lawsuit against Hill County still going on?

Yes. Hill County rescinded its moratorium on 4 June 2026, but RCM Hill's federal takings claim remains active and it is still seeking a court declaration and damages.

Why did Hill County rescind its data centre moratorium?

To limit its exposure in RCM Hill LLC's $100 million federal lawsuit, which argued the moratorium was an unconstitutional taking the county had no statutory authority to impose.

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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